Content up to date to 28/2/10 below, but this will not be updated.
Overview
Roxi Petroleum's exciting Ravninnoe (pronounced Rav-nina) contract area lies in the Pre-Caspian Basin of Kazakhstan, 100km NE of Tengiz and some 30km away from the Opornaya supply base. The Exploration License expired in May 2009, but an extension over the acreage to May 2011 has been granted. Roxi holds a 30% interest in this license block after a farmout of a portion of its interest to Canamens.
Prospects
Six wells have been drilled on this area before Roxi secured the block. A number of them are still seeping oil to surface and showed gross oil columns in the range of 57-127m, apparently in the mid-Carboniferous.
Roxi have re-entered an old well, but the casing was parted so the well was suspended. However, 130km2 of 3-D seismic have been shot over the acreage.
A new well started drilling on 30 October, Well#20, which is essentially an offset re-drill of the old well #8. At the 2009 AGM it was stated that the old Well#8 had flowed oil at up to 6-800 barrels of oil per day (bopd). From the AGM presentation, it appears as though this well is targeting prospects in the middle and lower Carboniferous to a total depth of 3,800m. At the 17 November GM it was stated that the primary target is at 3,200m, but if they continued to see oil shows at 3,500m they would "keep going". Moreover, this well is not in the optimal location to test the lower-Carboniferous target, so it is unlikely they will drill as far as 3,800m.
It was announced on 14 January 2010 (see this post) that Well #20 was drilled to a total depth of 3,455m and encountered a gross hydrocarbon column of some 30m. The well will now be tested across several intervals. It was further announced on 3 February that the hydrocarons encountered were oil at high pressure and no H2S issues had been identified. It has been subsequently announced that testing operations on Well #20 should be complete during March 2010.
Investors can look forward to the results from this well with some anticipation, but should not overlook the fact that the company is planning to re-map the as yet un-drilled pre-salt (presumably Devonian) horizons that may yield further results. A second appraisal well might be expected to be drilled, presumably targeting the lower-Carboniferous depending upon the results of the first well.
In their December 2009 broker note, Matrix helpfully delineated the prospects on Ravninnoe by describing the P50 and P10 resources estimates for the mid-Carboniferous structure targeted by Well #20 as 27mmbo and 58mmbo respectively. They also suggest the P50 and P10 resources of the lower-Carboniferous target are 28mmbo and 49mmbo respectively and also indicate that this structure has also been drilled before in the Soviet days and therefore attribute a 50% chance of success. They say Roxi is also working on the exploration potential of the deeper Devonian target.
Moreover Matrix also make a passing reference to Well #20 having been designed to test a number of seismically mapped Jurassic and Cretaceous targets - this looks like a new disclosure.
Further disclosures have been made in an Envoi note about the Ravninnoe field.
In their December 2009 broker note, Matrix helpfully delineated the prospects on Ravninnoe by describing the P50 and P10 resources estimates for the mid-Carboniferous structure targeted by Well #20 as 27mmbo and 58mmbo respectively. They also suggest the P50 and P10 resources of the lower-Carboniferous target are 28mmbo and 49mmbo respectively and also indicate that this structure has also been drilled before in the Soviet days and therefore attribute a 50% chance of success. They say Roxi is also working on the exploration potential of the deeper Devonian target.
Moreover Matrix also make a passing reference to Well #20 having been designed to test a number of seismically mapped Jurassic and Cretaceous targets - this looks like a new disclosure.
Further disclosures have been made in an Envoi note about the Ravninnoe field.
Reserves
Currently, 15.5 millions of barrels of oil (mmbo) gross 2C reserves are granted to the field. However, some of the original owners of the Ravninnoe field have put their share of the asset up for sale and the Envoi note accompanying that sale suggests Pmean recoverable reserves of some 53mmbo from a combination of the mid and lower Carboniferous stratigraphic and structural traps. This does not include any potential upside from deeper Devonian targets.
Finance
Canamens have farmed-in to acquire up to 32.5% of the field for a total consideration of up to $22m. The estimated cost of each well is ~$8.5m, so Roxi are funded for the entire work commitment of the block, some $18m up until 2011.
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