Caspian Sunrise Regulatory News (CASP)

3 Mar 2008 07:00

Roxi Petroleum Plc03 March 2008 Roxi Petroleum PLC First Day of Dealings Roxi Petroleum plc ("Roxi" or "the Company"), the Kazakhstan based oilexploration and development company, is pleased to announce the first day ofdealings in the shares of the Enlarged Group on the AIM Market of the LondonStock Exchange , following the passing on 29 February 2008 of all theresolutions relating to its acquisition of 59% of Eragon Petroleum plc ("Eragon") Roxi has acquired a 59% controlling interest in Eragon, the holding company forthree exploration and development assets in Western Kazakhstan. - First day of dealings post acquisition of 59% of Eragon for US$190m satisfied by the allotment of 145m ordinary shares at 65 pence per share - Market capitalisation of (£70.4m) at an Admission price of ( 22) pence per share (being the closing price on 29 February 2008) - Approval of a waiver of the obligation to make a mandatory offer under Rule 9 of the City Code on Takeovers and Mergers granted. - Eragon assets include: o Three Contract Areas: BNG, Galaz and Munaily - in aggregate 1,453 km(2) o Located in the Pre Caspian and the Turgai basins - established petroleum provinces o Considerable exploration, development, and near term production potential: • BNG: 21 exploration leads • Galaz: Discovery with near term production potential • Munaily: Field rehabilitation See appendix 1 for further details - In addition to its original projects of one oil field with development and exploration potential and one exploration block announced at IPO, Roxi now has controlling interests in three oil fields and two exploration blocks with clear potential for further development. ADMISSION STATISTICS Number of Existing Ordinary Shares 168,207,490Number of Consideration Shares 145,000,000Price per share at which Consideration Shares issued 65pProject Management Shares issuable on Admission 6,923,077Number of Ordinary Shares on Admission 320,130,567Consideration Shares and Project Management Shares issuable on 47.46%Admission as a percentage of the Enlarged Share CapitalMarket capitalisation of the Company following Admission at the closing £(70.4m)share price on 29 February 2008 Consulting Option Shares 24,000,000Consideration Shares, Project Management Shares issuable on Admission 51.12%and Consulting Option Shares as a percentage of the then issued sharecapital Rob Schoonbrood, CEO of Roxi Petroleum plc commented, "We are delighted to have completed the transaction, and now look forward todeveloping the assets, and revealing the upside that we strongly believe to bein place, thereby adding considerable value to our shareholders. The reworking and rehabilitation of Soviet era works is a recognised investmentplay, and we belive that Eragon could provide the same or better base forsuccess as has been seen in UK listed markets. We look forward to working together with our JV partners, and remain entirelycommitted to Kazakhstan and further adding to our portfolio of assets, as andwhen the correct deal is considered." 3 March 2008Enquiries: Roxi Petroleum plc Rob Schoonbrood, CEO +7 727 244 0920 David Barker, COO +7 727 244 0920 College Hill (Financial PR) Paddy Blewer +44 (0) 20 7457 2020 Nick Elwes +44 (0) 20 7457 2020 WH Ireland (NOMAD and broker) James Joyce/David Porter +44 (0) 20 7220 1666 For details of the transaction, please see below. For the full admissiondocument, please visit the Company's website: www.roxipetroleum.com Appendix 1 - The Eragon Assets The Eragon Assets comprise the BNG Contract Area, the Galaz Contract Area, andthe Munaily Contract Area, covering approximately 1,453 km(2). The BNG Contract Area The BNG Contract Area covers an area of over 1,422 km2 and is locatedapproximately 40 km from the Tengiz oilfield in the Pre-Caspian basin of WestKazakhstan. The BNG Contract Area is adjacent to numerous producing fields ordiscoveries under appraisal. The BNG Contract Area is considered by the Directors to be highly prospective inboth the Jurassic sandstone at depths of 2,500-3,000m and in the pre-saltCarboniferous sandstones and carbonates at depths of 4,000-5,000m. Explorationin this area since the 1980s has resulted in the development of several Jurassicdiscoveries in the surrounding acreage. Earlier evaluations included in theKazakhstan state tender information for the BNG Contract Area, predicted that upto 700mmbbls (95MMtons) of oil may be trapped on the block. The BNG ContractArea is an exploration block and no reserves have been assigned to it. However,to date the Company has identified 21 leads and prospects from the existing dataacquired through technical due diligence. BNG plans to carry out a four toeight year exploration programme from 2007, which will include collection andevaluation of existing data in 2008, followed by exploration 2D and 3D Seismicin 2008-2009, prior to exploration drilling in 2010-2015. Proposed extension to the BNG Contract Area The Company has acquired an option to extend the BNG Contract Area for $60million. The proposed extension of the BNG Contract Area has been identified asbeing a continuation of the existing exploration trends in the block and coversan area of approximately 139km2. The proposed extension contains two Jurassicand two Pre-salt prospects which the Directors consider excellent explorationpotential. The extension to the BNG Contract Area will help to consolidate theexploration strategy in the BNG Contract Area and in the opinion of theDirectors significantly increases the potential for early exploration success,the addition of reserves and early trial production. The Galaz Contract Area The Galaz Contract Area is located in the Turgai Basin, covers approximately30km2 and is located approximately 120 km north of Kyzylorda in the heart of thepetroleum producing fields of that region. The Galaz Contract Area contains theNW Konys field which was discovered in 1992 directly north west of the Konusfield. Four wells were drilled on the Galaz Contract Area in the early 1990s, withthree delineating the oil-water-contact and one well drilled higher on thestructure tested at rates of up to 70m3/d (440bopd). However, the field wasnever developed. Well 27 has been tested and has pumped paraffinic 40(degrees) API oil on test, from 8m of net Jurassic sands. Well 27 produced at rates up to 310 bopd from a depth of approximately 1310m (measured depth) for a period of one month. Indications of an oil accumulation in the Lower Cretaceous Neocomaniansandstones were encountered in well 29, which needs to be confirmed with furtherdrilling. Both reservoirs are producing in surrounding fields. Galaz hasrecently recommenced work-over operations on the field, on wells 27 and 26, totest the Jurassic reservoir. A Kazakh Institute report estimates that there are currently 12.5mmbbls of C2reserves on the NW Konys field. A recalculation of reserves has been carried outto SPE standards. Proven, probable and possible reserves of 7.9mmbbls aredetailed in the Competent Persons Report. The Company intends to shoot a 3D seismic survey over the field in 2008 toconfirm the structure and reservoir distribution and also to commence appraisal/development drilling. The Munaily Contract Area The Munaily Contract Area covers 0.69 km2 and lies approximately 60km southeastof the town of Kulsary in Atyrau oblast. The Munaily field was first discoveredin 1946. By 2002 the field had produced a cumulative of 10mmbbls of 24 (degrees) to 41 (degrees) API oil, from 11 shallow Cretaceous, Jurassic and Triassic aged sands between 500m and 1650m. The Munaily SSUC was acquired specifically to evaluate and rehabilitate thefield. Unproduced Cretaceous and Jurassic sands are targeted for exploration andappraisal. The Company plans to complete the existing drilling and work-overprogramme and to re-evaluate the potential of the field. This information is provided by RNS The company news service from the London Stock Exchange