BNG's Pilot Production Project for South Yelemes Approved

Roxi announced the following update for BNG Ltd (Roxi interest 23.41%):

  • South Yelemes Pilot Production Consent Update
  • Amendment to Sub-Soil User Contract minimum work program

BNG Ltd LLP has received notification from the Central Development Committee and the Committee of Geology and Sub-soil Use (Ministry of Industry and New Technologies) to approve the Pilot Production Project for South Yelemes field for a three year period, subject to receipt of the extension of the of the Sub Soil User Contract from the Ministry of Oil and Gas. BNG has applied for the first extension of the Contract in January and the Company anticipates receiving confirmation in the second quarter 2011.

The pilot production will start after receipt of all emissions and gas flaring permits for the Pilot Development scheme, the preparations for which are in progress with the appropriate official and government agencies.

BNG has also been notified of the successful amendment of the contractual minimum work program for the period June 2007 to June 2011. The amendment changes the historical drilling commitment from 13 wells to be drilled to a depth of 1000m to, 5 wells to be drilled to 2700m. The net drilled meter-age in the amendment is approximately the same however, the work program obligation is now in line with BNG's operational program and will allow the company to comply with its contractual obligations. The company is currently drilling its third well (135), which is currently operating at the intermediate casing point at 1800m.