Roxi Petroleum, the Central Asian Oil and Gas Company with a focus on Kazakhstan, announces the following operational update on Galaz: NK22 testing delayed and remedial action required.
Galaz (Roxi Interest 34.2%)
Well NK22
Initial attempts to perforate and test the Arskum sandstone have proved to be unsuccessful due to a poor cement bond and subsequent water influx from behind casing. Galaz is currently preparing plans for remedial action, most likely to be cement squeeze and reperforation. Under the terms of the recently announced Sale and Purchase Agreement (“SPA”), further operations will wait until the Company’s new partner, LG International, have reviewed and approved the programme. Before closing of the SPA which will be subject to various State approvals, the parties have agreed to revise the operating company (Galaz and Company LLP) constituent documents such that LG International will have operational control of the sub-soil user contract.
