Business
Extension to the BNG Contract Area
Extension to the BNG Contract Area.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n \nRNS Number : 5826M Roxi Petroleum Plc 21 January 2016 \n\nRoxi Petroleum PLC\n \n(\"Roxi\" or the \"Company\")\n \nExtension to the BNG Contract Area\n \nRoxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to update the market with news of a 140.6 sq kilometers extension to the BNG Contract Area.\n \nExisting BNG Contract Area\n \nBackground \n \nThe BNG Contract Area is located in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometers of which 1,376 square kilometers has 3D seismic coverage acquired in 2009 and 2010. \n \nRoxi has a 58.41% interest in the BNG Contract Area via its 59% holding of Eragon Petroleum Limited.\n \nExisting Licence\nIn June 2015, the BNG licence was successfully renewed for a further three- year period to 7 June 2018. \n \nThe main focus of activity during the period of the renewed licence is to prove up the greatest amount of reserves consistent with avoiding unnecessary dilution to Roxi shareholders (the \"Estimation Phase\"). \n \nDuring the Estimation Phase oil produced will be sold at domestic Kazakh prices. Thereafter, subject to the findings of the Estimation Phase, Roxi intends to seek a full production licence at BNG, which will allow oil produced to be sold at international prices. \n \nOur development approach and progress to date\nThe BNG Contract Area has both shallow and deep prospects, both of which Roxi is actively developing. \n \nProduction from our 5 operational shallow wells is currently at the rate of 1065 barrels of oil per day (\"bopd\") (622 net to Roxi).\n \n \nExtension Area\n \nThe Kazakh regulatory authorities have granted BNG an extension to the BNG Contract Area of some 140.6 sq km to the north-east of the current block. \n \nThe price for the extension is $2 million and has been paid by Roxi.\n \nDevelopment approach to the Extension Area\n \nRoxi intends to acquire 3D seismic data on the new territory before finalising its drilling plans. Of particular interest is the deep formation currently being explored by Deep Wells A5, 801 & A6, which the Company believes extends into the new extension area.\n \nBNG work programme\n \nRoxi has also s...