Business
Licence Renewal and Operational update
Licence Renewal and Operational update.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n \nRNS Number : 4679J Roxi Petroleum Plc 17 July 2013 \n \n\n \n \nRoxi Petroleum plc\n(\"Roxi\" or \"the Company\")\n \nLicence Renewal and Operational update\n \nRoxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to provide an operational update on its flagship BNG asset.\n \nLicence renewal\n \nRoxi is pleased to announce that the BNG licence has been successfully renewed for a further period of two years ending on June 6, 2015 during which significant exploration activity is planned that is not expected to require additional shareholder funding.\n \nDeep Wells\n \nAs previously announced the focus of the 2013 drilling campaign at BNG are the deep wells planned for the Aryshagal region within the BNG Contract Area. The first of these wells to be drilled to a depth of 4,700 meters has now been spudded and is expected to take a further 90 days to reach its total depth.\n \nThis well will target the Permian formation at 4,120 metres and the Carboniferous formation at 4,390 metres and if successful could fundamentally transform the longer term economic value of the BNG asset and the Roxi Group, which retains a 58.41 per cent interest in the BNG Contract Area.\n \nBNG has engaged a drilling company on a turn-key basis and Roxi will therefore not be exposed to cost overruns which can result from difficulties associated with pre salt drilling in the region.\n \nUp to four further deep wells are planned in 2013 and 2014, including three as part of the agreed work programme under the terms of the renewed licence, at an estimated aggregate cost of $35 million. The board believes it will not need to seek additional shareholder funding for this work. The funding for this exploration is expected to be met using the funds secured under the $40m equity investment announced in January 2013 together with the proceeds of planned asset disposals within the Company's portfolio that it is currently pursuing. Further details of any asset disposals will be provided in due course.\n \nExisting production at BNG\n \nProduction from Wells 54 and 805 is running at the rate of some 200 bopd (117 bopd net to Roxi), and production from 806 is expected later in 2013 following the receipt of the permits required for the 90 day testing. ...