Roxi Confidence returning!

Coat of arms of Kazakhstan (flat)

Good news rumoured!

There’s been an awful lot written about poor old Roxi lately and most of it has been wide of the mark. The aim  of Roxi Petroleum is to monetize proven undeveloped discoveries using modern technology and drilling techniques and to work with local partners who are already established in Kazakhstan and the territories in which Roxi wish to operate. Roxi is focused on developing these assets against the backdrop of an improving financial position. And I might add an increasing oil price. This is the Rationale behind the company.

The recent hiccup on NK20/Elmes although a disappointment  has been over-played by investors and the CEO Wilkes commented thus:


Although the results of NK20 are less favourable than NK 22, both wells indicate encouraging potential for the newly extended area for Galaz.

We will now continue to focus on the development of NW Konys to achieve early production from the existing wells drilled in 2009, following receipt of the final permits, as well as evaluate the new production well locations as part of the next phase.

Galaz and Company LLP

Galaz has received confirmation from the Ministry of Oil and Gas that it will receive a two-year extension to the Subsoil User Contract for the NW Konys Contract Area. The addendum to the contract and work programme will be finalised with the Ministry Working Committee over the next sixty days.

This extension period will allow continued appraisal of NW Konys field during Pilot Production and the exploration of the North Konys structure in the Area Extension announced on 12 January 2011.

It is now estimated that Galaz will receive all permits and approvals to start pilot production in H2 2011. Following completion of the SSUC amendment, Galaz will apply for Pilot Production consent for the extension period. Upon receipt of all emissions and production permits, production will begin immediately from the available wells, which have individual facilities. Tendering for camp, pilot production facilities, and the first stage, development drilling campaign will commence after completion of the extension award.

It’s nailed on here that Roxi are going into production and I expect the sp to begin to rise once again into double figures. The catalysts for this will be confirmation from the city of an institutional buy in on the back of the Canamens debacle. Further proving up of the Roxi assets and first production. with permits issued in full. All of which will happen in good time.

All looked to be back on track until the strategic review from Canamens froze their stake to 28.75%. As a consequence Roxi’s stake in the BNG contract area will increase to 29.66%. Now this could turn out to be a silver lining.

The thoughts from the city are that the funding issue should be finalised in the near future. I don’t personally see any demons here. And remember oil exploration is three steps forward two steps back they have traded in excess of 13p! Currently way down and off the investor radar.

In the short term Canamens’ decision not to advance the funds for BNG will have little operational impact as most of the seismic acquisition and processing work has been completed and the publication of an audited portfolio of BNG prospectivity is expected in Q2 2011.

***Clearly the longer term development of the BNG asset will require additional funding. Roxi together with Baverstock, who between them would own some 70.25 per cent of the BNG asset will, in due course, seek to raise additional funding from industry sources.***

They will shortly no doubt be back on track and an immediate 10p target should be set on good news there’s up to 100% upside here as confidence begins to return. Investors should keep faith there’s good news in the pipe-line!




You may also like...

No Responses

  1. alex says:

    I need 55% to break even lol, the fastest loss I’ve ever made goes to rxp.

  2. City Brokerage. says:

    Daniel I have tried to contact you several times by email.
    I do realise that a site such as this will get inundated with email queries running in to several hundred each week.
    Logistically it is impossible to reply to all email correspondence.
    I have posted our company email and would like to enter into a dialogue with you which could be mutually beneficial to yourself and our group. We are extremely impressed with the depth of knowledge and insight shown and shared. I will forward you a contact telephone number in reply to an email.


    • Anne Chance says:

      City Brokerage, sounds very intriguing.

    • Dust Ferret says:

      City Brokerage, can you verify your company on here please, you have nothing to hide ??? just your name leads PIs to an assumption which without verification should not be allowed on this blog and moderated.

  3. Arty says:

    55%, if only it were thus…..with a 10p target, quick lets do some maths…….that leaves me… it…..2.95 short.

    You win some, and then there’s Roxi.

    Good thing I listen to my on advice “…only gamble what you can afford to lose…”

  4. stevie says:

    Dan, 5 solid sources totally unconnected all calling RKH as much better than expected oil shows. If only 1 I would be cautious, 2 I start to listen, 3 I really listen…..5!!???? Can you get burrowing and see what you find, thks.
    Good to also see you are very bullish on RRL past weeks, agree with your sentiment , loads to come in following week but I’m still to keep my yap shut…..cheers

    • Dust Ferret says:

      Stevie, can confirm your RKH rumours. Crew change Wednesday for news to filter.
      Also look at VPP farm in Cladhan South with Sterling, gives alot of confidence to forthcoming Cladhan drills.

  5. Christian F says:

    Dan, Just to keep you updated re. EME’s JVP partner AUT have released “the reserves report” last night so EME will be doing the same within hours. The market does not know this so a great entry time. EME have told me they will embark to London for some presentations when the report is out.

    8th March 2011
    1P reserves have increased by 369%
    o 2P reserves have increased by 261%
    o 3P2 reserves have increased by 148%

    EME should be about 20p on this report, they are still only 8.75p to buy.


  6. stevie says:

    Danny boy…….MTA cant believe the friggin pi’s lack of enthusiasm over what was a “we’re in production” and “oil sales to follow shortly” RNS!!!!

    • Gordon says:

      It seems to be because of a lack of info regarding flow rates at present. I guess a lot of people are holding back waiting on confirmed prodution figures. It was however a very positive RNS – you dont get much better than “we’re in production”!

  7. Wendyhouse says:

    Dan can you check out Legendary Investments?
    Seems like a high risk high reward type but would like to hear your opinion.



  8. alex says:

    any chance of 5p by end of day on mta? mta hit by a wall.of selling at 8.00am, even went negative at one point.

  9. alex says:

    i just hope a “were in production” rns from xel doesnt lead to a 2% increase in share price like mta today, I don’t know why I bother lol