LONDON (Alliance News) - Roxi Petroleum PLC on Wednesday said initial testing at Shallow Well 141 has indicated the MJF structure extends over a considerable area, while preparatory work has begun at its Shallow Well 142.
The Central Asian oil and gas company holds a 58.41% stake in the BNG contract area, which is located in the west of Kazakhstan and which covers 1,702 square kilometres. Within the BNG block, Roxi Petroleum has focused on two shallow regions, the Yelemes and the MJF structure.
Roxi Petroleum said on Wednesday drilling commenced at the Well 141, within the MJF structure, in August 2016, initially targeting Jurassic Callovian sands at a depth of 2,200 metres.
The well was drilled to a total depth of 2,500 metres on a turnkey basis at a total cost of USD1.3 million.
During the drilling at Well 141, five oil-bearing intervals were identified for testing. At the first of the intervals, the well was perforated over six metres at between 2,230 and 2,236 metres. Early flow test results indicate the well to be producing at the rate of 220 barrels of oil per day using a 3 millimetre choke, and 480 barrels of oil per day using a 5 millimetre choke.
Further testing at this site is planned including an extended production test.
Drilling at a second well within the structure, Well 142, is expected to commence in the next few weeks and be completed "well before the year-end". This well is also to be drilled on a turn-key basis for USD1.3 million to a total depth of 2,500 metres.
Elsewhere at the BNG block, within the Ayrshagyl portion, Roxi Petroleum said its Deep Well A6 was spudded last November, and based on the analysis of mud logs it decided to complete the well at a depth of 4,528 metres.
Although mud-logs are "only preliminary", Roxi Petroleum said they suggest the well has penetrated oil bearing intervals. Roxi Petroleum said it will make a further announcement on this after completing and analysing a wire-line log subject to which it expects to conduct flow testing.
"We believe the successes at Well 141 indicates the MJF structure extends over a considerable area. At A6 we have managed the very challenging drilling of the well better than with Deep Wells A5 and 801 and accordingly will better placed to move to flow testing in due course," said Executive Chairman Clive Carver.
Shares in Roxi Petroleum were up 27% at 11.29 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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