Roxi Petroleum Plc Deep Well Update (4527P)

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RNS Number : 4527P

Roxi Petroleum Plc

19 August 2014

For immediate release 19 August 2014

Roxi Petroleum plc ("Roxi" or "the Company")

Further update on the Deep Discovery at BNG, Well 143 and Well NK-31

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 together with progress at its BNG shallow Well 143 and at Well NK-31 at its Galaz Contract Area.

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

Well A5, the first deep well on the BNG Contract Area, with a planned Total Depth of 4,700. meters.

On 5 August 2014 it was announced that oil and gas shows had been detected at a depth of 4,332 meters over the full 12 meters core taken. On 11 August, following a second core sample, it was announced that the oil bearing interval was at least 33 meters.

Roxi is pleased to announce a third core sample of 18 meters has been successfully taken at a depth between 4,365 and 4,383 meters, of which 1.6 meters was recovered. This shows the aggregate thickness of the gross oil-bearing interval extends to at least 51 meters.

Roxi now intends to determine the full extent of the oil-bearing interval by drilling and logging rather than taking additional core samples. Once this has been completed and after delivery of additional equipment Roxi intends to put Well A5 on flow test.

Further announcements on the progress of this well will be made in due course.

Shallow wells

BNG's shallow wells are located in the Yelemes portion of the BNG block. They extend over an area of 800 sq. km. and are focused on proving the extent of a number of promising horizons, in particular in the Cretaceous Valanginian.

Well 143

Well 143, which was the first of the shallow wells for 2013, was spudded on 1 April 2013, on the MJ-F structure located towards the North of South Yelemes field at BNG. The well was drilled to a total depth of 2,750 meters. This exploration initially targeted Jurassic Callovian sands at a depth of 2,170 meters with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,935 meters.

The well is now being swabbed before testing commences on the intervals of interest.

Should Well 143 test positively Roxi believes it could significantly extend the horizon already being produced from by Wells 805 and 54.

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 now been drilled to a total depth of 2,642 meters and casing has been 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.

Work is now under way preparing the well for logging to determine which intervals to perforate for further testing.

Comment

Clive Carver, Chairman commented

"At more than 51 meters the gross oil-bearing interval at BNG Well A5 now exceeds our initial expectations. We remain excited by the potential of the deep horizons at the BNG Contract Area and look forward to the results of the flow test."

Enquiries

RoxiPetroleum PLC

   Clive Carver, Chairman                                                         [phone] 

WH Ireland plc

   James Joyce / James Bavister                                              [phone] 

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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