Project Profile

Value: US$100 million
Start-up Year: 2013
Location: Ayrshagyl Field, Mangistau (Mangghystau) Oblast, Kazakhstan
Production: 865 bopd
Area: 1,561 km2

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%.

In March 2012, the BNG contract area was farmed out to Bakmura LLP, a subsidiary of the Korean National Oil Corporation (KNOC) for US$30m. Although the farm-out has been approved by the Kazakh authorities, Roxi and KNOC are yet to resolve how to deal with a pre-condition of the farm-out agreement in relation to a switch of interest of KNOC in BNG to Galaz for which Kazakh approval has not been received and that the Board believe may  not be able to be satisfied. Discussions on this matter are progressing in a constructive fashion to find an alternative mutually acceptable solution. However in November 2012, KNOC decided not to complete the farm-in to BNG contract area.

In October 2017, the contract area was extended on an appraisal basis for six years from until June 2024.

Operator:

Caspian Sunrise (formerly known Roxi Petroleum): Operator with 99% interest

Contractor:

PGS Kazakhstan LLP: Seismic study