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RNS Number : 3466U
Roxi Petroleum Plc
15 October 2014
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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