Roxi Petroleum, a Kazakhstan based oil exploration and development company that on Mar. 3, acquired 59% of Eragon Petroleum, Wednesday said that it has completed the acquisition of a 193 km2 3D seismic survey over the Contract Area located in Mangistau and Atyrau Oblasts of Western Kazakhstan.
At the end of January, the final data was delivered by the seismic contractor, KazGeCo, to Veritas Caspian LLP for processing.
The survey is designed to resolve the detail of the Ravninnoe oilfield, which Roxi believes is a combination of structurally and stratigraphically closed clastic reservoirs in the Middle Carboniferous.
On the Mar. 12, Roxi began the first of five well re-entries planned for 2008 to establish the condition of the wellbores and possibly test-produce the reservoir.
These wells were drilled in the 1980's and encountered oil shows in Carboniferous sandstones at depths between 3200 million and 3300 million, Roxi will acquire modern wireline log data and perforate and test the Carboniferous reservoirs if the wellbores are in safe and sound condition.
Roxi has completed all environmental and regulatory permissions in order to acquire a 121km2 3D seismic survey over the Contract Area located in the Mangistau Oblast of Western Kazakhstan.
This survey was originally planned for the fourth-quarter of 2007 but was delayed for 3 months due to procedural matters.
A further delay has been encountered pending resolution of a recent conflict in land use rights issued to both Roxi and the Kazakhstan Ministry of Defense which is considering the surface area for use in training exercises.
Discussions with the local Land Use Authority have taken place to seek a workable solution. Subject to resolution of this issue, the Seismic Contractor, KazGeCo, will mobilize and begin work in mid 2008.
The acquisition of 30km2 of 3D seismic was completed in its Galaz (NW Konus) Contract Area located in the Kyzylorda Oblast of Central Kazakhstan.
The seismic contractor, Azimut, completed the acquisition of the survey in January.
The dataset is currently being processed by Geostan. The objective of the survey is to better define the structural and stratigraphic detail of the Upper Jurassic reservoir sands with existing proven, probable, and possible reserves.
The survey will also assess the exploration potential in the lower Cretaceous-Neocomian sands and in deeper undrilled Jurassic sequences.
Wells 26 and 27 were re-entered the fourth quarter of 2007. Well 26 was re- perforated in the Jurassic sands at a depth of 1330 million and 10m3 of oil and water were recovered to surface.
Well 27 was re-perforated in Cretaceous sands at a depth of 1315 million and 50m3 of oil and water were recovered to surface.
Roxi will install a pump to test Well 27 within the month. Basic production equipment is being installed to test Well 26.
Tenders for new well drilling have been received and a contract will be awarded to begin drilling in the second quarter.
Roxi has applied for an extension of a portion of the Contract Area in its BNG (Ayrshagyl) Contract Area located in the Mangistau Oblast of Western Kazakhstan to cover structures within the original block.
Should the extension be granted, the company will perform gravity and seismic survey programs on this area and elsewhere on the block in 2008.
Two wells were drilled on its Munaily Contract Area located in the Atyrau Oblast of Western Kazakhstan in the fourth quarter of 2007.
Well H1 was drilled to a total depth of 1270 million and encountered a 12 million gross thickness of oil bearing Jurassic sands at 1228 million. The well was completed and put onto production test in January.
The well has flowed under natural flow at rates of 80 barrels of oil per day over a 30 day period, Upon completion of testing, further prospective zones existing in the wellbore will be perforated and tested.
Well H2 was drill to a depth of 600 million and encountered initial indications of oil in existing reservoirs. Further work is needed to test this and other zones in the well.