Caspian Sunrise Regulatory News (CASP)

12 May 2009 08:46



Roxi Petroleum plc

Operations update, allotment of the BNG extension shares & funding update and notice of General Meeting

Operational update

Galaz Contract Area

Roxi Petroleum plc ("Roxi" or "the Company"), the Kazakhstan based oil exploration and development company is pleased to announce a successful test of the first two NW Konus wells, on the Galaz Contract Area, in Kyzylorda Oblast, Central Kazakhstan. The initial tests of wells NK3 and NK6 are complete and are summarised below:

Average daily test production from NW Konus field is currently 1000bopd

Light, 38o API oil

Reserves estimated to be 13 million barrels C1 and a further 5 million barrels C2. SPE reserve estimates will be calculated after completion of testing

Well NK3 was tested on multiple chokes up to a rate of 881bopd on a 9mm choke. 

Well NK 6 was opened and after clean up was tested on multiple chokes up to a rate of 310bopd on a 9mm choke.

Well NK5 is cleaning up and once stablised flow is established will be put on to test.

NK4 has been swab tested and flowed dry oil intermittently. The well is currently being re-perforated in order to establish natural flow.

Testing activities at NW Konus will pause on May 14th pending receipt of the paperwork granting the required extension of the Sub-Soil User Contract by the Authorities.

BNG Contract Area

The first block of 160km2 3D seismic has been completed over the old Yelemes-54 discovery and Yelemes -1 discoveries. These discoveries were made in the 1980's, but never appraised. The seismic is currently being processed in Almaty, by PGS Kazakhstan, prior to interpretation and selection of appraisal drilling locations in Q3. 

The completion of the acquisition of the full 366km2 3D survey is expected by the end of May.

Allotment of the BNG extension shares

Pursuant to the agreements entered in relation to the acquisition of Eragon plc in March 2008, and the subsequent satisfaction of outstanding conditions 46,153,846 new Ordinary shares have been allotted to Vertom International N.V ("Vertom"), 1,807,692 have been allotted to David Slater and 500,000 have been allotted to PJT International. Application will be made to The London Stock Exchange for the new Ordinary Shares to be admitted to trading on AIM. It is expected that admission will be effective and that trading of the new Ordinary Shares will commence on 18 May 2009Following the allotment of shares, Kuat Oraziman a director of Roxi who has an interest in Vertom is now beneficially interested in 86,941,898 of Roxi shares representing approximately 23 per cent of the total issued share capital. 

Funding update & Notice of General Meeting

As previously announced the Company has been in discussions with a number of parties in connection with new funding, in addition to the asset based funding being provided by Canamens for Roxi's Ravninnoe and BNG assets. Some of these discussions have reached an advanced stage and in preparation for an agreement the board believe it is now prudent to rebase the Company's nominal share value.

Company law prevents the issue of ordinary shares below their nominal value. The current share price has traded below the nominal share price for some time, although of late the gap has narrowed. To allow flexibility in our discussions with potential funders the board consider it prudent to seek shareholder approval to rebase the nominal value of the Company shares to 1p. Each of the 373,317,105 issued Ordinary Share will be sub-divided into one new ordinary share of 1p (a "New Ordinary Share") and sub-divided and redesignated into one deferred share of 9p (a "Deferred Share"). Further, each unissued Ordinary Share will be sub-divided into 10 New Ordinary Shares. Each New Ordinary Share will, effectively, have the same rights (including voting rights and dividend rights) as each issued Ordinary Share. The limited rights attached to the Deferred Shares (which will not be listed or freely transferable) will render them effectively valueless. A resolution rebasing the nominal value is included in a notice of general meeting which has been convened for 28 May 2009 and which is being sent to Shareholders and is available on the Company's website at www.roxipetroleum.com. Shareholders are requested to complete the forms of proxy.

Qualified Person 

Duncan McDougall, Technical Director of Roxi Petroleum 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. 

12 May 2009

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