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Roxi announces spudding of shallow well 141

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Oilfield Technology,

BNG Contract Area

The BNG Contract Area is located in the west of Kazakhstan 40 km southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1561 km2 of which 1376 km2 has 3D seismic coverage acquired in 2009 and 2010. Roxi resumed full control of BNG Ltd LLP in 2011.

In January 2016, Roxi announced that the area of the Contract Area was extended with the addition of 140.6 km2 to the north-east of the current block. The extended BNG Contract Area now covers 1702km2.

Development activities have focused on both deep drilling in the Ayrshagyl area and shallow drilling in the Yelemes area.

BNG Shallow wells

BNG's shallow wells are located in the Yelemes portion of the BNG block. They extend over an area of 800 km2. and are focused on proving the extent of a number of promising horizons.

Roxi is currently producing in aggregate 616 bopd (332 net to Roxi) from 3 shallow wells.

For some time our belief has been that the shallow horizon produced from by wells 54 805 806 & 807 extends significantly further than the relatively small area in which they were drilled.

Well 143, which was drilled to a depth of 2750 m on the MJ-F structure located towards the North of South Yelemes field at BNG. Well 143, which has produced at a maximum rate of 815 bpd using a 7 mm choke, is 3000 m distant from these other wells and first indications from this well are that the shallow horizon does indeed extend over a significant area.

Shallow well 141

Seeking to replicate the success of Well 143 Roxi has announced that Shallow Well 141 has been spudded. The new well is located some 1150 m from Well 143 with a planned depth of 2450 m.

As with Well 143 the new well is initially targeting Jurassic Callovian sands at a depth of 2200 m with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1900 m.

The well is being drilled for a fixed cost of US$1.25 million.

Clive Carver, Chairman commented:

"We continue to place importance on developing the shallow portion of the BNG asset, in particular targeting structures where we have already enjoyed success. Income from these wells will be used in part to extend our deep drilling programme."

Adapted from a press release by Louise Mulhall

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