LONDON (ShareCast) - Central Asian oil and gas company Roxi Petroleum has commenced production of oil at a rate of 125 barrels per day at its Munaily Field Well H1.

The Munaily field, which is located in western Kazakhstan in the Atyrau Oblast, was originally discovered in the 1940s. Roxi acquired a 58.41% interest in the 0.67 square km rehabilitation block in 2008.

Munaily has a 15-year full production licence, which allows production to be sold at international prices. There are estimated to be 1.2m barrels of bypassed reserves at Munaily.

An agreement has been signed to sell production from well H1 at domestic prices with the proceeds being used to fund the development of an additional two wells. Once these wells are in production the company is expected to look at entering into a off-take agreement at international prices.

Clive Carver, Chairman at Roxi Petroleum, said: “We are delighted to have brought a second field into production. Taken together with the production at Galaz, Roxi's gross production now exceeds 900 barrels of oil per day with 340 barrels of oil per day net to Roxi."

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