Last checked at 29 Sep 2015 07:01
Roxi Petroleum PLC
("Roxi" or the "Company")
Update on operations at BNG
Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to further update the market with news of progress at its flagship BNG asset and on the collection of the outstanding sales proceeds from Galaz.
Deep Well 801
Deep Well 801 was spudded on 15 December 2014 with a planned Total Depth of 4,950 meters. The well is located approximately 8 kilometers from Deep Well A5 and was planned to target the same structure as Deep Well A5 in the Middle and Lower Carboniferous. The well was drilled by Sinopec, the Chinese multinational, at a fixed cost of $11 million.
As previously reported core samples and logging have revealed a potentially oil bearing interval starting from 4,536 meters and extending 100 meters. The pressure and temperatures encountered indicate this well is unlikely to be connected to the reservoir targeted by Deep Well A5. Therefore should Deep Well 801 prove commercially viable it would be a separate discovery to the potential discovery previously announced in connection with Deep Well A5.
The well has been drilled to a total depth of 5,050 meters and five potential levels for production have been identified below the salt layer. Since the previous update the lowest two of these levels have been perforated (4,822 meters and 4,896 meters).
Testing has commenced at the well at the perforated levels with gas detected and oil shows. The well has been closed to allow pressure to increase. We expect to reopen the well in the next few days and are hopeful that at that time oil will flow naturally to the surface.
Current production
Aggregate production from shallow wells 54, 805, 806, 807 and 143 is some 453 bopd (265 bopd net to Roxi). Additionally Munaily continues to produce at the rate of 145 bopd (85 bopd net to Roxi).
Under the terms of the BNG licence all production is sold a domestic price, which is currently $10 per barrel.
Proceeds from the sale of Galaz
Roxi is also pleased to report that the full amount of the proceeds due from the sale of its interests in Galaz have now been received.
Of the $100 million gross sales price some $23 million was attributable to Roxi with a further $11 million attributable to Baverstock, Roxi's partner across the Eragon assets, including BNG. Accordingly the full $34 million expected from the sale of Galaz is available to develop BNG.
Comment:
Clive Carver, Chairman said
We continue to make steady progress across our three active wells. A positive outcome at any one of these will be major step forward for the Company and we look forward to updating the market with further news in due course.
It is also pleasing to have collected the full amount due from the sale proceeds at Galaz. These funds can now be put to work further developing BNG".
Enquiries:
Roxi Petroleum PLC Clive Carver, Chairman
+7 727 375 0202
WH Ireland Ltd James Joyce / James Bavister
+44 (0) 207 220 1666
Qualified Person
Mr. Nurlybek Ospanov, Roxi's senior geologist who is a member of the Society of Petroleum Engineers ("SPE"), has reviewed and approved the technical disclosures in this announcement.