Roxi Petroleum Plc
07 May 2008
Roxi Petroleum Plc
('Roxi' or the 'Company')
Extension of Contract Territory
Introduction
The Directors of Roxi are pleased to announce that its 58% owned Kazakh
subsidiary, BNG Ltd. LLP has been awarded an extension to its existing BNG
Contract Area. Accordingly the BNG Contract area has increased by 9.8 per cent
of the total area of the contract territory to 1,561 km2.
Background
Roxi acquired its interest in the BNG Contract Area as part of the acquisition
of 59% of Eragon Petroleum plc ('Eragon') which was completed in early March
2008 (the 'Eragon Acquisition'). The BNG Contract Area initially covered an
area of approximately 1,422 km2, and is located approximately 40 km from the
Tengiz oilfield in the Pre-Caspian basin of West Kazakhstan. The BNG Contract
Area is considered by the Directors of Roxi to be highly prospective in both the
Jurassic and Triassic sandstones at depths of 2,500 - 3,500m and in the pre salt
Carboniferous sandstones and carbonates at depths of 4,000-5,000m. Exploration
in this area since the 1980's has resulted in the development of several
Jurassic discoveries in the acreage surrounding the BNG Contract Area. Within
the boundaries of the BNG Contract Area the owners of Eragon and the Directors
of Roxi identified open acreage which they considered to be an extension of the
exploration potential that existed under the original contract area.
BNG Contract Area - extension:
The extension to the original BNG Contract Area covers an area of 139 km2 and is
entirely within the original BNG Contract Area boundaries (the 'Extension'). In
the opinion of the Roxi Directors the awarding of the Extension will help to
consolidate the exploration strategy in the BNG Contract Area and increase the
potential for early exploration success, the addition of reserves and early test
production.
Rob Schoonbrood, Roxi Chief Executive Officer commented:
'I am delighted that Roxi has been awarded the extension to the BNG Contract
Area. We feel that the new territory is particularly prospective and
complementary to the current portfolio,
With the completion of the Eragon Acquisition, Roxi is now in an excellent
position to step up the development of this asset and achieve significant
results in the near future; hitting our targets of successful exploration and
development leading to production and cash flow.'
Qualified person
Duncan McDougall, Technical Director of Roxi Petroleum and a Fellow in the
Geological Society, London, has reviewed and approved the technical disclosure
in this announcement. He holds a BSc in Geology and has 25 years international
experience of exploration, appraisal, and development of oilfields in a variety
of environments.
Enquiries:
Roxi Petroleum plc
Rob Schoonbrood, CEO +7 727 244 0920
David Barker, COO +7 727 244 0920
College Hill (Financial PR)
Paddy Blewer +44 (0) 20 7457 2020
Nick Elwes +44 (0) 20 7457 2020
WH Ireland (NOMAD and broker)
James Joyce/David Porter +44 (0) 20 7220 1666
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