Roxi Petroleum sells BNG project stake to Korean firm

Kazakhstan-based Roxi Petroleum has agreed to sell a 35% interest in the BNG Contract Area license to Bakmura, a subsidiary of the Korean National Oil Corporation.

Bakmura will pay $5m in cash and invest a further $25m in the BNG work programme to become the operator of the BNG Contract Area following approval of the Kazakh authorities.

The area covers 1,561km2 and lies in the South Emba Sub-basin 40km southeast of the Tengiz field.

Roxi chief executive David Wilkes said completing a farm-out of the BNG Contract Area was a key priority for the company.

"The funding provided by Bakmura will allow us to explore some of the deeper horizons in the BNG Contract Area where we believe greater value exists for our shareholders," added David.

The deal also offers Bakmura an option to acquire Roxi’s 32% interest in Galaz & Company for an additional $5m.

The Galaz Option can be exercised from 7 April 2013 with the consent of the Kazakh authorities.