Roxi Petroleum Plc Spudding Shallow Well 141 (2244H)

TIDMRXP

RNS Number : 2244H

Roxi Petroleum Plc

16 August 2016

Roxi Petroleum PLC

("Roxi" or the "Company")

Spudding Shallow Well 141

Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to provide shareholders with the following operational update.

BNG Contract Area

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 resumed full control of BNG Ltd LLP in 2011.

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.

Development activities have focused on both deep drilling in the Ayrshagyl area and shallow drilling in the Yelemes area.

BNG Shallow wells

BNG's shallow wells are located in the Yelemes portion of the BNG block. They extend over an area of 800 sq. km. and are focused on proving the extent of a number of promising horizons.

We are currently producing in aggregate 616 bopd (332 net to Roxi) from 3 shallow wells.

For some time our belief has been that the shallow horizon produced from by wells 54, 805, 806, & 807 extends significantly further than the relatively small area in which they were drilled.

Well 143, which was drilled to a depth of 2,750 meters on the MJ-F structure located towards the North of South Yelemes field at BNG. Well 143, which has produced at a maximum rate of 815 bopd using a 7mm choke, is 3,000 meters distant from these other wells and first indications from this well are that the shallow horizon does indeed extend over a significant area.

Shallow well 141

Seeking to replicate the success of Well 143 Roxi is pleased to announce that Shallow Well 141 has been spudded. The new well is located some 1,150 meters from Well 143 with a planned depth of 2,450 meters.

As with Well 143 the new well is initially targeting Jurassic Callovian sands at a depth of 2,200 meters with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,900 meters.

The well is being drilled for a fixed cost of $1.25 million.

Comments:

Clive Carver, Chairman commented

"We continue to place importance on developing the shallow portion of the BNG asset, in particular targeting structures where we have already enjoyed success.

Income from these wells will be used in part to extend our deep drilling programme."

Enquiries:

Roxi Petroleum PLC

Clive Carver, Chairman [phone]

WH Ireland Ltd

James Joyce / James Bavister [phone]

Abchurch

   Tim Thompson / Nessyah Hart                                                [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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August 16, 2016 02:00 ET (06:00 GMT)