Roxi Petroleum is an AIM listed E&P company with assets entirely in Kazakhstan.
They have acreage in five licensing areas:
BNG 23.41% 1.561 sq mm
Ravinnoe 30% 121 sq km
Galaz 34.22% 30 sq km
Munaily 58.41% 0.69 sq km
Beibars 50% 167 sq km
First of all the bad news:
Ravinnoe contained an old Soviet discovery which Roxi drilled. This was a fairly deep and expensive well and failed to deliver the production rates anticipated. Roxi have now written down this asset and are looking to sell.
Munaily contains a 1m barrel recoverable field that Roxi initially intended to produce with a cheap well. They have now decided to sell this asset.
Beibars whilst prospective is currently under a force majeur as the land is used for Military exercises
Now some good news:
Galaz contains two discoveries, one NW Konys which has 6 wells drilled is in pilot production producing around 500 bopd awaiting a full production license. This is down as 14.6m barrels C1 C2 and Roxi expect production to be ramped up to 2000 bopd once the production license is obtained.
The NK22 structure has yet to be tested because the drilling contractor messed up the hole. This is currently being re-drilled at no cost to Roxi. To date we really don't know much about this structure and how material it maybe to Roxi.
However the Raison d'etre to invest in Roxi is because of BNG. This block lies just 40km away from the 8bn barrel Tengiz field. When Roxi acquired this acreage there were already 25 defined leads and some old undeveloped Soviet Era discoveries. Roxi have acquired extensive 3D seismic covering most of the block and have promised shareholders a full update in Q4. There have already been press speculation suggesting there are two 500m barrel plus prospects pre salt.
To date Roxi have re-entered one well and drilled two, all on the South Yelemes post salt structure. Well G54 yielded 200 bopd, 805 is expected to produce 150 bopd on pump whilst 806 an appraisal well found what is probably only residual oil.
They are currently now drilling Well 135 on a different structure that hasn't previously been drilled called North Yelemes. To date given the 3D…
Operational update today from Roxi:
http://www.roxipetroleum.com/roxi/en/media?ref=155
David Wilkes, CEO of Roxi, said:
" Although this is a disappointing result from the testing of the middle Jurassic reservoirs of well 806, we remain optimistic that the South Yelemes field will move to pilot production in 2011 based on the preliminary results from the existing wells already drilled on the field. Our focus will now shift to North Yelemes and some of the deeper prospects that we are identifying from the recent 3D seismic work undertaken."
