Roxi Petroleum: Shallow and Deep Well Update on BNG

Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to provide an operational update on its flagship BNG asset, in which Roxi maintains a 58.41% interest.

Shallow wells

Well 143

As previously announced, Well 143 was spudded on 1 April 2013, on the MJ-F structure located towards the North of South Yelemes field at BNG. The total depth of the well was planned to be 2,500 metres.

This exploration initially targeted Jurassic Callovian sands at a depth of 2,170 metres with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,935 metres.

As the middle Jurassic section is also expected to be within 4-way dip closure in the MJ-F structure as well as the top Jurassic section, Roxidecided to drill continuously to 2,750 metres, 250 metres deeper than the original planned depth. The well reached the total depth of 2,750 metres on 21 June 2013 and at that time wireline logging was completed.

Interpretation of these results has been encouraging with three main intervals of interest identified, between 2,193, 2,216 and 2,692 metres. Additionally a fourth interval of interest at 2,088 meters has been identified from the core samples and will now be tested.

Testing will commence in September by a work-over rig. Testing on all four intervals is expected to be completed by October 2013.

Well 807

The rig will be released from Well 143 after running the tubing there and mobilized to Well location 807 where a 2,500 metre well is to be spudded targeting Cretaceous Carbonate and Jurassic sandstone.

The Total Depth of 2,500 metres is expected to be reached in November 2013.

Well 806

Work is progressing at Well 806 in anticipation of an early commencement of the 90 days testing at the three intervals, which have already displayed encouraging characteristics.

Deep Wells

Aryshagal 5

Aryshagal 5 is the deep well spudded in July 2013, which is to be drilled to a Total Depth of 4,700 metres targeting the Permian formation at 4,120 metres and the Carboniferous formation at 4,390 metres.

Roxi is pleased to announce that the first 800 metres of the well have been drilled and the well has been fitted with casing and cement to that depth without any significant problems. Drilling the remaining 3,900 metres continues, which the Roxi management expect to be at a faster pace, given the reduced dimensions of the well bore.

Investors are reminded that BNG has a turn-key contract to drill this well and would therefore not be subject to any cost overruns stemming from drilling delays which can result from difficulties associated with pre salt drilling in the region.

Comments

Clive Carver, Chairman said

“We are very pleased with the results to date from both the shallow and deep wells at our flagship BNG asset.  With each piece of positive drilling news the Roxi management teams confidence grows in the quality of the BNG asset and the value shareholders should derive from its exploitation.”