Last checked at 31 Mar 2010 11:11
| For immediate release | 31 March 2010 |
Roxi Petroleum ("Roxi" or "the Company")
Operational update and total voting rights
Roxi Petroleum (Roxi Petroleum ("Roxi" or "the Company"), the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to announce the following corporate update:
·; Canamens exercise stage 2 of the BNG Asset agreement
·; Roxi repays the US$3 million Arawak convertible loan
·; Arawak exercise 2 million warrants
BNG
Roxi is pleased to announce that Canamens Energy BV ("Canamens") has informed Roxi that it has exercised its option under stage 2 of the BNG disposal agreement, approved by Roxi shareholders in November 2009, to purchase a further 12 per cent of the BNG asset from Roxi for a further funding commitment of US$23 million, all of which will be treated as a loan to BNG Energy B.V., repayable from future revenue from production at the BNG Contract area.
In December 2009, under stage 1 of the BNG disposal agreement, Canamens acquired 23% of the BNG asset to Roxi in return for funding commitments of US$32 million from Canamens, of which US$27 million has been treated as a loan to BNG Energy B.V repayable from future production at the BNG Contract Area. Canamens also paid Roxi US$2 million on signing.
Following the exercise of option by Canamens, Roxi will hold a 23.41 per cent. interest in the BNG Contract area.
As a result of Canamens decision to exercise their option under stage 2, Roxi's 2010 BNG work programme commitments are now fully funded.
Repayment of Arawak convertible loan
The Directors also announce that Kuat Oraziman, a director of the Company, has made available a loan of US$3 million to allow the repayment of a US$3 million convertible loan due to Arawak Energy plc ("Arawak"). Had the Arawak loan not been repaid before 31 March 2010, Arawak had the option to convert the amount due with interest to 20,174,457 Roxi shares representing 4.84 per cent of Roxi's issued share capital.
Mr Oraziman's loan is to Galaz and Company LLP and has been made under the financial assistance provisions of Kazakh company law. The loan is interest free and due for repayment on 1 July 2010.
As Mr Oraziman is a director of the Company the loan is a related party transaction. It is the view of all the Independent Directors, being all the directors except Mr. Oraziman, who have been so advised by Matrix Corporate Capital LLP, that the loan from Mr Oraziman is in the best interests of the Company. In providing advice to the Independent Directors Matrix Corporate capital LLP has taken into account the Independent Directors' commercial assessment.
Exercise of warrants
Roxi was notified on 29 March 2010 that Arawak has exercised 2 million warrants at a price of 10 p per share, for an aggregate consideration of £200,000. Consequently, Arawak's shareholding in Roxi has increased from 21,168,721, representing 5.07 per cent. to 23,168,721 shares representing 5.53 per cent of Roxi's issued share capital.
Update on LG / Galaz
The proposed transaction with LGI in respect of Roxi's interest in the Galaz assets is progressing well and a further announcement will be made in due course.
Total Voting Rights
In line with the Financial Services Authority's Disclosure and Transparency Rules, as at 31 March 2010, including the matters referred to in this announcement, the Company's total issued share capital is 419,218,386 ordinary shares of 1p each.
Roxi does not hold any shares in treasury.
Therefore, the total number of voting rights in Roxi is 419,218,386, which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Roxi under the FSA's Disclosure and Transparency Rules.
David Wilkes CEO commented
"Canamens decision to exercise stage 2 of the BNG assets disposal agreement is a very positive development. As a result Roxi's 2010 BNG work programme commitments are now fully covered.
Enquiries
| Roxi Petroleum plc David Wilkes CEO |
+7 727 244 0920 |
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| Buchanan Communications (Financial PR) Tim Thompson / Ben Romney |
+44 207 466 5000 |
| Matrix Corporate Capital LLP (NOMAD and broker) Alastair Stratton / Anu Tayal |
+44 203 206 7000 |
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About Roxi
Roxi Petroleum was admitted to the London Stock Exchange AIM on 22 May 2007 with intent to acquire controlling interests in and develop oil and gas assets in Central Asia. Roxi's strategy is to target oil discoveries and mature exploration acreage which have reserves and production upside. This strategy has allowed the Company to rapidly acquire a number of excellent exploration and development assets in Western and Central Kazakhstan, covering a combined area of 1,880 km2. These assets have, upon acquisition, significant reserves under the Kazakh Government's reserve classifications of C1+C2+C3. It is Roxi's strategy to use available modern technology to move the reserves from the current classifications to internationally recognized SPE classifications recognized by the AIM and other financial markets. Roxi will also add further value to the assets by bringing these reserves into production.