viewCaspian Sunrise

Roxi Petroleum shares fall after revealing problem with deep Kazakh well

Roxi failed to perforate the targeted section of reservoir in the A6 well and it must now complete work on another well before it can prepare for flow testing.

Oil workers on a well
Chairman Clive Carter said the delay was frustrating but its unlikely to have any material impact.

Roxi Petroleum Plc (LON:RXP) has revealed a failure in its efforts to bring the Deep Well A6 to production.

The A6 well, part of the BNG project in Kazakhstan, was drilled to a depth of 4,528 metres and was believed to have a 130 metres of oil bearing intervals.

A 54 metre interval was supposed to be opened up, however, the company says early indications suggest that the targeted area will need to be re-perforated because the original perforations failed.

“The need to repeat the perforation work at Deep Well A6 is frustrating but the board believe it is unlikely to have any material impact on the final outcome at the well, which we believe remains very encouraging," said Clive Carter, Roxi executive chairman.

But, the necessary equipment for re-perforation has now been moved to the location of Deep Well A5 - and as such the work of A6 is not expected until after the A5 programme is complete.

At A5 the company is to drill a side-track to an existing well.

Roxi noted that the rig and equipment has been on site for some time and the preparatory work is underway.

Elsewhere at BNG, the company noted that a number of areas of interest have been identified in a newly drilled well (Shallow Well 142) on the MJF structure.

Two existing wells on MJF, wells 141 and 143, are presently producing at rates of 640 and 298 barrels of oil per day, the company said, and as such the aggregate production for the BNG project as whole currently amounts to 1,295 bopd.

Roxi notes that Well 142 is a material step-out, some 1.6 kilometres, to the north-east and therefore it has potential to confirm a significantly larger scale for the shallow MJF structure.

Carter added: “The recent drilling successes at 141 and potentially at 142 are further indications of the potential high value of the MJF structure.”

Quick facts: Caspian Sunrise

Price: 8.75 GBX

Market: AIM
Market Cap: £164.73 m

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