Roxi Petroleum plc Hits Five Year High On News Of Oil & Gas Find

oilHaving surged up almost 40% in late trading yesterday (Tuesday) following news that both oil and gas shows have been detected in a core sample taken from its A5 deep well, the share price of Roxi Petroleum (LSE: RXP) has been highly volatile this morning, rising anything up to 12% and then falling back as much in seconds. 

Roxi confirmed the deep discovery in its flasghip BNG Contract Area well in an announcement this morning — oil and gas shows were found in a 9.85m sample recovered from a 12m range between 4,332m and 4,344m. Roxi has a 58.41% interest in the BNG Contract Area, which is in the west of Kazakhstan.

Roxi’s management says it believes that the oil-bearing interval extends beyond the 12m range from which the sample was taken. The company now plans to take core samples from an additional 18m range between 4,347m and 4,365m and, should those show oil, will take further samples until the full extent of the oil-bearing intervals is established.

Commenting on the announcement, Chairman Clive Carver said

We remain delighted with these early indications and look forward to further quantifying what has been discovered in due course.

At the time of writing, Roxi’s share price is up 2.45% on the day so far, at 17.8p. That means a rise of around 227% on the year so far, compared with a fall of 2% in the FTSE All-Share index. Over five years Roxi is only up 109%, but that still beats the All-Share’s 50% gain over the same period.

If an oil & gas exploration company seems a bit too risky, but you're looking for a great long-term growth opportunity, get hold of "The Motley Fool's Top Growth Share" report. Our top analysts are very excited by this innovative company, and perhaps you should be too.

What's the company's name? Get your copy of the free report now and find out!

Jon Wallis has no position in any shares mentioned. The Motley Fool has no position in any of the shares mentioned.