Roxi kicks off next Kazakh drilling campaign

Nov 01. Interactive Investor

By Fiona Bond

Roxi kicks off next Kazakh drilling campaignKazakhstan-focused oil and gas explorer Roxi Petroleum (RXP) has kicked off its next drilling campaign with the spudding of the NK-9 well.

The well is expected to reach a total depth of 1,500 metres to appraise the discovery of Arskum formation in the south channel of the Galaz block.

Drilling operations, which are being coordinated by operating partners LGI, are expected to take around one month.

NK-9 marks the first of three wells expected to be drilled across the AIM-listed group’s assets before the end of the year and marks the start of the next phase of operational activity for the company.

Chief executive David Wilkes said: “I am delighted that after many months of preparation and dealing with the company’s finances, we are able to commence drilling on what we believe to be a promising asset.”

This announcement comes just two weeks after Roxi cancelled the sale of a 58.41% interest in Munaily to BT Corporation.

The company said that despite “the best efforts of all concerned”, the sale – first announced in December 2008 – was not possible and it had agreed to repay the $0.5 million initial purchase consideration, together with a sum of $1.2 million (c?753,000) in respect of work performed at Munaily, to BT Corporation.

At the same time the company secured a new loan with Kairat Satylganov, who has agreed to lend $2 million. The intention is that the loan will be converted to consideration should the lender opt to acquire a 30% interest in Munaily.