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What: The share price of Roxi Petroleum (LSE: RXP) has been up as much as 22% in early trading this morning following release of a further update on its deep discovery at the BNG Contract Area in the west of Kazakhstan, in which Roxi has 58.41% interest.
So what: Last week, Roxi announced oil & gas shows at a depth of 4,332m, over the full length of the 12m core sample. This morning it has said that a further 18m core sample has been taken, between 4,347m and 3,365m, of which 5.62m was successfully recovered.
Whilst detailed analysis of the sample is still to be completed, initial examination confirms it to be grey, microcrystalline dolomitic limestone, and that it’s fissured, vuggy (pitted with cavities) and oil-saturated over its entire length. The new sample indicates that the aggregate thickness of the gross oil-bearing interval discovered so far is at least 33m.
Now what: Roxi says that it will continue to take core samples at increasing depth, until the full extent of oil shows is determined, and that the next sample will be taken from a further 18m range, between 4,365m and 4,383m. Once core sampling is complete, Roxi will begin to assess the flow rate.
At 16.66p at the time of writing, Roxi’s share price has fallen back slightly from its peak last week, but is still up 210% so far this year, versus a FTSE All-Share index that’s fallen 2.3%.
