Roxi news: licence extension and operational update

Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, has announced news of a licence extension and of operational progress at its Galaz asset.

Galaz

The Galaz block is located in the Kyzylorda Oblast in central Kazakhstan. The contract area was extended on 10 January 2011 to 179 km² and now includes significant exploration upside on the east side of the Karatau fault system, as well as the NW Konys development.

The operator is LGI, the Korean multi-national, which invested US$ 34.4 million by way of loans into the project and paid a further US$ 15.6 million in return for 40% of the asset. A total of 30 km² 3D seismic has been acquired and processed.

Roxi has a 34.44 interest in the Galaz contract area.

Licence

Roxi announced the extension of the licence at the Galaz contract area for a further two-year period to 14 May 2016. The licence has been extended on the current pilot production basis, although at the request of Galaz LLP may be converted to a full production licence.

Well NK-31

Roxi Well NK-31 has been spudded and is to be drilled to a total depth of 2500 m targeting the Middle Jurassic. The well is expected to reach total depth by the end of July 2014.

Drilling has reached a depth of 2350 m without incident. Core samples taken between 2070 and 2079 m in the Karagansaisky horizon contain an interlayering of argillite and conglomerates.

High gas shows were detected when drilling at the depth of 2283 m (Doshan Suite). Core samples have been taken between 2283 and 2292 m and preliminary, analysis shows the core consists of sandstones.

A further announcement on this well will be made in due course when the results of further analysis are available.

Comments

Clive Carver, Roxi Chairman, commented: "Although Roxi investor focus in recent months has been at our BNG asset, based on our drilling activities at Galaz we are now confident Galaz is also a valuable asset and one we wish to develop further."

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/exploration/11072014/roxi_news_update_on_licence_extension_and_drilling_operations_217/