Update on BNG/KNOC farm-out

RNS Number : 7012R

Roxi Petroleum Plc

21 November 2012

 



For immediate release                                                                  21 November 2012

Roxi Petroleum plc

("Roxi" or "the Company")

Update on BNG / KNOC farm-out

Roxi Petroleum plc, the Central Asian oil and gas company with a focus on Kazakhstan, announces that it has been informed by KNOC that KNOC has decided not to complete the previously announced farm-in to BNG.

All material regulatory consents had been received to allow the BNG farm-in to proceed and significant preparatory work by Roxi and KNOC had been completed.

The only outstanding issue related to the procurement by Roxi of an advance waiver from the Kazakh regulatory authorities to allow KNOC to switch its investment from BNG to Galaz in the event KNOC was not satisfied with the results from BNG. Under Kazakh law, waivers are only granted after a transaction has been agreed, and in this case such a condition was not capable of satisfaction.

Discussions over the past few months have centred on finding an alternative mechanism to protect KNOC's position should it seek a switch into Galaz, but regretfully KNOC has decided none of Roxi's suggested alternatives is acceptable.

Roxi will now look to build on the preparatory work at BNG with new partners and a further announcement will be made in due course.

Comments

Clive Carver, Chairman, commented:

"This is clearly disappointing and will inevitably cause a further delay at BNG while we find a new partner.

On the brighter side there has been significant progress in developing the BNG asset to a point it is now ready to drill. Work has already started to find a replacement farm-in partner to help us develop this exciting asset."

Enquiries

Roxi Petroleum PLC                                                                     c/o Buchanan

Clive Carver, Chairman                                                      [phone]

WH Ireland plc                  

James Joyce / James Bavister                                           [phone]

Buchanan (Financial PR)

Tim Thompson / Helen Chan / Tom Hufton                   [phone]

 

END

 

 

MSCLFLFLLFFXFBF