Roxi Petroleum Plc BNG Operational Update (2954U)
17 January 2017 - 6:00PM
UK Regulatory
TIDMRXP
RNS Number : 2954U
Roxi Petroleum Plc
17 January 2017
Roxi Petroleum Plc
Roxi Petroleum plc ("Roxi" or the "Company")
BNG Operational update
Introduction
Roxi, the Central Asian oil and gas company, with a focus on
Kazakhstan, is pleased to update the market with news from its BNG
Contract Area.
Background
Roxi has a 58.41% interest in the BNG Contract Area, which is
located in the west of Kazakhstan 40 kilometers southeast of Tengiz
on the edge of the Mangistau Oblast, covering an area of 1,702
square kilometres.
The block has both shallow and deep areas of interest.
MJF structure
The MJF structure is to date the most promising of the shallow
areas of interest at BNG on which three wells with depths between
2,480 and 2,750 meters have been drilled at costs of less than $2
million per well.
Well 142
Since our last update, an interval between 2,201 meters and
2,208 meters has been perforated and from which the well is testing
at a rates between of 215 and 290 bopd using a 8 mm choke.
As previously announced Well 142 is a material step out well,
located 1.8 km to the north east of well 143 and therefore it has
potential to confirm a significantly larger scale for the MJF
structure.
Importantly, the interval perforated is in the same horizon as
those producing at wells 141 and 143. We therefore believe the
structure at MJF extends to an area of approximately 10 km2.
The two wells previously drilled and testing on the MJF
structure, 143 and 141, are respectively producing at the rates of
479 bopd and 631 bopd using 6 mm and 7 mm chokes. Aggregate gross
production from the MJF is therefore up to approximately 1,400
bopd. In total production from BNG, is now up to approximately
1,567 bopd.
The price at which we are able to sell our oil under the
provisions of our licence has also increased (compared to the low
point of some $10 per barrel) by some 60% to approximately $16 per
barrel. Income from oil sales is being used to fund the drilling
and testing programme at BNG.
Well 808
Roxi is also pleased to announce the spudding of well 808, a
shallow well on a potentially new structure North of the South
Yelemes portion of the BNG Contract area, on which wells 805, 806
& 807 have already been drilled and are producing. The new well
is expected to take 2 months to drill.
The well is planned for a total depth of 2,750 meters targeting
Cretacious, Jurassic and possibly Triassic horizons. The cost of
the well is expected to be $2.5 million.
Bavistock Merger
Further to interim results announcement on 28 September 2016,
the Company is pleased to confirm that it expects to post a
circular to shareholders in connection with the proposed merger
with Baverstock in the coming weeks.
Clive Carver, Executive Chairman said
"These results from 142 and previously from 141 are exactly as
the Company had hoped for. At an appropriate juncture these results
will be passed onto Gaffney Cline so that they may review their
reserves estimate attributable to the MJF structure."
Comments:
Roxi Petroleum plc +7 727 375 0202
Clive Carver
Executive Chairman
WH Ireland, Nominated Adviser & Broker +44 (0) 207 220 1666
James Joyce
James Bavister
Abchurch +44 (0) 2017 398 7700
Tim Thompson / George Robinson / Rebecca Clube
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 announcement has been posted to:
www.roxipetroleum.com/roxi/en/investors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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