Roxi Petroleum has entered into an agreement to raise $40 million from the issue of new Roxi shares.

Mr. Kairat Alpamysovich Satylganov, a Kazakh investor, has agreed to subscribe for 355,165,716 new Roxi shares at a price of approximately 7p per share, being a significant premium to the closing share price of 2.125p per share as at 7 January 2013. The first $10 million will be paid on 31 January 2013, in exchange for the issue to Mr. Satylganov of 88,791,429 new Roxi shares, representing approximately 14.57% of Roxi's current issued ordinary share capital and 12.71% of Roxi's ordinary share capital as enlarged by such share issue. The remaining $30 million will be called down by Roxi's Board in exchange for a further 266,374,287 new Roxi shares, to fund work programme commitments at the Company's assets, principally at BNG, where the funding will allow Roxi to drill three deep wells and two shallow wells at BNG in 2013.

Tags: Roxi Petroleum