Thursday, August 16, 2012 -
Roxi Petroleum shares rallied Thursday after the Kazakh-focused oil and gas firm reported crude flows at a test drilling on its Galaz field.
Its NK8 well released oil at a rate of 251 barrels of oil per day (bopd) at around 4,245 feet, the company said in a statement.
Drilling was stopped at a total depth of 4,520 feet.
The London-listed company owns a 34.22 percent stake in the richly endowed Galaz field, which the company said will produce around 500 bopd based on results from NK8 and its earlier NK6 and NK7 test wells.
"Production at this level at Galaz provides a strong underpinning of the company's valuation ahead of the exciting deep drilling campaign at BNG, which upon receipt of the required regulatory approvals, is scheduled to commence in the autumn," Roxi chairman Clive Carver said in the statement.
Roxi holds a 58.4 percent interest in BNG, also located in western Kazakhstan close to the shores of the Caspian Sea and nearby giant producing oil fields.
Shares in Roxi surged 11.5 percent Thursday morning on the London Stock Exchange.
The news lifted investor hopes after a disappointment in April when Roxi announced it was abandoning its unsuccessful NK10 well, sending shares to five-month lows.