Roxi Petroleum granted Kazakh extension

Feb 22. Interactive Investor

Roxi Petroleum granted Kazakh extensionJunior gas explorer Roxi Petroleum (RXP) has been granted a two-year extension to the Subsoil User Contract in Kazakhstan, paving the way for pilot production.

The extension, granted by the country’s Ministry of Oil and Gas to operator Galaz and Company, covers the NW Konys Contract Area in the Turgai basin, and has set the foundation for the block’s production forecasts through 2013.

Chief executive David Wilkes said: “We are pleased to receive this extension to the Galaz contract. We are now approaching a significant step change in the profile of Roxi as we successfully look to move our assets from the exploration phase into production.”

Kazakhstan-focused Roxi said the extension period will allow continued appraisal of NW Konys field as well as the exploration of the North Konys structure.

The company estimates that Galaz – which Roxi acquired in 2008 – will receive all permits and approvals to start production in the second half of this year. Once all the production permits have been received, production will begin immediately from the available wells, which have individual facilities, it said.

Tendering for camp, pilot production facilities, and the first stage, development drilling campaign will get underway after completion of the extension award which is due over the next two months, Roxi added.

http://www.iii.co.uk/articles/14417/roxi-petroleum-granted-kazakh-extension

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