Roxi Petroleum plc – BNG operational update

Introduction

Roxi, the Central Asian oil and gas company, with a focus on Kazakhstan, is pleased to update the market with news from its BNG Contract Area.

Background

Roxi has a 58.41% interest in the BNG Contract Area, which is located in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,702 square kilometres.

The block has both shallow and deep areas of interest.

Deep Well A6

Well A6 was drilled to a total depth of 4,528 meters, completed and then perforated within a 54-meter interval from a depth of 4,450 meters. The early indications are that the perforation will need to be re-performed to enable a flow test to be conducted as much of the targeted area for the original perforation remains unperforated.

However, as the drilling equipment and the drilling fluid required for the re-perforation has been moved to A5, the re-perforation work at Deep Well A6 is planned to commence following the completion of the side track planned at Deep Well A5.

As previously announced potential gross oil-bearing intervals of approximately 130 meters have been detected in Deep Well A6. While an assessment of the net pay are yet to be determined Roxi management continue to expect a positive outcome at this well and on this structure.

Deep Well A5

As previously announced the intention at Deep Well A5 has been to side-track the well from a depth of 3,800 to 4,000 meters. The rig for the work has been on site for some time. Drilling pipes and drilling fluid previously used at deep Well A6 have been transferred to the A5 location. The preparatory work for the side-track is underway and further announcements will be made in due course.

MJF structure

Well 142

Since our last update, Shallow Well 142 has reached its total depth of 2,450 meters and testing has commenced. As in wells 141 and 143 based on the mud and wireline logging data several intervals of interest have been identified for testing.

The two wells drilled to date on the MJF structure, 143 and 141, are producing at the rates of 640 bopd and 498 bopd. Aggregate gross production from BNG, excluding well 142, is now 1,295 bopd.

Well 142 is a material step out well, located 1.6 km to the north east of well 143 and therefore it has potential to confirm a significantly larger scale for the MJF structure.

Clive Carver, Executive Chairman said

“The recent drilling successes at 141 and potentially at 142 are further indications of the potential high value of the MJF structure.

The need to repeat the perforation work at Deep Well A6 is frustrating but the board believe it is unlikely to have any material impact on the final outcome at the well, which we believe remains very encouraging.”