Business
Farm Out and Operational Upda
Farm Out and Operational Upda.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n RNS Number : 8379L Roxi Petroleum Plc 19 January 2009 \n \nRoxi Petroleum Plc \n('Roxi' or the 'Company')\n\nFarm Out and Operational Update\n\nRoxi Petroleum plc (AIM; RXP) is pleased to announce that the Company has agreed to farm-out an interest in the BNG Contract Area to Canamens. The agreement is conditional, inter-alia, on regulatory approval by the Kazakh authorities and the approval by Roxi's shareholders. Following the Canamens farm-in to Ravninnoe Contract Area in 2008, this agreement aligns the Company and the Canamens group in a long term strategic partnership to develop two of the Company's core assets, with the goal of reserves growth and early production. \nRoxi also announces further appraisal success on the NW Konus field, within the Galaz Contract Area in the Kyzylorda Oblast, Central Kazakhstan. The last two wells in the 2008 drilling programme, NK5 and NK6, have encountered encouraging net oil pay intervals in Arskum and Upper Jurassic sandstone, from wireline logging evaluation.\n\nHighlights\n\n\nAgreement signed with Canamens to farm-out up to 35% of BNG Contract Area, in which the Company has an indirect 58.4% interest, which would become an interest of 37.96% following completion of the transaction.\n\n\nUS$5m of short term funding available to Roxi in January 2009\n\n\nUp to a maximum of US$50m funding for BNG work programmes to be paid by Canamens:\n\n\nAssuming the final stages of the deal are completed, this will fund Roxi's BNG work programme commitments for 2009 and 2010 \n\n\nUp to US$27m funding of 2009 BNG work programme including the drilling of multiple wells\n\n\nUp to US$23m funding of 2010 BNG work programme including the drilling of multiple wells\n\n\n\n\n\n\n\nAppraisal success on the Galaz Contact Area\n\n\nNK Konus well NK5 encountered a total of 20m net oil pay in Arskum and Upper Jurassic sandstone\n\n\nNK Konus well NK6 encountered a total of 29m net oil pay in Arskum and Upper Jurassic sandstone\n\n\n2008 five well programme now completed \n\n\nReserves upgrade and trial production planned in 2009\n\n\n\n\n\nRob Schoonbrood, Roxi CEO commented:\n'We are delighted to work with Canamens to develop the highly prospective BNG assets. Both companies have demonstrated their ability to work together to get these deals done, and I...