Roxi Petroleum (LON:RXP) surged this morning after reporting oil flow rates from the NK8 well on the Galaz field in Kazakhstan.
The NK8 well has reached its total depth and has been tested, flowing at a rate of 161 barrels of oil per day (bopd) using a 5mm choke, 197 bopd on a 6mm choke and 251 bopd on a 7mm choke.
The company now plans to test a different interval.
Roxi noted that it has previously announced ongoing production of 156 bopd from the NK6 well and test production range to up to 620 bopd from the NK7 well using a 7mm choke.
NK7 is currently producing 180-190 bopd using a 5mm choke.
Aggregate gross production from the three wells is expected to reach around 500 bopd.
“The results from NK8 when taken together with test production from NK6 and NK7 will mean production from Galaz at around the 500 bopd level,” said chairman of Roxi Clive Carver.
“Production at these level at Galaz provides a strong underpinning of the Company's valuation ahead of the exiting deep drilling campaign at BNG, which upon receipt of the required regulatory approvals, is scheduled to commence in the autumn.”
Shares in Roxi jumped 11.5 percent to 3.35 pence by 9:25am, valuing the group at £20.4 million.