Roxi Petroleum Plc Operational Update (9181M)

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RNS Number : 9181M

Roxi Petroleum Plc

19 October 2016

Roxi Petroleum Plc

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 update the market with news of its BNG operations.

Introduction

Roxi is pleased to update the market with news of its initial testing at Shallow Well 141 and the preparatory work for new shallow Well 142 together with an update on Deep Well A6.

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 1,561 square kilometers of which 1,376 square kilometers has 3D seismic coverage acquired in 2009 and 2010.

In January 2016, Roxi announced that the area of the Contract Area was extended with the addition of 140.6 square kilometres to the north-east of the current block. The extended BNG Contract Area now covers 1,702 square kilometers.

The block has both shallow and deep areas of interest.

Shallow Wells

Roxi is interested in two shallow regions of the BNG block, (1) Yelemes, which include producing wells 54, 805, 806 & 807 and (2) MJF structure, which include producing well 143 and now producing Well 141.

To date Roxi has drilled 5 shallow wells to typical depths of 2,500 meters. In aggregate the wells have produced up to 1,100 bopd (642 bopd net to Roxi) on test and all of the wells are considered to be commercially successful.

On 2 September 2016 we published a reserves update from Gaffney Cline & Associates, derived solely from our shallow fields which, based on 100% economic interest, was:

(P90) Proved reserves of 18.3 million barrels

(P50) Proved and Probable of 29.3 million barrels

(P10) Proved, Probable & Possible reserves 45.0 million barrels

These take no account of any reserves from our deep sub-salt drilling success.

MJF structure

Well 143

Well 143, which was drilled in 2013 has to date been the best performing of Roxi's shallow wells. Recently production from this well increased to some 630 bopd following the switch from a 5mm choke to a 7mm choke. The current production rate is 500 bopd using a 5 mm choke.

Well 141

At Well 141, which is located some 1,200 meters to the southwest of Well 143, drilling commenced in August 2016, initially targeting Jurassic Callovian sands at a depth of 2,200 meters.

The well was drilled to a Total Depth of 2,500 meters on a turnkey basis at a total cost of $1.25 million.

The well was perforated over six-meters at between of 2,230 & 2,236 meters and early flow test results indicate the well to be producing at the rate of 220 bopd using a 3 mm choke and 480 bopd using a 5 mm choke. Further testing is planned including an extended production test.

Well 142

The rig used for 141 is being moved to drill Shallow Well 142, which is also to be drilled on the MJF structure but this time some 1,600 meters to the north-east of Well 143. Drilling Well 142 is expected to commence in the next few weeks and be completed well before the year-end.

This well is also to be drilled on a turn-key basis for $1.25 million to a Total Depth of 2,500 meters.

The principal reason for drilling Wells 141 and 142 is to seek to prove the extent of the MJF structure, which, if successful, should increase reserves.

Deep Wells

Our deep drilling exploration has to date been contained in the Ayrshagyl portion of the BNG block which extends over an area of some 120 sq km., where we have drilled three deep wells, A5, 801 and A6 to depths of 4,442, 5,050, and 4,528 meters respectively.

Deep Well A6

Deep Well A6 was spudded in November 2015, targeting the same structure as Deep Well A5 in the Middle and Lower Carboniferous, with an original target Total Depth of 4,750 meters.

Based on the analysis of mud logs we decided to complete the well at a depth of 4,528 meters. Although mud-logs are only preliminary, they suggest Deep Well A6 has penetrated oil bearing intervals.

A further announcement will be made after the completion and analysis of a wire-line log subject to which we expect to conduct flow testing.

Clive Carver, Executive Chairman said

We believe the successes at Well 141 indicates the MJF structure extends over a considerable area.

At A6 we have managed the very challenging drilling of the well better than with Deep Wells A5 and 801 and accordingly will better placed to move to flow testing in due course.

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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October 19, 2016 02:00 ET (06:00 GMT)