Roxi Petroleum plc (Roxi or the Company), the Kazakhstan based oil exploration and development company, is pleased to announce the first day of dealings in the shares of the Enlarged Group on the AIM Market of the London Stock Exchange , following the passing on 29 February 2008 of all the resolutions relating to its acquisition of 59% of Eragon Petroleum plc (Eragon)
Roxi has acquired a 59% controlling interest in Eragon, the holding company for three 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:
• Three Contract Areas: BNG, Galaz and Munaily – in aggregate 1,453 km²
• Located in the Pre Caspian and the Turgai basins - established petroleum provinces
• Considerable exploration, development, and near term production potential:
- BNG: 21 exploration leads
- Galaz: Discovery with near term production potential
- Munaily: Field rehabilitation
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.
Rob Schoonbrood, CEO of Roxi Petroleum plc commented,
“We are delighted to have completed the transaction, and now look forward to developing the assets, and revealing the upside that we strongly believe to be in place, thereby adding considerable value to our shareholders.
The reworking and rehabilitation of Soviet era works is a recognised investment play, and we belive that Eragon could provide the same or better base for success as has been seen in UK listed markets.
We look forward to working together with our JV partners, and remain entirely committed to Kazakhstan and further adding to our portfolio of assets, as and when the correct deal is considered.”