Roxi Petroleum Plc Operational Update (6704N)

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RNS Number : 6704N

Roxi Petroleum Plc

28 October 2016

Roxi Petroleum Plc

("Roxi" or the "Company")

Operational update

Roxi, the Central Asian oil and gas company, with a focus on Kazakhstan, is delighted to update the market with news of its BNG operations.

Introduction

Roxi is pleased to update the market with news of Deep Well A6 and Shallow well 142.

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.

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, and reached a revised Total Depth of 4,528 meters in October 2016.

From the analysis of wireline logging , gross oil-bearing intervals totalling 127 meters have been identified. These are in two intervals, the first of 72 meters between depths of 4,313 meters and 4,385 meters. The second is of 55 meters between depths of 4,450 and 4,505 meters. Further analysis will be conducted to determine the portion of these intervals that are capable of producing commercial volumes of oil ( net pay ).

We now plan to complete the well by cementing a 5-inch liner to the Total Depth of the well.

Following this we intend to perforate the interval between 4,450 - 4,505 meters to allow a 90 day flow test to commence without delay.

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.

MJF structure

Well 142

Since our last update on 19 October 2016, Shallow Well 142 has been spudded and drilling has reached a depth at a depth of 600 meters without incident.

Well 142, is on the MJF structure some 1,600 meters to the north-east of Well 143. This well is being 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.

Clive Carver, Executive Chairman said

We are naturally delighted with the news from deep Well A6. The oil-bearing intervals identified there are larger than those previously identified at Deep Wells A5, which is believed to be in the same structure, and at Deep Well 801.

We now plan to move to the all important 90 day flow test without delay.

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 28, 2016 02:00 ET (06:00 GMT)