Caspian Sunrise Regulatory News (CASP)

7 April 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, is pleased to announce the following operational update:

·; BNG South Yelemes Well 54 tests 200 barrels of oil per day and a rig is on location to spud Well 805

·; BNG seismic acquisition starts on 895 square kilometre programme

·; Ravninnoe well 20 tests 240 barrels of oil per day, with acid stimulation planned

·; Galaz pilot production approval now expected in May 2010 and well NK22 test results imminent

·; Munaily moving to commercial production

BNG (Roxi Interest 23.41%)

South Yelemes Field

The Company is pleased to announce the successful re-entry and testing of well 54, on the South Yelemes field, which was drilled to a total depth of 3250 metres. Upon testing the lower interval (starting from 2223 metres) the well flowed oil and formation water at rates up to 90 barrels per day due to water influx behind the casing, from a deeper water leg. After isolating the lower interval with a cement plug, the upper interval, across Upper Jurassic sands at a depth of 2212 metres, tested at an initial rate of 200 barrels of oil per day on a 5mm choke. The well will be put onto a 90 day production test prior to pilot production. 

Well 54 was originally drilled in 1988 and the reservoir was severely damaged during abandonment. Roxi is very pleased to have re-entered this well and achieved the production of dry oil. Furthermore, Roxi believes new wells should produce at significantly better rates.

BNG is also preparing to spud the first of two appraisal wells (805 and 806) on the South Yelemes field in mid-April. The drilling contractor, SNGS LLP, is completing safety inspections before hand-over of the rig to BNG. Well 805 will be drilled to 2500 metres to test two oil bearing Callovian sand intervals, one of which is producing in well 54. Following the cementing of production casing, the rig will move directly to the well 806 location which is being prepared for its arrival. Both wells have secondary targets in the upper part of Middle Jurassic formations. The wells are expected to take 30 days each to drill and following approvals for pilot production from the Kazakh authorities (currently applied for), they will be put onto production. After drilling wells 805 and 806, BNG is scheduled to drill between 3 and 6 further wells in 2010 to test other post-salt targets identified from 2009 seismic interpretation at between 1700m and 3000m depth. Drilling new exploration targets is expected to provide rapid organic growth to BNG's reserves base and production.

The Company currently estimates South Yelemes recoverable reserves to be: P90 6.7 million barrels, P50 12.5 million barrels, P10 20.1 million barrels. Following the appraisal drilling SPE reserves will be estimated later in the year.

3D Seismic Programme

BNG has mobilised the seismic contractor, Dank SIF LLP, to the contract area and commenced parameter tests prior to acquiring a total of 895 square kilometres of 3D data over the summer months. This represents some 46% of the contract area in coverage, which together with the 2009 3D seismic acquisition means that BNG will have 3D seismic data over 80% of the block. The remaining 20% of the block is scheduled for 3D seismic acquisition during 2011.

Ravninnoe (Roxi Interest 30%)

Well 20 drilled in November and December 2009, was perforated over a cumulative 18 metre interval of Middle Carboniferous dolomites and limestones on 26 March 2010. The well flowed at initial rates of 240 barrels of oil per day on a 4mm choke and has confirmed a 30 metre dry oil column. Ravninnoe plans to put the well on long term production test while preparing acid stimulation of the well to enhance productivity.

These results support the Company's initial estimates of up to 60mmbbls of oil in place (gross) in Upper and Middle Carboniferous reservoirs over the Ravninnoe structure. Following the successful confirmation of dry oil in the upper intervals and after long term production testing, the Company will also evaluate lower intervals for perforation.

Roxi has, together with Canamens Energy BV (32.5% interest) ("Canamens"), signed an agreement with the Kazakh partners (none of whom are related parties) who together hold a 37.5% interest in Ravninnoe Oil LLP, to facilitate the continued testing of well 20, and future operations. The deal, in the form of a Sale and Purchase Agreement, sets out the terms of assignment of interest (subject to State approval) should the Kazakh partners not be in a position to fund their share of the work programme in the future.

Galaz (Roxi Interest 50.14%)

NW Konys Field Pilot Production

The pilot production project submitted for approval in December 2009, still awaits final approval from the authorities. It is anticipated that approval will be granted in May 2010, allowing pilot production to commence immediately thereafter. Galaz currently has five production wells, which have a combined production rate of 1,200 barrels of oil per day based on the tests carried out during 2009. The pilot production will include a further four wells to be drilled later this year. In the meantime Galaz is installing a beam pump on well NK4, which will produce test oil until pilot production begins. McDaniel & Associates have been engaged to audit the reserves upgrade on the NW Konys contract area.

Well NK22

Galaz and Company LLP have mobilised the work-over rig and test facilities on well NK22 and are currently finishing preparation of the borehole for perforation of a 14m interval of the lowest Cretaceous Arskum sandstone reservoir and test results will be announced in due course.

Munaily (Roxi Interest 58.41%)

The Ministry of Oil and Gas for Kazakhstan has granted Munaily permission to proceed to a 19 year production phase of the Sub-Soil User Contract. Munaily is currently undertaking field development planning, and production facility designs with local institutes in order to comply with the required procedures to gain the necessary approvals for production later this year. Roxi anticipates that Munaily Field will be capable of producing between 300 and 400 barrels of oil per day, however, initial production will start at 80 barrels of oil per day from well H1.

David Wilkes, CEO said

"The first quarter has shown progress across all four assets. I am particularly pleased that we are selling our first oil from BNG, with the likelihood of sales from four assets by July. This test and pilot production will mean that we can expect to achieve further reserves in the near future "

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

Enquiries

Roxi Petroleum plc

David Wilkes CEO +7 727 244 0920

Matrix Corporate Capital LLP (NOMAD and broker)

Alastair Stratton / Anu Tayal +44 203 206 7000

Buchanan Communications (Financial PR)

Tim Thompson / Ben Romney +44 207 466 5000