7th May 2008 07:18
Roxi Petroleum Plc07 May 2008 Roxi Petroleum Plc("Roxi" or the "Company") Extension of Contract Territory Introduction The Directors of Roxi are pleased to announce that its 58% owned Kazakhsubsidiary, BNG Ltd. LLP has been awarded an extension to its existing BNGContract Area. Accordingly the BNG Contract area has increased by 9.8 per centof the total area of the contract territory to 1,561 km2. Background Roxi acquired its interest in the BNG Contract Area as part of the acquisitionof 59% of Eragon Petroleum plc ("Eragon") which was completed in early March2008 (the "Eragon Acquisition"). The BNG Contract Area initially covered anarea of approximately 1,422 km2, and is located approximately 40 km from theTengiz oilfield in the Pre-Caspian basin of West Kazakhstan. The BNG ContractArea is considered by the Directors of Roxi to be highly prospective in both theJurassic and Triassic sandstones at depths of 2,500 - 3,500m and in the pre saltCarboniferous sandstones and carbonates at depths of 4,000-5,000m. Explorationin this area since the 1980's has resulted in the development of severalJurassic discoveries in the acreage surrounding the BNG Contract Area. Withinthe boundaries of the BNG Contract Area the owners of Eragon and the Directorsof Roxi identified open acreage which they considered to be an extension of theexploration potential that existed under the original contract area. BNG Contract Area - extension: The extension to the original BNG Contract Area covers an area of 139 km2 and isentirely within the original BNG Contract Area boundaries (the "Extension"). Inthe opinion of the Roxi Directors the awarding of the Extension will help toconsolidate the exploration strategy in the BNG Contract Area and increase thepotential for early exploration success, the addition of reserves and early testproduction. Rob Schoonbrood, Roxi Chief Executive Officer commented: "I am delighted that Roxi has been awarded the extension to the BNG ContractArea. We feel that the new territory is particularly prospective andcomplementary to the current portfolio, With the completion of the Eragon Acquisition, Roxi is now in an excellentposition to step up the development of this asset and achieve significantresults in the near future; hitting our targets of successful exploration anddevelopment leading to production and cash flow." Qualified person Duncan McDougall, Technical Director of Roxi Petroleum and a Fellow in theGeological Society, London, has reviewed and approved the technical disclosurein this announcement. He holds a BSc in Geology and has 25 years internationalexperience of exploration, appraisal, and development of oilfields in a varietyof environments. Enquiries: Roxi Petroleum plcRob Schoonbrood, CEO +7 727 244 0920David Barker, COO +7 727 244 0920 College Hill (Financial PR)Paddy Blewer +44 (0) 20 7457 2020Nick Elwes +44 (0) 20 7457 2020 WH Ireland (NOMAD and broker)James Joyce/David Porter +44 (0) 20 7220 1666 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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