Roxi Petroleum Plc (LON:RXP) , the central Asian oil and gas company, announced today an operational update, primarily regarding their BNG prospect. The BNG Contract Area (Ayrshagyl Field) is a 1,561km2 exploration contract area in the South Emba sub-basin of the Pre-Caspian Basin, in the Mangistau Oblast. The block is 40km from the super-giant Tengiz field. Roxi acquired a 58.4% interest in the block in February 2008, as a part of the Eragon acquisition. The acreage was newly awarded to the subsidiary operating company, BNG LLP in June 2007, and contains a large number of exploration opportunities at Jurassic, Triassic, Lower Permian and Middle Carboniferous levels. In addition there are several Soviet era discoveries including South Yelemes field, which the company plans to bring into Pilot Production in 2010. The company has acquired 580km2 of 3D seismic which is yielding a number of drillable prospects for 2010 and 2011, and further seismic is planned over the area in 2010
Highlights of today's update included: the BNG South Yelemes Well 54 has been tested and is producing 200 barrels of oil per day to be sold and the seismic acquisition of the prospect is soon to start it's 895 square kilometre programme. The Ravinnoe well 20 is producing 240 barrels of oil per day, with acid stimulation planned and the Galaz pilot production approval is now expected in May 2010. The NK22 test results are expected soon by the company and the Munaily well is now moving into production. David Wilkes, CEO commented:
"The first quarter has shown progress across all four assets. I am particularly pleased that we are selling our first oil from BNG, with the likelihood of sales from four assets by July. This test and pilot production will mean that we can expect to achieve further reserves in the near future "
The company also announced today a share issue of 3,600,000 new ordinary shares of 1p each, at an exercise price of 10 pence per share.
