Roxi Petroleum Completes Acquisition of Two Kazakhstan Fields
Roxi Petroleum says it has completed the purchase of two of the three Contract Areas in Kazakhstan, Ravninnoe and Beibars. The company has also completed registration with all relevant regulatory bodies, in relation to the above transactions, taking control of the two companies Ravninnoe Oil LLP and Beibars Munai LLP and Expects to make a final decision on the acquisition of the third contract area, North Karamandybas within the next quarter. Roxi has identified and is evaluating six further potential asset acquisitions in Kazakhstan.
Ravninnoe Contract Area
The Ravninnoe Contract Area covers 121 square kilometers and is located approximately 100 kilometers north east of the Tengiz field in the South Emba sub – basin of the pre – Caspian basin, in the Atyrau Oblast of West Kazakhstan.
With the completion of the transaction, project evaluation and design work is now underway for the re-entry of up to four existing wells on the field. The design work is expected to be completed before the end of August. The Company has issued a tender for well workover and re-entry services. The contract should be awarded in August, with the rig mobilisation to follow shortly. The Company has also issued a tender for seismic operations with several local providers.
The Company continues to test well #8 with a specialised swabbing unit. This well was re-entered prior to Roxi's listing.
Beibars Contract Area
This contract area covers approximately 167 square kilometers and is situated on the coastline of the Caspian Sea approximately 40 kilometers south of the port of Aktau.
Roxi continues its technical analysis of the Contract Area and has recently acquired additional historical data. This data will feed into a seismic survey of the Area, which is currently being designed. A tender for this program is being prepared for submission in the next month.
North Karamandybas Contract Area
This area covers approximately 7.2 square kilometers and is situated in the South Mangishlak Basin, Karakigansky Rayon of the Mangistau Oblast approximately 120 km east of the port of Aktau.
Progress is continuing to be made on the transaction. Roxi's commercial partner has been successful in the first two stages of legal action. The third and final stage is ongoing.
Roxi expects to make a final decision regarding the purchase in the near future.
As part of its stated strategy on admission to AIM, Roxi is looking for additional attractive prospects and potential acquisitions. The Company has begun evaluating six additional prospects in Kazakhstan, and remains vigilant for any further appropriate opportunities to grow its portfolio.
In the fourth Quarter 2007, Roxi will move into a newly renovated office in Almaty. Roxi has strengthened the team, employing an experienced blend of both local and international professionals in the technical, legal and financial arenas who will be pivotal to the Company's operational success going forward.
Rob Schoonbrood, Chief Executive Officer, said:
"We have created a solid platform for further future growth. Our exciting strategy of future acquisitions will drive the company forward, creating further value for our shareholders.
After our successful launch , Roxi has made excellent progress. We are delighted to have completed the Ravninnoe and Beibars transactions, and expect to make the final decision on our purchase of 50% of North Karamandybas shortly.
We have continued to strengthen our team and infrastructure; whilst operationally our forward programs are being developed with tenders being submitted to contactors to carry out the work."
Roxi Petroleum was admitted to AIM in May of 2007 and was created to acquire controlling interests in and develop oil and gas assets in Central Asia particularly focusing on Kazakhstan.