Operational Update

RNS Number : 5820L

Roxi Petroleum Plc

10 May 2010

 



For immediate release                                                                                               10 May 2010                                                                                                                                  

Roxi Petroleum ("Roxi" or "the Company")

Operational Update

Roxi Petroleum ("Roxi" or "the Company"), the Central Asian oil and gas company with a focus on Kazakhstan, announces the following operational update:

·     BNG - First tranche of 3D acquisition completed over North Yelemes

·     Ravninnoe - Well 20 ready for 90 day production test and acidisation

·     Galaz NK22 testing delayed and remedial action required

BNG (Roxi Interest 23.41%)

South Yelemes Field

Well 805 has set the 9 5/8 inch casing (at a depth of 803 metres) and is drilling ahead towards the target Jurassic section and planned total depth of 2500m.

3D Seismic Programme

Seismic contractor, Dank SIF LLP, has completed the northern section of the 3D seismic programme on the contract area. BNG is currently evaluating bids for seismic processing and will be awarding the seismic processing contract shortly. Priority will be given to processing and interpretation of this first tranche of data to delineate exploration potential on the North Yelemes area.

Seismic acquisition has now started on the southern area and is scheduled to be completed in August 2010.

Ravninnoe (Roxi Interest 30%)

The work-over rig has been released and demobilised from Well 20, and the well prepared and connected up to production facilities for 90 day production testing and acid stimulation, scheduled to begin during May 2010.

Well 20 was drilled during November and December 2009 and perforated over a cumulative 18 metre interval of Middle Carboniferous dolomitic carbonates on 26 March 2010. The well flowed at initial rates of 240 barrels of dry oil per day.

Galaz  (Roxi Interest  34.2%)

Well NK22

Initial attempts to perforate and test the Arskum sandstone have proved to be unsuccessful due to a poor cement bond and subsequent water influx from behind casing.  Galaz is currently preparing plans for remedial action, most likely to be cement squeeze and reperforation. Under the terms of the recently announced Sale and Purchase Agreement ("SPA"), further operations will wait until the Company's new partner, LG International, have reviewed and approved the programme. Before closing of the SPA which will be subject to various State approvals, the parties have agreed to revise the operating company (Galaz and Company LLP) constituent documents such that LG International will have operational control of the sub-soil user contract.

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                                                                                                                            [phone]

Matrix Corporate Capital LLP (NOMAD and broker)

Alastair Stratton / Anu Tayal                                                                                                       [phone]

Buchanan Communications (Financial PR)

Tim Thompson / Ben Romney / Chris McMahon                                                                [phone]

 

END

 

 

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