LONDON (Alliance News) - Oil and gas company Roxi Petroleum PLC Friday said that a well test at its Deep Well A5 in the west of Kazakhstan has been delayed, and will now begin towards the end of November.
Roxi said that very high pressure in the well during the drilling phase had led to heavy drilling fluids being used to control the pressure, which will need to be removed before flow testing can begin.
Although the majority of these fluids have now been cleaned from the well using coil tubing equipment, towards the end of the process this equipment saw a compressor failure, which will need to be replaced before the process can be finished. Roxi stressed that the delay in replacing the faulty heavy duty compressor will make no difference to the outcome of the flow test.
The results of the test will be used to provide an external reserves estimate.
At its well 143 in the same area the company has shifted focus towards the Jurassic section, and will make further announcements on testing in due course. It is monitoring its NK-22 well, in the Galaz block of central Kazakhstan to assess its potential.
In the Munaily contract area the company has one producing well, which it said is producing at a rate of 150 barrels of oil per day. A second well in this area has been perforated, and is currently undertaking swabbing before it is placed on production. Relatively low production volumes mean that advance oil sales at Munaily to date have been conducted nearer to domestic prices, Roxi said, and the proceeds have been used to fund drilling of two additional wells.
Roxi has drawn down a further USD1.7 million from its USD40 million equity facility with a director of the company to meet its costs, including the costs of testing the A5 well. This has led Roxi to issue a further 14.2 million shares to the director, Chief Financial Officer Kairat Satylganov, at a price of 7.41 pence.
Shares in Roxi Petroleum are trading down 6.2% at 12.90 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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