Roxi Updates on License Extension, Operations at Galaz Block in Kazakhstan
Roxi Petroleum plc, the Central Asian oil and gas company with a focus on Kazakhstan, provided an update Friday with news of a license extension and of operational progress at its Galaz asset in central Kazakhstan.
The Galaz block is located in the Kyzylorda Oblast in central Kazakhstan. The Contract Area was extended Jan. 10, 2011 to 69.1 square miles (179 square kilometers) and now includes significant exploration upside on the east side of the Karatau fault system, as well as the NW Konys development.
The operator is LGI, the Korean multi-national, which invested $34.4 million by way of loans into the project and paid a further $15.6 million in return for 40 percent of the asset. A total of 11.5 square miles (30 square kilometers) 3D seismic has been acquired and processed.
Roxi has a 34.44 percent interest in the Galaz Contract Area.
Roxi is pleased to announce the extension of the license at the Galaz Contract Area for a further two-year period to May 14, 2016. The license has been extended on the current pilot production basis, although at the request of Galaz LLP may be converted to a full production license.
As previously announced Roxi Well NK-31 has been spudded and is to be drilled to a total depth of 8,202 feet (2,500 meters) targeting the Middle Jurassic. The well is expected to reach Total Depth by the end of July 2014. It is being drilled on the main Contract Area.
Drilling has reached a depth of 7,710 feet (2,350 meters) without incident. Core samples taken between 6,791 and 6,820 feet (2,070 and 2,079 meters) in the Karagansaisky horizon contain an interlayering of argillite and conglomerates.
High gas shows were detected when drilling at the depth of 7,490 feet or 2,283 meters (Doshan Suite). Core samples have been taken between 7,490 and 7,519 feet (2,283 and 2,292 meters) and preliminary, analysis shows the core consists of sandstones.
A further announcement on this well will be made in due course when the results of further analysis are available.
Clive Carver, chairman commented:
"Although Roxi investor focus in recent months has been at our BNG asset, based on our drilling activities at Galaz we are now confident Galaz is also a valuable asset and one we wish to develop further."
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