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Shares of Roxi Petroleum plc (LSE:RXP) jumped 11.7% in early morning trading after the Kazakhstan-focussed oil and gas firm said gross production from its Galaz field is anticipated to be at 500 barrels of oil per day (bopd).
Roxi shares traded as high as 3.688 pence following the news before it went down to 3.25 pence, or an 8.3% increase from yesterday’s close at 12:37 PM GMT.
The oil and gas explorer issued the statement following the initial production testing at its NK8 well, previously designated as NK14, which resulted in an oil flow of as much as 251 bopd using a 7-millimetre choke.
Roxi’s Chairman, Clive Carver stated “the results from NK8 when taken together with test production from NK6 and NK7 will mean production from Galaz at around the 500 bopd level”.
NK6 and NK7 have been flowing at a controlled rate of 156 bopd and 180-190 bopd, respectively, with NK7 having reached a maximum of 620 bopd through an 8-mm choke.
Roxi holds 34.22% working interest in the Galaz field, a 180-square kilometre operated by Galaz and Company LLP.
“Production at (this) level at Galaz provides a strong underpinning of the Company’s valuation,” Mr. Carver further stated.
Eyes Set Elsewhere
But Roxi’s eyes are set elsewhere to its BNG licence, which covers 1,561-square kilometres and resulted in an oil show of about 566 metres after drilling Well-136 last December 2011.
The potential of the said well prompted Roxi to actively look for a farm-out partner after its previous deal was called off and found a subsidiary of the Korean National Oil Corporation to throw in US$5 million in cash and $25 million investment in the BNG licence in return for a 35% stake.
Deep drilling campaign in the said licence is targeted to commence in Autumn, according to Mr. Carver.
Company Spotlight
Roxi Petroleum plc focusses its’ operations in the Central Asian country of Kazakhstan, where it holds interests in four licences in different stages of oil and gas exploration and production.
Established in 2006, the company’s shares are listed on the Alternative Investment Market of the London Stock Exchange in 2007.
