Last checked at 21 Jan 2016 10:23
Roxi Petroleum PLC
("Roxi" or the "Company")
Extension to the BNG Contract Area
Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to update the market with news of a 140.6 sq kilometers extension to the BNG Contract Area.
Existing BNG Contract Area
Background
The BNG Contract Area is located in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometers of which 1,376 square kilometers has 3D seismic coverage acquired in 2009 and 2010.
Roxi has a 58.41% interest in the BNG Contract Area via its 59% holding of Eragon Petroleum Limited.
Existing Licence
In June 2015, the BNG licence was successfully renewed for a further three- year period to 7 June 2018.
The main focus of activity during the period of the renewed licence is to prove up the greatest amount of reserves consistent with avoiding unnecessary dilution to Roxi shareholders (the "Estimation Phase").
During the Estimation Phase oil produced will be sold at domestic Kazakh prices. Thereafter, subject to the findings of the Estimation Phase, Roxi intends to seek a full production licence at BNG, which will allow oil produced to be sold at international prices.
Our development approach and progress to date
The BNG Contract Area has both shallow and deep prospects, both of which Roxi is actively developing.
Production from our 5 operational shallow wells is currently at the rate of 1065 barrels of oil per day ("bopd") (622 net to Roxi).
Extension Area
The Kazakh regulatory authorities have granted BNG an extension to the BNG Contract Area of some 140.6 sq km to the north-east of the current block.
The price for the extension is $2 million and has been paid by Roxi.
Development approach to the Extension Area
Roxi intends to acquire 3D seismic data on the new territory before finalising its drilling plans. Of particular interest is the deep formation currently being explored by Deep Wells A5, 801 & A6, which the Company believes extends into the new extension area.
BNG work programme
Roxi has also signed with Kazakh state authority an additional amendment to the existing Contract, under which BNG is obliged to drill at least three wells, two deep wells including A6 and one shallow well, in the period to the next licence renewal in June 2018.
Ends
Comments:
Clive Carver, Chairman said
"We are delighted to have secured this potentially important extension to the deep prospect currently being drilled at BNG. Notwithstanding the current low global oil prices there has seldom been a better time for companies with funding to explore for new discoveries.
Competition for assets is low and the drilling and allied exploration costs are at historically very low levels.
We firmly believe the companies which will be successful over the medium term will include those buying and developing well in these more difficult times."
Enquiries:
Roxi Petroleum PLC
Clive Carver, Chairman +7 727 375 0202
WH Ireland Ltd
James Joyce / James Bavister +44 (0) 207 220 1666