Caspian Sunrise Regulatory News (CASP)

 15 October 2014

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 further update the market with news of the deep discovery at its flagship BNG asset plus updates for the shallow wells at BNG and the Deep Well NK-31 at Galaz.

Background

The BNG Contract Area is located in the west of Kazakhstan 40 kilometres southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometres of which 1,376 square kilometres has 3D seismic coverage acquired in 2009 and 2010.

Roxi has a 58.41 per cent interest in the BNG Contract Area.

Deep Well A5

On 1 September 2014, Roxi announced the thickness of the gross oil-bearing interval commencing at 4,332 meters was at least 105 meters, between 4,332 meters and 4,437 meters.

Roxi is pleased to announce that the preparation work for the all important flow test continues as planned. Well stimulation work has been completed during which oil flowed, showing the reservoir is oil bearing with dissolved gas. The pressures encountered meant the periods during which the oil flowed were short and not sufficient to obtain reliable measurement as to quantity.

The oil recovered is good quality light oil, brown in colour with a blue hue and has no hydrogen sulphide content. A full analysis of the oil will be available following lab test after the 30-day testing period.

Once the drilling fluids used have been fully cleaned out from the well and, if required, new equipment has been installed further pressure tests will be conducted to assess the integrity of the casing. We will then commence the 30 day flow test.

BNG Shallow Wells

Our approach to the South Yelemes portion of the BNG Contract Area has been to drill several wells to prove the size of the area over which oil discovered in the Valanginian extends. Wells 54, 805, 806 and 807 all drilled to depths between 2,500 and 3,000 meters have all produced oil from the Valanginian and Jurassic and are considered by Roxi to be commercial.

Well 143, which was drilled to a Total Depth of 2,750 meters in 2013, is located some 5 kilometres from Well 806.

The interval in the Valanginian section between 1,943 and 1,950 meters have tested for water with oil sheen.

We are now preparing to test from lower intervals, the Jurassic section, between 2,704 and 2,710 meters and now additionally beween 2,692 and 2,694 meters.

We will update the market once the tests are concluded

Galaz

Roxi is also pleased to provide an update to progress at Well NK-31 on its Galaz Contract Area.

Background

The Galaz block is located in the Kyzylorda Oblast in central Kazakhstan. The Contract Area was extended on 10 January 2011 to 179 square kilometres and now includes significant exploration upside on the east side of the Karatau fault system, as well as the NW Konys development.

The operator is LGI, the Korean multi-national, which invested US$34.4 million by way of loans into the project and paid a further US$15.6 million in return for 40 per cent of the asset. A total of 30 square kilometres 3D seismic has been acquired and processed.

Roxi has a 34.44 per cent interest in the Galaz Contract Area.

Well NK-31

Well NK-31, which is targeting the Middle Jurassic on the main Contract Area, has been drilled to a total depth of 2,642 meters with casing set to its full length.

As previously announced core samples taken between 2,070 and 2,079 meters in the Karagansaisky horizon contain an interlayering of argillite and conglomerates. 

Also as previously announced high gas shows were detected when drilling at the depth of 2,283 meters (Doshan Suite). Core samples were taken between 2,283 and 2,292 meters and preliminary, analysis showed the core consists of sandstones.

Four intervals in the Doshan suite have now been tested and no oil was detected. The interval between 2,107 and 2,110 meters has also tested dry. The next interval to be tested will be between 2066 and 2080 meters in the Karagansay suite and we will provide a further update once the results of these tests are known.

Comment

Clive Carver, Chairman commented

"The preliminary view at our deep well A5 is that the reservoir is oil bearing and the quality of the oil is good. The next step remains to assess how much recoverable oil we have."

Enquiries

RoxiPetroleum PLC

Clive Carver, Chairman +7 727 727 375 0202

WH Ireland plc

James Joyce / James Bavister +44 (0) 20 7220 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.