Caspian Sunrise Regulatory News (CASP)

19 Mar 2008 08:13

Roxi Petroleum Plc19 March 2008 Operations Update Roxi Petroleum plc ("Roxi" or "the Company"), the Kazakhstan based oilexploration and development company, that on 3 March 2008 acquired 59% of EragonPetroleum Plc for US$190m satisfied by the allotment of 145m ordinary shares at65 pence per share, announces the current operational status of all of theassets operated by Roxi. Rob Schoonbrood, CEO, said, "We are hard at work to accelerate the progress ofall of the oilfields now included in Roxi's portfolio of oil and gas assets. Wewill keep our investors abreast of all significant developments on a regularbasis." Ravninnoe Contract Area Roxi has completed the acquisition of a 193 km2 3D seismic survey over theContract Area located in Mangistau and Atyrau Oblasts of Western Kazakhstan. Atthe end of January, 2008 the final data was delivered by the seismic contractor,KazGeCo, to Veritas Caspian LLP for processing. The survey is designed toresolve the detail of the Ravninnoe oilfield, which Roxi believes is acombination of structurally and stratigraphically closed clastic reservoirs inthe Middle Carboniferous. On the 12 March 2008, Roxi began the first of five well re-entries planned for2008 to establish the condition of the wellbores and possibly test-produce thereservoir. These wells were drilled in the 1980's and encountered oil shows inCarboniferous sandstones at depths between 3200m and 3300m, Roxi will acquiremodern wireline log data and perforate and test the Carboniferous reservoirs ifthe wellbores are in safe and sound condition. Beibars Contract Area Roxi has completed all environmental and regulatory permissions in order toacquire a 121km2 3D seismic survey over the Contract Area located in theMangistau Oblast of Western Kazakhstan. This survey was originally planned forthe fourth-quarter of 2007 but was delayed for 3 months due to proceduralmatters. A further delay has been encountered pending resolution of a recentconflict in land use rights issued to both Roxi and the Kazakhstan Ministry ofDefense which is considering the surface area for use in training exercises.Discussions with the local Land Use Authority have taken place to seek aworkable solution. Subject to resolution of this issue, the Seismic Contractor,KazGeCo, will mobilize and begin work in mid 2008. Galaz Contract Area (NW Konus) The acquisition of approximately 30km2 of 3D seismic was completed in its Galaz(NW Konus) Contract Area located in the Kyzylorda Oblast of Central Kazakhstan.The seismic contractor, Azimut, completed the acquisition of the survey inJanuary 2008. The dataset is currently being processed by Geostan. The objectiveof the survey is to better define the structural and stratigraphic detail of theUpper Jurassic reservoir sands with existing proven, probable, and possiblereserves. The survey will also assess the exploration potential in the lowerCretaceous-Neocomian sands and in deeper undrilled Jurassic sequences. Wells #26 and 27 were re-entered the fourth quarter of 2007. Well #26 was re-perforated in the Jurassic sands at a depth of 1330m and 10m3 of oil and waterwere recovered to surface. Well #27 was re-perforated in Cretaceous sands at adepth of 1315m and 50m3 of oil and water were recovered to surface. Roxi willinstall a pump to test Well #27 within the month. Basic production equipment isbeing installed to test Well #26. Tenders for new well drilling have been received and a contract will be awardedto begin drilling in the second quarter of 2008. BNG Contract Area (Ayrshagyl) Roxi has applied for an extension of a portion of the Contract Area in its BNG(Ayrshagyl) Contract Area located in the Mangistau Oblast of Western Kazakhstanto cover structures within the original block. Should the extension be granted, the company will perform gravity and seismicsurvey programs on this area and elsewhere on the block in 2008. Munaily Contract Area Two wells were drilled on its Munaily Contract Area located in the Atyrau Oblastof Western Kazakhstan in the fourth quarter of 2007. Well H1 was drilled to a total depth of 1270m and encountered a 12m grossthickness of oil bearing Jurassic sands at 1228m. The well was completed and putonto production test in January 2008. The well has flowed under natural flow atrates of approximately 80 barrels of oil per day over a 30 day period, Uponcompletion of testing, further prospective zones existing in the wellbore willbe perforated and tested. Well H2 was drill to a depth of 600m and encountered initial indications of oilin existing reservoirs. Further work is needed to test this and other zones inthe well. Enquiries: Roxi Petroleum plc Rob Schoonbrood, CEO +7 727 244 0920 David Barker, COO +7 727 244 0920 College Hill (Financial PR) Paddy Blewer +44 (0) 20 7457 2020 Nick Elwes +44 (0) 20 7457 2020 WH Ireland (NOMAD and broker) James Joyce/David Porter +44 (0) 20 7220 1666 Qualified person Duncan McDougall, Technical Director of Roxi Petroleum and a Fellow in theGeological Society, London, has reviewed and approved the technical disclosurein this announcement. He holds a BSc in Geology and has 25 years internationalexperience of exploration, appraisal, and development of oilfields in a varietyof environments. This information is provided by RNS The company news service from the London Stock Exchange