BNG
BNG Ltd LLP operates the BNG Contract Area also referred to as the “Ayrshagyl block”, which covers 1,561km2 of low lying Steppe and transition zone at the edge of the Caspian Sea, in the Mangistau Oblast in Western Kazakhstan.
This transition zone which covers approximately 20% of the block, floods up to twice a year, depending upon sea level and weather conditions in the Caspian. The block is surrounded by producing fields of the southern Pre-Caspian including, Tengiz, Borankol, Tolkyn, and Nsanovskoye. The block was acquired by Roxi in 2008 through the acquisition of 59% of Eragon Petroleum Limited, through which the company holds a controlling interest. After receiving back 35% of BNG from Canamens Roxi retains a 58.41% interest.
The block contains oil and gas potential in Lower Cretaceous, Jurassic and Triassic sequences in the Post Salt succession, and in the Permian and Carboniferous sequences in the Pre-Salt succession. Ayrshagyl was explored under the Soviets, since which time little work has been carried out on the area. The results of this early exploration resulted in tests of hydrocarbons at commercial rates from under evaluated Jurassic and Permian reservoirs. In May 2009, BNG completed acquisition of 360km2 of full fold 3D seismic over the northern part of the block. The area of the 3D seismic survey includes the Yelemes and Ayrshagyl group of structures, which were explored in the 1980’s. The company intends to use the 3D to better define potential of existing discoveries, and to build a portfolio of exploration targets, for 2010 and 2011. During 2010, further 3D seismic acquisition was processed generating exploration prospect that will feed a 2012-15 drilling schedule. The current seismic programme has brought the total coverage of the block up to 86%.
BNG has commenced appraisal of the South Yelemes structure, with the testing of well 54 and the drilling of wells 805 and 806 as well as well 135 on North Yelemes in 2010/11. In addition, the company is currently drilling well 136 on North Yelemes which will be drilled to a depth of 2,950 metres and is now expected to be completed in early March 2012.
The Company has received the gas flowing license from the Ministry of Oil & Gas, which now permits the Company to begin preparation for the commencement of pilot production from wells 54 and 805 in the 2nd quarter of 2012.
The Company is also looking for new partners to farm into BNG to help fund the future development of this project.
