TIDMRXP
RNS Number : 4108W
Roxi Petroleum Plc
07 November 2014
7 November 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
progress at its BNG, Galaz and Munaily assets.
BNG
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
As previously announced Deep Well A5 has an oil-bearing interval
of at least 105 meters between 4,332 and 4,437 meters.
Roxi is pleased to update the market with news of the continuing
preparations for the 30-day well test.
The very high pressure in the well during the drilling phase
resulted in heavy drilling fluids being used to control the
pressure, which need to be removed in a swabbing exercise before
flow testing can commence.
Coil tubing equipment has been mobilised and installed to clean
out the drilling fluids in the well as part of the swabbing
process. The majority of the drilling fluids have now been cleaned
from the well using the coil tubing. However, towards the end of
the process the coil tubing equipment experienced a compressor
failure, which needs to be replaced before the swabbing process can
be completed.
Accordingly, the 30-day well test is now likely to commence
towards the end of November 2014.
The well will be tested on an open-hole basis. The pressure at
the top of the well is some 7,000 psi., which will be helpful for
the flow test. The delay in replacing the faulty heavy duty
compressor powering the coil tubing equipment makes no difference
to the outcome of the flow test, the results of which will be used
to provide an external reserves estimate.
Further announcements on progress at Deep Well A5 will be made
in due course.
Shallow Well 143
As previously announced Well 143, which was drilled to a Total
Depth of 2,750 meters in 2013, tested for water with oil sheen in
the Valanginian section.
The focus has now shifted to the Jurassic section, between 2,704
and 2,710 meters and now additionally beween 2,692 and 2,694
meters.
Further announcements on testing at Well 143 will be made in due
course.
Galaz
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-22
Well NK-22 was drilled to a depth of 2,840 meters in 2010. The
interval between 1,439 and 1,451 meters was recently perforated and
following nitrogen injection the well produced water with oil. The
well is being monitored to assess its potential.
Munaily
The Munaily field is located in the Atyrau Oblast approximately
70 kilometres southeast of the town of Kulsary. The field was
discovered in the 1940s and produced from 12 reservoirs in the
Cretaceous through to the Triassic.
Roxi acquired 58.41 per cent interest of the 0.67 square
kilometres rehabilitation block in 2008 and funded two wells and
one well re-entry.
Licence
The license at Munaily is a full production license, with an
expiry term of 11 years where production can be sold at export
prices. However, the relatively low production volumes means that
the advance oil sales at Munaily to date have been conducted nearer
domestic prices with the proceeds used to fund the drilling of two
additional wells required under the agreed work programme.
Roxi's interest
Roxi maintains an effective 58.41 percent interest in the
Munaily Contract Area
Production volumes
To date Munaily has one producing well, H1 where production is
at the rate of 150 bopd. A second well, Well 39, has been
perforated and is currently undergoing swabbing before the well is
placed on production.
A further announcement will be made once the rate of production
is known.
Drawdown under the $40 million equity facility
To meet the costs at BNG to the end of the year, including the
costs of testing Deep Well A5, Roxi has called down a further $1.7
million from the $40 million equity facility announced in January
2013 with Mr Satylganov, a Director of the Company. This brings the
total called and received to date to $26.2 million.
Roxi will accordingly issue a further14,244,542 shares to
Mr.Satylganov, so that the total number of shares issued to
Mr.Satylganov are 219,533,544, representing 25.6 per cent of the
enlarged total shares in issue. The price of the shares issued to
Mr.Satylganov is 7.41p, based on the agreed exchange rate of
GBP1=$1.61 in the subscription agreement dated 14 January 2013.
Roxi will apply for the 14,244,542 subscription shares to be
admitted to trading on AIM and it is anticipated that trading in
such shares will commence on 12 November 2014. The total number of
shares in issue following the issue of these shares will be
858,433,994. Roxi has no shares in Treasury, therefore this figure
may be used by Shareholders, from Admission, as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure and
Transparency Rules.
Enquiries
RoxiPetroleum PLC
Clive Carver, Chairman +7 727 375 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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