News 2011
#1 (67) February 2011Roxi Petroleum
Roxi Petroleum has received approval of the Antimonopoly Agency of Kazakhstan to sell to LG International Corp. (LGI) for $15.6 million a 40 % interest in Galaz & Co., developing the Konys field in the west of Kazakhstan. The sale will be carried out through Roxi's subsidiary, Galaz Energy BV (GEBV). Roxi Petroleum informed about it on its website. This permit is the last one demanded from the state bodies to complete the deal as a result of which GEBV will own 58 % in Galaz & Co., LGI - 40 % and local partners - 2 %. Meanwhile, the indirect share of Roxi in this venture through participation in GEBV will come to 34.22 %. According to the company, in accordance with the conditions of the deal, Roxi will also get access to the means of LGI in the amount of $17.5 million intended for further development of the Konys field.
It is said in the Roxi's message that under operative control of LGI based in Almaty, preparation is under process for implementing a pilot production program. Five wells have been drilled on the field ready for the pilot oil production. Initially, it is planned to launch only two wells. According to David Wilkes, general director of Roxi Petroleum, quoted in the message, the conclusion of this deal will mark the start of new partnership with LGI under the Konys field's development. The money resources received as a result of this deal will be directed by Roxi at further development of its main assets - Galaz and BNG. Earlier, Roxi informed about receiving the notification from the Kazakhstan's Ministry of Oil and Gas and the Committee of Geology and Subsoil Use about approval of the project for the pilot development of the Konys field.
On December 29, the company also declared about the start of drilling of exploration well 135 of the structure North Elemes. The total depth of the well located in the contract territory BNG is 2950 meters. It is expected that drilling will take about 42 days after which further announcement will be made.
Roxi Petroleum was formed in October 2006 with the aim to develop the oil and gas fields in Central Asia, in particular, in Kazakhstan. Currently it participates in several projects located in the Pre-Caspian basin, on Mangyshlak and the Тurgai basin. In July 2009 and March 2010 Roxi sold to Canamens, an independent oil and gas company engaged in the development of hydrocarbon resources in Central Asia, a 20 % interest in the Ravninnoye project and a 35 % interest in BNG. In October 2010, it sold all its 30 % interest in Ravninnoye.