RXP.L Share News (RXP)

Troubled exploration firm Roxi Petroleum saw its interim revenue and profits boosted by a one-off transaction but warned it still cannot speak with confidence about its future. Although profits for the six months to 30 June were buoyed by the $50m farm-out arrangement with LGI in January, the group remains reliant on its largest shareholder, a director of the company, for its day-to-day funding. The firm said its needs $5m to fund its operations over the next 12 months, which director Kuat Oraziman has indicated he is willing to provide. He has also agreed to extend the other loans he has made to the group. The group reached an "acceptable" agreement with its previous farm-out partners, Canamens, in its BNG contract area following Canamens' decision to withdraw from Kazakhstan, Roxi's most attractive asset. The cancellation boosted Roxi's interest in the asset from 2.41% to 58.41%.The company warned: "It will not be until we have concluded a replacement farm-out arrangement on BNG that we can speak with confidence about the future. Based on our conversations to date we hope such an arrangement will be in place later this year." The company was able to reduce its administrative costs by 31.8% compared to the same period in 2010 as part of cost-reduction initiatives. Non-executive chairman Clive Carver said: "The most important developments during the period under review were the farm-out deal for Galaz with LGI and the cancellation in May 2011 of the BNG farm-out arrangements with Canamens. Our future success now rests on finding a suitable replacement farm-out partner at BNG and securing additional support from our largest shareholder."The share price fell 8.33% to 2.75p by 09:06. NR