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BNG asset update

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Oilfield Technology,

Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, has further updated the market with news of progress at its BNG asset.

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 has a 58.41% interest in the BNG Contract Area.

Roxi have also confirmed that Deep Well 801 has been spudded as planned. The well is to be drilled to a total depth of 4700m targeting the Lower Carboniferous. The well is expected to reach total depth by mid April 2015. The well is being drilled on a turnkey basis by Sinopec, the Chinese multinational, at a fixed cost of US$11 million. Deep Well 801 is located approximately 8 km from Deep Well A5 and will be targeting the same structure as Deep Well A5 in the Lower Carboniferous.

Deep well A5 was drilled to a total depth of 4442m. Casing was set to a depth of 4077m and the core sampling revealed the existence of a gross oil-bearing interval of at least 105m from 4332m to at least 4437m.

Also as previously announced due to the high pressure in the well, the coil tubing equipment has become stuck at a depth of 2996m. This has delayed the commencement of the 30-day flow test.Work continues to remove the excess drilling fluids and stuck core-tubing equipment. Encouragingly, despite the blocked well, oil continues to flow to the surface under its own pressure.

Clive Carver, Chairman said, "It is always exciting to spud a new well, particularly a deep well. We look forward to working with Sinopec on this drill. As regards Deep Well A5 our plan is to work in a cost effective manner using the simpler and cheaper techniques available to us to clean up the well for testing rather than moving directly to the more expensive and time-consuming procedures. We will continue to update the market with progress as it occurs."

Adapted from press release by Joe Green

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