LONDON (Alliance News) - Roxi Petroleum PLC Friday said it has received a licence extension at the Galaz contract area in Kazakhstan for a further two-year period to May 14, 2016, and preliminary tests have shown possible indications of oil in its NK-31 well at the site.
The oil and gas exploration and development company said the Galaz licence, in which it has a 34.44% interest, has been extended on its current pilot production basis, although a request can be made for a full production licence.
The company said its NK-31 well, which is currently drilling at the site, has reached 2,350 metres and is closing in on its total depth of 2,500 metres targeting the Middle Jurassic formation.
Roxi said core samples have been taken in two regions at the site, with one showing sandstones, and high gas shows were detected when drilling at the depth of 2,283 metres, which could be possible indications of oil regions.
The company said it should reach total depth by the end of July, and another announcement will be made once results of further analysis are available.
"Although Roxi investor focus in recent months has been at our BNG asset, based on our drilling activities at Galaz we are now confident Galaz is also a valuable asset and one we wish to develop further," Roxi Chairman Clive Carter said in a statement.
On Wednesday, Roxi announced that it had found oil at Kazakhstan's BNG contract Area, which is near the major Tengiz and Kashagan oilfields, news that more than doubled its share price during the day.
The deep A5 well detected oil and gas shows at a depth of 4,332 metres and core samples were taken to determine the full size of the horizon.
Roxi Petroleum shares were flat to 7.75 pence on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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