Business
Extension of Contract
Extension of Contract.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n Roxi Petroleum Plc\n07 May 2008\n\n\nRoxi Petroleum Plc\n('Roxi' or the 'Company')\n\n\nExtension of Contract Territory\n\n\nIntroduction\n\n\nThe Directors of Roxi are pleased to announce that its 58% owned Kazakh\nsubsidiary, BNG Ltd. LLP has been awarded an extension to its existing BNG\nContract Area. Accordingly the BNG Contract area has increased by 9.8 per cent\nof the total area of the contract territory to 1,561 km2.\n\n\nBackground\n\n\nRoxi acquired its interest in the BNG Contract Area as part of the acquisition\nof 59% of Eragon Petroleum plc ('Eragon') which was completed in early March\n2008 (the 'Eragon Acquisition'). The BNG Contract Area initially covered an\narea of approximately 1,422 km2, and is located approximately 40 km from the\nTengiz oilfield in the Pre-Caspian basin of West Kazakhstan. The BNG Contract\nArea is considered by the Directors of Roxi to be highly prospective in both the\nJurassic and Triassic sandstones at depths of 2,500 - 3,500m and in the pre salt\nCarboniferous sandstones and carbonates at depths of 4,000-5,000m. Exploration\nin this area since the 1980's has resulted in the development of several\nJurassic discoveries in the acreage surrounding the BNG Contract Area. Within\nthe boundaries of the BNG Contract Area the owners of Eragon and the Directors\nof Roxi identified open acreage which they considered to be an extension of the\nexploration potential that existed under the original contract area.\n\n\n\nBNG Contract Area - extension:\n\n\n\nThe extension to the original BNG Contract Area covers an area of 139 km2 and is\nentirely within the original BNG Contract Area boundaries (the 'Extension'). In\nthe opinion of the Roxi Directors the awarding of the Extension will help to\nconsolidate the exploration strategy in the BNG Contract Area and increase the\npotential for early exploration success, the addition of reserves and early test\nproduction.\n\n\n\nRob Schoonbrood, Roxi Chief Executive Officer commented:\n\n\n\n'I am delighted that Roxi has been awarded the extension to the BNG Contract\nArea. We feel that the new territory is particularly prospective and\ncomplementary to the current portfolio,\n\n\n\nWith the completion of the Eragon Acquisition, Roxi is now in an excellent\nposition to step up the development of this asset and achieve significant\nresults in the near ...