Last checked at 10 Aug 2010 09:00
| For Immediate Release | 10 August 2010 |
Roxi Petroleum plc
Operational Update
Roxi Petroleum plc ("Roxi" or "the Company"), the Central Asian oil and gas company with a focus on Kazakhstan, announces the following Operational update:
·; BNG
o Seismic acquisition completed over central and northern areas
o BNG seeking to acquire 2011 seismic programme in 2010
o Well 806 spudded on South Yelemes
o Technical audit by third party delayed to Q4 2010
·; Galaz
o NK22 discovery to be redrilled, rig mobilised
BNG (Roxi Interest 23.41%)
3D seismic
The 2010 seismic acquisition programme was completed on 31 July 2010. A total of 483 km2 (full-fold data) was completed by contractor Dank, approximately one month ahead of schedule. BNG is now seeking the necessary regulatory approvals to move the 2011 seismic programme forward, and acquire approximately 300km2 of additional seismic at the earliest opportunity, likely to be in the winter.
South Yelemes
Well 806, targeted to appraise South Yelemes Jurassic sands, was spudded by SNGS ZJ40 rig on 31 July 2010. The well is approximately 1.5km east of well 805 and is planned to drill to a true vertical depth of 2500m. The well is currently operating at 800m depth and is preparing to run intermediate casing.
BNG has received necessary approvals to deviate well 806 and will begin the deviation in the next section of drilling.
BNG has mobilised Tzansco LLP work-over rig to well 805 which will commence testing the Jurassic and Lower Cretaceous Zones, shortly.
BNG Resource and Volumetric Update
Roxi are continuing to progress plans to conduct a third party assessment of the Company's resource base in BNG. Due to third party complications out of Roxi's control, this study has been delayed and will now be completed in the 4th quarter of 2010.
Galaz (Roxi Interest 50.14%)
Well NK22
Galaz and Company LLP has negotiated with drilling contractor KazRosMunai to re-drill the Arskum target in well NK22 as the most secure way of testing the formation. The offset well is designated NK20, and will be drilled to 1500m. Galaz have mobilised the rig and are due to spud the well shortly.
As previously announced, the original well failed to set cement across the Arskum formation and to surface, which resulted in an inconclusive test. The partners in Galaz are seeking to establish the potential of the NK22 structure as early as possible, and believe this to be the most effective route.
Commenting on the announcement, David Wilkes, CEO of Roxi, said:
"We are delighted to have completed the acquisition of seismic over the central and northern areas of BNG as we continue to improve our understanding of all our assets. We now hope to proceed with the 2011 seismic programme later this year. The Company is currently highly active across its portfolio of assets and we look forward to updating the markets on the results of wells 805, 806 and NK20."
Qualified Person
Duncan McDougall, consultant to the Company and a Fellow in the Geological Society, London, has reviewed and approved the technical disclosure in this announcement. He holds a BSc in Geology and has 25 years international experience of exploration, appraisal, and development of oilfields in a variety of environments
Enquiries
Roxi Petroleum plc
David Wilkes, Chief Executive Officer +7 727 244 0920
Matrix Corporate Capital LLP (NOMAD and broker)
Louis Castro / Alastair Stratton +44 (0) 203 206 7000
Buchanan Communications (Financial PR)
Tim Thompson / Ben Romney / Chris McMahon +44 (0) 207 466 5000