Roxi Petroleum blames technical problems for possible project delays

Oil & gas company Roxi Petroleum blamed technical problems for potential delays at a project in Kazakhstan, hitting its shares.

Roxi said equipment had got stuck while it was removing drilling fluid from its A5 well on the BNG contract area in the west of Kazakhstan about 25 miles south-east of Tengiz on the edge of the Mangistau Oblast.

The group said it believed it had removed most of the fluid from the well, but tubing used to remove it was still jammed and it was working with contractors to free it.

"Should we not be able to remove the stuck pipe we would, as a last resort, seek to sidetrack the well from a depth of 4,320 metres, running a 4.5 inch liner to the bottom of the well and then continue to test on a conventional basis," Roxi said in an update.

"We expect this would to take up to a further three months to complete."

Shares in Roxi fell 3.75p or nearly 30% to 8.87p at 12:12 in London.