Roxi Petroleum announces BNG Farm-out
Tuesday, Mar 20, 2012Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to announce that Bakmura LLP ("Bakmura"), a subsidiary of the Korean National Oil Corporation ("KNOC"), has agreed to pay an initial cash consideration of $5 million and to invest a further $25 million in the BNG Contract Area work programme in return for a 35 per cent interest in the BNG Contract Area license.
Roxi acquired a 58.41 per cent interest in the BNG Contract area in 2008 as part of its acquisition of a 59 per cent interest in Eragon PLC. The license period was extended in 2011 until June 2013, after which further license extensions can be applied for subject to compliance with the existing work programme.
The block covers an area of 1,561 square kilometres and lies in the South Emba Sub-basin 40 kilometres southeast of the Tengiz field. 3D seismic data has been acquired covering 1,376 km2.
In June 2011, Gafney Cline & Associates ("GCA") published an independent estimation of resources based on the Company's preliminary interpretation of approximately 1,400 square kilometres of 3D seismic data, which had been acquired in 2009 and 2010.
The Company identified 30 prospects and a further 7 leads within the BNG Contract Area. The prospects ranged in size from 3 to over 80 million barrels of oil ("mmbo"), with a total aggregate gross resource potential of over 500 mmbo of "Best Estimate Prospective Resources".
The geological chance of success, or risk, assigned by GCA to the majority of these prospects ranged from around 20% to over 80% in one or two cases. The less well defined leads varied from 6 to over 130 mmbo in size, having an aggregate potential of a further 400 mmbo, and a chance of success assigned by GCA of less than 15%.
In addition to these prospective resources, a further 13 mmbo estimated for the South Yelemes field were classified by GCA as Contingent Resources.
GCA reported that the Yelemes field development was contingent on further testing of the Neocomian dolomite reservoir, extension of the Sub-Surface User Contract ("SSUC") and subsequent extension of Pilot Production consents.
The total Risked Most Likely Prospective and Contingent Resources on the BNG block was estimated to be 215 mmbo.
Earlier this month Roxi announced that it had drilled Well 136 to a depth of 3,008 metres and encountered oil between 2,442 and 3,008 metres.
Pilot production from the BNG Contract Area is expected to commence later this year.
Source: Roxi Petroleum
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