Roxi Petroleum (RXP) Announces Results from Ravninnoe Well #20

Today, Roxi Petroleum (AIM:RXP) has announced the first results from Well #20 drilled on the Ravninnoe field.

The well has been drilled to a total depth of some 3,455m. Wireline logs indicate the presence of a gross hydrocarbon column of some 30m and higher than expected pressure. Roxi have released the Parker drilling rig and are mobilising a workover rig to test multiple reservoir intervals.

From the well design included in the AGM presentation the original target depth was some 3,800m, however at the GM in November, it was stated the target depth was some 3,500m. It is not clear why they stopped drilling earlier than anticipated. Moreover, the gross hydrocarbon column is somewhat smaller than the gross oil column heights published from the historic wells (discussed here) where the range was 57-127m. So, whilst it is no doubt good news that hydrocarbons have been encountered, it is a little disappointing that this well, drilled closer to the mapped crest of the structure apparently has a smaller hydrocarbon column. However, this may be explained by the Envoi note (p7) that describes Ravninnoe as "an anticline sheared off at the top by an unconformable salt layer acting as the top seal for the reservoir".

We shall have to wait and see the results of the testing programme to see if the field is commercial.