Roxi Update on Discovery at BNG

Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to update the market with news of the deep discovery at its flagship BNG asset.

Background

The BNG Contract Area is located in the west of Kazakhstan 40 kilometres southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometres of which 1,376 square kilometres has 3D seismic coverage acquired in 2009 and 2010.

Roxi has a 58.41 per cent interest in the BNG Contract Area.

Deep Well A5

Well A5, the first deep well on the BNG Contract Area, with a planned Total Depth of 4,700 meters is targeting principally the middle Carboniferous formation at 4,390 meters of the South Emba sub-basin.

As previously announced oil and gas shows were detected at a depth of 4,332 meters.

Roxi is pleased to announce the first core sample over the 12 meter range between 4,332 and 4,344 meters has been successfully completed with a 9.85m core recovered.

Initial examination shows the recovered core of dolomitic limestone and is porous, fissured and filled with oil.

At 4,344 meters depth a 5-10 cm layer of siliceous rock has been encountered.

Roxi's management believes the oil bearing interval extends beyond the 12 meters referred to above and is seeking  to take further core samples over an additional 18 meters between depths of 4,347 and 4,365 meters. Should as the management team expect the 18 meter interval show oil, further core samples will be taken until the full extent of the oil bearing intervals are established.

Once the depth of the oil bearing interval has been established testing work will focus on establishing flow rates for the oil encountered.

Further announcements will be made in due course.

Comment

Clive Carver, Chairman commented, "We remain delighted with these early indications and look forward to further quantifying what has been discovered in due course."