logo-loader
viewCaspian Sunrise

Roxi Petroleum secures two year extension to BNG contract

bayterek_4e24004aa8f60.jpg

Kazakhstan focused oil firm Roxi Petroleum (LON:RXP) has secured regulatory approval for the extension of its subsurface user contract over the BNG area, which now runs to June 2013.

The extension, which is the first of the two provided by the terms of the BNG contract, obliges Roxi to drill two exploration wells on the contract area to depths of 2,500 and 4,500 metres.

Traders cheered the news, sending shares in Roxi up 6.5 percent in early deals in London.

“We are pleased to receive the anticipated extension to the BNG contract from the Ministry, which allows us to prepare for what should be an exciting two years exploring and appraising,” said chief executive of Roxi Petroleum David Wilkes.

A recent independent audit has estimated the BNG area’s resource potential at 900 million barrels of oil with best estimate prospective resources of 500 million barrels.

A total of 30 prospects and a further seven leads have been identified by Roxi within the current area so far. These prospects range in size from 3 to more than 80 million barrels of oil.

Roxi is currently ranking the identified prospects to schedule a drilling programme it for 2012/13.

Work is also under way to prepare South Yelemes wells 54 and 805 for pilot production in the final quarter of the year. Production requires approval from the Kazakh authorities, which is currently sought by Roxi.

Shares in Roxi climbed 0.25 pence to trade at 4.125 pence this morning. The company currently has a market cap of £17.35 million.

Quick facts: Caspian Sunrise

Price: 8.5 GBX

AIM:CASP
Market: AIM
Market Cap: £160.03 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Things coming together nicely in Greenland, says Bluejay Mining's CEO

Rod McIllree, Bluejay Mining PLC’s (LON:JAY) chief executive, tells Proactive that all three of its projects in Greenland are shaping up nicely with plenty of interest from mining giants. Dundas is the flagship and here a bulk sample of mineral sands has been shipped to a Rio Tinto facility...

1 day, 9 hours ago

2 min read