Last checked at 20 May 2013 07:00
For immediate release 20 May 2013
Roxi Petroleum plc
("Roxi" or "the Company")
Operational update
Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to provide an operational update on its flagship BNG asset.
Well 806
Background
Roxi has a 58.41 per cent interest in the BNG Contract Area, which already has three wells at South Yelemes part of the Contract Area. Well 54 is a Soviet era well that was re-entered in 2010 and Wells 805 and 806 were drilled in 2010. Testing of these wells was delayed pending changing farm-in partners.
Following the $40 million equity commitment secured in January 2013 Roxi decided to test these wells. On 18 February 2013, Well 54 produced at a daily rate of 219 bopd with a 2mm choke. On 14 February 2013, Well 805 produced at a daily rate of 120 bopd using a sucker rod pump.
Latest test results
As announced on 9 May 2013, the first level between 2,022 and 2,032 metres was tested for a period of 6 days during which the natural flow rate averaged some 90 bopd.
The second interval between 1,998 and 2,015 metres has been tested for a period of 2 days during which the natural flow averaged some 130 bopd.
Testing is now to be carried out on the third interval between 1,985 and 1,994 metres.
As previously announced, once it is clear which interval is the most promising, Roxi plans to conduct a full 90-day test at the chosen interval.
As the test results are interpreted, Roxi will update the market accordingly in due course.
Well 143
Well 143 was spudded on 1 April 2013, on the MJ-F structure located towards the North of South Yelemes field at BNG. The total depth of the well is planned to be 2,500 metres.
This exploration well is targeted to encounter Jurassic Callovian sands at a depth of 2,170 metres with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,935 metres.
The well reached a depth of 1,612 metres but then paused to deal with a faulty drill pipe. Drilling is set to resume in the next few days and it is now expected that the total depth will be reached in mid June.
Deep Wells
As previously announced, Roxi intends to drill two deep wells at its BNG asset in 2013. The first well is to be drilled to a depth of 4,700 metres and the second to a depth of 4,200 metres.
Roxi is pleased to report that the equipment required to spud the first deep well is now on site and being assembled. Roxi expects this well to be spudded in the next two weeks.
Comments
Clive Carver, Chairman commented:
"We are delighted that the results of the second interval at Well 806 are even better than the first interval. This makes us more confident in the economic potential of the well in general.
We are also excited about the imminent deep well spudding of the first of our two deep wells this year."
Enquiries
Roxi Petroleum PLC c/o Buchanan
Clive Carver, Chairman +44 (0) 20 7466 5000
WH Ireland plc
James Joyce / James Bavister +44 (0) 20 7220 1666
Buchanan (Financial PR)
Tim Thompson / Tom Hufton +44 (0) 20 7466 5000
Qualified Person
Mr. Hyunsik Jang, Chief Operating Officer of the Company, has reviewed and approved the technical disclosures in this announcement. He holds a BSc in Geology and has 25 years of international experience of exploration, appraisal and development of oilfields in a variety of environments.