Roxi Petroleum Plc BNG Operational Update (2954U)

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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                                                             [phone] 

Clive Carver

Executive Chairman

   WH Ireland, Nominated Adviser & Broker                    [phone] 

James Joyce

James Bavister

Abchurch [phone]

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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January 17, 2017 02:00 ET (07:00 GMT)