Roxi Hits Oil Pay at 2 Appraisal Wells in Kazakhstan
Roxi Petroleum has reported an appraisal drilling success in Kazakhstan.
Two new oil wells on the Galaz Contact Area
- NK Konus well NK3 encountered a total of 12m net oil pay in Arskum and Upper Jurassic sands
- NK Konus well NK4 has encountered a total of 14m oil stained upper Jurassic sandstone
- Oil quality of approximately 26 degrees API
- 5 well program to be completed by end 2008
- Trial production expected 2009
- 5 further wells planned to explore deeper horizons in 2009
- Potential reserves upgrade on NW Konus field after completion of current drilling program
Disposal of Munaily for $1 million, plus a potential further $2 million production royalty, dependent on production volume.
Rob Schoonbrood, Roxi CEO commented, "The discovery of oil at NW Konus signifies the beginning of the company's move to production and development from pure exploration. We look forward to upgrading our reserves levels once full testing has been completed.
It can also be seen as a total justification of the company's change in strategy to farm-out our assets - thereby adding significant value through immediate drilling.
Our initial farm outs, and the sale of Munaily, has assisted our short term funding. We are in negotiations regarding our longer term needs, and remain confident of securing a strategic source of funding for Roxi's long term development."