logo-loader
viewCaspian Sunrise

Roxi Petroleum prepares for “all important” flow test for deep oil discovery

oil_drill_rig_onshore350_543e324775fd9.jpg

Roxi Petroleum (LON:RXP) is preparing for important well tests to shed more light on its deep oil discovery in Kazakhstan.

The company today revealed that oil has flowed from the A5 discovery well only for short periods, due to issues relating to pressure. These short periods were insufficient to obtain a reliable measurement to quantify possible oil flows, it added.

Oil recovered so far has been described as “good quality light oil” that is brown in colour with a blue hue, without hydrogen sulphide.

Preparation work for well testing continues as planned, Roxi said.

A 30 day well test will begin once drilling fluids have been fully cleaned from the well and any necessary new equipment has been installed.

"The preliminary view at our deep well A5 is that the reservoir is oil bearing and the quality of the oil is good,” said chairman Clive Carver.

“The next step remains to assess how much recoverable oil we have."

Roxi, meanwhile, also updated investors on the ongoing testing in the BNG shallow wells where four wells have produced oil at rates that the company considers commercial. Another well, however, flowed water with an oil ‘sheen’, though other intervals in the well will also be tested.

In the Galaz area, the NK-31 has now been drilled and has not detected oil, though as previously reported there were gas shows.

On AIM Roxi’s shares fell 3.6p or 20.2% in early deals to trade at 14.25p each.

Quick facts: Caspian Sunrise

Price: 9.8 GBX

AIM:CASP
Market: AIM
Market Cap: £184.5 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

Nouveau Monde Graphite 'developing the largest graphite operation in the...

Nouveau Monde Graphite's (CVE:NOU-OTCQX:NMGRF) founder and president Eric Desaulniers caught up with Proactive London's Andrew Scott as the firm focuses on the start next year of commercial scale mine and concentrator construction at their project in Canada. ''It's a story of a great...

2 hours, 23 minutes ago

2 min read