REG - Roxi Petroleum Plc - Licence extension and operational update <Origin Href="QuoteRef">RXP.L</Origin>

Caspian SunriseAnnouncement

06/09/2014 14:43

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RNS Number : 0393M
Roxi Petroleum Plc
11 July 2014 
 
 For immediate release  11 July 2014  
 
 
Roxi Petroleum plc 
 
("Roxi" or "the Company") 
 
Licence extension and operational update 
 
Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is
pleased to update the market with news of a licence extension and of
operational progress at its Galaz asset. 
 
Galaz 
 
The Galaz block is located in the Kyzylorda Oblast in central Kazakhstan. The
Contract Area was extended on 10 January 2011 to 179 square kilometres and now
includes significant exploration upside on the east side of the Karatau fault
system, as well as the NW Konys development. 
 
The operator is LGI, the Korean multi-national, which invested US$34.4 million
by way of loans into the project and paid a further US$15.6 million in return
for 40 per cent of the asset. A total of 30 square kilometres 3D seismic has
been acquired and processed. 
 
Roxi has a 34.44 interest in the Galaz Contract Area. 
 
Licence 
 
Roxi is pleased to announce the extension of the licence at the Galaz Contract
Area for a further two-year period to 14 May 2016.  The licence has been
extended on the current pilot production basis, although at the request of
Galaz LLP may be converted to a full production licence. 
 
Well NK-31 
 
As previously announced Roxi Well NK-31 has been spudded and is to be drilled
to a total depth of 2,500 meters targeting the Middle Jurassic. The well is
expected to reach Total Depth by the end of July 2014.  It is being drilled on
the main Contract Area. 
 
Drilling has reached a depth of 2,350 meters without incident. Core samples
taken between 2,070 and 2,079 meters in the Karagansaisky horizon contain an
interlayering of argillite and conglomerates. 
 
High gas shows were detected when drilling at the depth of 2,283 meters
(Doshan Suite). Core samples have been taken between 2,283 and 2,292 meters
and preliminary, analysis shows the core consists of sandstones. 
 
A further announcement on this well will be made in due course when the
results of  further analysis are available. 
 
Clive Carver, Chairman commented 
 
"Although Roxi investor focus in recent months has been at our BNG asset,
based on our drilling activities at Galaz we are now confident Galaz is also a
valuable asset and one we wish to develop further." 
 
Enquiries 
 
RoxiPetroleum PLC 
 
Clive Carver                                                                  
        +44 (0) 20 7220 1666 
 
WH Ireland plc 
 
James Joyce / James Bavister                                              +44
(0) 20 7220 1666 
 
Qualified Person 
 
Mr. NurlybekOspanov, 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