Roxi Petroleum Plc Operational Update (8440G)

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RNS Number : 8440G

Roxi Petroleum Plc

09 March 2015

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 flagship BNG asset.

Background

The BNG Contract Area is located in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometers of which 1,376 square kilometers has 3D seismic coverage acquired in 2009 and 2010.

Roxi has a 58.41 per cent interest in the BNG Contract Area.

Deep Wells

Well A5

Since the operational update on 13 February 2015, the final 50 meters of coil tubing and drilling fluids have been successfully cleared from Deep Well A5.

The well remains blocked by a drill bit dropped during the clean up operation. Work continues to remove the drill bit to allow testing. Based on progress to date Roxi's management still expects the well to be clear and testing to have commenced by the end of March.

Despite the blockage small quantities of oil of a high quality continue to flow to the surface under its own pressure.

Well 801

Deep Well 801, which was spudded on 15 December 2014, is to be drilled to a total depth of 4,950 meters targeting the Lower Carboniferous. The well is being drilled by Sinopec, the Chinese multinational, for a fixed cost of $11 million USD.

The well is located approximately 8 kilometers from Deep Well A5 and will be targeting the Lower Carboniferous in same structure as Deep Well A5.

Roxi is pleased to announce that drilling at Deep Well 801 has reached the salt layer at 3,560 meters without incident. As planned drilling has now paused to allow casing to be set.

Once the casing is set we plan to drill through more difficult intervals comprising first a salt layer of approximately 300 meters and then an 800 meter section with high pressure in the lower Permian.

The final 310 meters to be drilled to a Total Depth of 4,950 meters is expected to be less difficult to drill. Periodically during the remaining stages of drilling work will pause to set further casing.

We continue to expect the well will reach Total Depth by mid April 2015.

Shallow Wells

Our shallow wells at BNG are located in the South Yelemes portion of the BNG Contract Area extending over an area of 800 sq. km, a few kilometers from the deep prospects.

Well 143

We have tested Well 143 for a prolonged period during which water was produced with the oil. Following extended swabbing operations Roxi is pleased to report that using a 3mm choke, oil with only minimal water content has been produced under natural flow, at the rate of 70 bopd (41 net to Roxi) from the combined intervals between 2,704-2,709.5 meters and 2,692-2,693.5 meters.

We are now continuing the testing of those intervals and will then also test intervals in the Upper Jurassic between 2,410-2,413 meters and 2,193-2,202 meters.

Wells 54, 805, 806 & 807

These wells are currently producing at the rate of 375 bopd (218 net to Roxi).

Comment:

Clive Carver, Chairman said

"Operationally things are going well. The work to clean up Deep Well A5 continues as planned and to date drilling Deep Well 801 has been a far smoother experience than our first deep well A5. We are also particularly pleased that our extended swabbing activities at Well 143 have been rewarded with what appears to be commercial rates of production of naturally flowing oil."

Enquiries:

   Roxi Petroleum PLC                                                  Clive Carver, Chairman 

[phone]

   WH Ireland Ltd                                                         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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