Operational Update

RNS Number : 1246W

Roxi Petroleum Plc

15 November 2010

 



For immediate release                                                                                                                                                15 November 2010

Roxi Petroleum plc

Operational Update

Roxi Petroleum plc ("Roxi" or the "Company")(ticker: RXP) is the Central Asian oil and gas company with a focus on Kazakhstan.

BNG (Roxi Interest 23.41%)

Well 806

The Company has completed testing the first of two test intervals in well 806, drilled in August-September 2010 to appraise the Middle Jurassic and Lower Cretaceous accumulations. Good quality Jurassic sands were perforated over an interval of 2255-2260m (measured depth). After perforating the well did not flow naturally, however after swabbing, an inflow of 40m³ of formation water was recorded, confirming the interpretation of an immovable residual oil column in the reservoir. 

Testing the Lower Cretaceous. Dolomites in well 806 is now planned for January/February 2011, and will be commenced following delivery of a pump (originally procured in August under new procurement and tender regulations) to fully evaluate the interval. The same stratigraphic horizon was tested in August with intermittent oil flow in well 805. Swabbing the well confirmed the potential for commercial flow on pump. If the Lower Cretaceous test on 806 confirms commercial production rates BNG will apply to have these reserves added to the South Yelemes  C1 Reserves for Pilot Production .

SNGS ZJ40 rig has been moved to the 135 well pad, and is currently being winterised and upgraded, including the installation of a third pump and new Shale Shakers. Exploration well 135 is planned to drill to a total depth of 2950m (drilled depth) in 42 days, and is targeting 4 way dip closure in stacked reservoirs  in the Lower Cretaceous Dolomite and Middle Jurassic sandstones. The well is also planned to penetrate the top of the Triassic interval.

Following recent successful meeting of the "Central Exploration and Development Committee", application for Pilot Production consent will move to the "State Geological Committee" for the next stage of approval.  BNG still anticipates receiving Pilot Production consent from the Ministry of Oil and Gas before the year end. However, following recent changes in the procedure for Emissions Permitting, full Pilot Production of South Yelemes is now expected to start during the second half of 2011. Despite this, the initial oil sales are expected to start in January, with oil from the 90 day testing of well 805, covered by separate applications and emissions permits.

Galaz (Roxi Interest 34.22%)

Roxi remains optimistic that drilling activity will recommence on the Galaz contract area before the end of the calendar year, once the LGI purchase of 40% of "Galaz and Company LLP" has been concluded, as well as placing the existing wells onto production on receipt of the Pilot Production Approval from the authorities.

Commenting on the announcement, David Wilkes, CEO of Roxi, said:

" Although this is a disappointing result from the testing of the middle Jurassic reservoirs of well 806, we remain optimistic that the South Yelemes field will move to pilot production in 2011 based on the preliminary results from the existing wells already drilled on the field. Our focus will now shift to North Yelemes and some of the deeper prospects that we are identifying from the recent 3D seismic work undertaken."

Qualified Person

Duncan McDougall, consultant to the Company 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, Chief Executive Officer                                                                    [phone]

Matrix Corporate Capital LLP (NOMAD and broker)

Louis Castro / Alastair Stratton                                                                                  [phone]

Buchanan Communications (Financial PR)

Tim Thompson / Ben Romney / Chris McMahon                                                [phone]

 

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