Roxi Petroleum signs deal to increase holding in BNG assets in Kazakhstan

Central Asian oil and gas company Roxi Petroleum has agreed to merge its interests in Eragon assets in Kazakhstan with Baverstock.

Eragon assets include the flagship BNG assets.

This deal will increase Roxi's interest in the Eragon assets from 58.41% to 99%.

Roxi Petroleum announced that it will post a circular to its shareholders concerning this proposed deal.

The merger is subject to approval of Roxi’s independent shareholders and regulatory authorities.

Roxi Petroleum chairman Clive Carver said: “The proposed merger has been longed planned and once completed, will bring 99% of our principal asset BNG under our direct control, removing any funding constraints associated with maintaining the current structure.

“Additionally, the capitalisation of some $10 million of debt would not only make the group essentially debt free but also demonstrates the continued belief and commitment of the companies leading investors to its ultimate success.”

According to the agreement, Roxi will allocate 651 million new ordinary shares to Baverstock. 

In a separate arrangement, around 80 million additional shares will be issued to Kuat Oraziman as conversion of an existing loan.

All these will take the new equity to around 43.8% in the enlarged company.

Following the deal, the company will re-launch itself under the new name, Caspian Sunrise.