Roxi Petroleum Plc Operational Update (5840R)

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RNS Number : 5840R

Roxi Petroleum Plc

30 June 2015

Roxi Petroleum PLC

("Roxi" or the "Company")

Update on operations at BNG

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.

Deep Wells

Deep Well A5

The well was spudded in July 2013 and drilled to a total depth of 4,442 meters with casing set to a depth of 4,077 meters to allow open hole testing. Core sampling revealed the existence of a gross oil-bearing interval of at least 105 meters from 4,332 meters to at least 4,437 meters.

In February 2015, we announced that the major part of coil tubing had been removed from the well. The 50 meters of coil tubing remaining in the well, which still contained drilling fluids, was trapped at a depth of 2,996 meters with a metallic object believed to have been dropped during the clean-up works.

The blockage at Deep Well A5 has now been cleared and pressure in the well has returned to levels encountered when it was originally drilled. The stuck pipe at the bottom of the well remains but is not expected to affect the outcome of the 30-day well test.

The equipment required for the 30-day test has been delivered to site and the test is set to start following the completion of the required preparatory work.

Deep Well 801

Deep Well 801 was spudded on 15 December 2014 with a planned Total Depth of 4,950 meters. The well is located approximately 8 kilometers from Deep Well A5 and was planned to target the same structure as Deep Well A5 in the Middle and Lower Carboniferous. The well is being drilled by Sinopec, the Chinese multinational, at a fixed cost of $11 million.

As previously reported core samples and logging have revealed a potentially oil bearing interval starting from 4,536 meters and extending 100 meters. The pressure and temperatures encountered indicate this well is unlikely to be connected to the reservoir targeted by Deep Well A5. Therefore should Deep Well 801 prove commercially viable it would be a separate discovery to the potential discovery previously announced in connection with Deep Well A5.

At the date of this report the casing has been set to a level of 4,790 meters and drilling has resumed to a new planned total depth of 5,100 meters targeting Lower Permian and Middle & Lower Carboniferous oil bearing reservoirs. Further, should oil-bearing reservoir be revealed, core samples will be taken as appropriate during the final 310 meters drilling.

Shallow wells

Wells 805, 806, 807 and 54 are on test production with average daily production from 4 wells of 37 tons or 280 barrels of oil per day ('bopd') (165 bopd net to Roxi).

Well 143 currently is under workover to survey interval between 2,704 - 2,706 and 2,692 - 2,693 meters (Middle Jurassic J2).

Clive Carver, Chairman said

"Progress at the BNG deep wells can best be described as steady. However, we look forward to reporting the results of our ongoing work in the near future."

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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