LONDON (ShareCast) - Central Asian oil and gas company Roxi Petroleum has completed its first pilot production at the South Yelemes field in the BNG Contract Area.

Roxi has a 58.41% interest in the BNG Contract Area and the South Yelemes is a part of the BNG Contract Area where Roxi has been exploring predominantly shallow prospects.

Roxi has three wells at South Yelemes; wells 54, 805 and 806.

On February 18th, well 54 produced at a daily rate of 219 barrels of oil per day (bopd) with a 2mm choke. On February 14th, Well 805 produced at a daily rate of 120 bopd by sucker rod pump and testing of well 806 is due to take place in mid-March.

With regard to ongoing production, the company reported that following the testing of well 806, the intention is to produce from the wells at the rates indicated.

The company reported that an agreement to sell oil from South Yelemes has been entered into with local purchasers.

Roxi further reported that it expected to commence its deep drilling campaign at other parts of the BNG by spudding a 4,200m well in April 2013.

Clive Carver, Chairman of Roxi Petroleum, commented: "We are extremely pleased with the test results to date at South Yelemes and look forward to updating the market following completion of the tests on Well 806."

Roxi Petroleum currently has interests in four exploration and production contract areas spread over three petroleum basins. These include the Pre-Caspian basin in Western Kazakhstan, the Mangyshlak basin in Western Kazakhstan and the Turgai basin in Central Kazakhstan.

The company’s share price was up 2.70% to 4.75p at 10:24 on Monday.

MF

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE