Roxi Agrees Sale of interest in the Galaz Contract Area
Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, announced the conditional sale of the Company’s equity and debt interests in the Galaz Contract Area, the second of the Company’s principal assets, for net proceeds of $20.72 million after estimates of associated taxes.
In the event that the price of Brent Crude reaches $60 per barrel by 28 April 2015, a further $2.9 million after taxes will become payable to Roxi.
The purchaser is a consortium led by Xinjiang Zhundong Petroleum Technology Co., (“Xinjiang Zhundong”) a Company listed on the Shenzhen Stock Exchange in China. The sale is conditional inter aliaupon the receipt of appropriate Kazakh regulatory clearances, which are expected before the end of April 2015.
Roxi plans to use the funds from the sale of the Galaz Contract Area (the “Galaz Disposal”) to fund all of the planned development in 2015 at the Company’s flagship asset BNG.