Roxi Petroleum Announces Operational Update

On 10 May Roxi Petroleum (LSE:RXP, AIM:RXP, RXP.L) announced an operational update covering the BNG, Ravninnoe and Galaz blocks.

BNG

Well 805 is drilling ahead towards the target depth of 2,500m after setting 9 5/8 inch casing at 803m .  The 16 April RNS said that well 805 spudded on 14 April, with an expected drill time of some 30 days.  It therefore appears that there have been some delays in drilling, and we can expect to wait for some time longer for the announcement of the well result.

On a brighter note, the extra 3-D seismic over the northern part of the block has been completed and priority is being given to processing and interpreting the data over the Northern Yelemes area.  Seismic acquisition over the southern area of the block, presumably covering the Saztobe area, has commenced.

Ravninnoe

A period of 90-day production testing has begun on Well #20, and it seems that acid stimulation will also be part of the test programme.

Galaz

It seems that the initial attempts to perforate the NK22 well have failed due to water ingress caused by a poor cement bond.  Plans are being prepared to conduct a cement squeeze and re-perforation of the well.  However, Galaz Energy BV (Galaz), will have to wait for approval to carry out these operations fromthe new operator, LG International (LGI).  It seems LGI will be awarded the operatorship of the block as part of the deal announced on 29 April.  There was no word on the tortuous Kazakh approval process, nor on the start of pilot production.


Overall this is a slightly disappointing RNS with delays apparent in all three assets.  Let us hope the CPR that was promised over the BNG block at the Oil Barrel conference will be released soon.