Roxi Updates Galaz Stake Sale
Roxi updated on the final consideration for the Galaz sale received from LGI and the extension granted for the Galaz Contract Area.
Roxi is pleased to announce that, following recent approval from the Anti-Monopoly Agency of Kazakhstan, it has now received the full consideration of US $15.6 million for the sale of 40% interest in Galaz and Company LLP, through its subsidiary Galaz Energy BV (GEBV), to LG International Corp. (LGI). Furthermore, under the terms of the transaction, Roxi will now receive access to further funding of US$ 17.5 million loan financing from LGI for the further development of the NW Konys field.
GEBV now holds a 58 percent. direct interest in Galaz, LGI holds a 40 percent. interest and local partners hold a 2 percent. interest. Roxi holds an indirect 34.22 percent. participating interest in Galaz through its holding in GEBV.
The preparations for the 2011 Pilot Production drilling Programme is now under way, under the operational control of LGI, based from Almaty. There are already five wells drilled and completed on the field with standalone facilities ready to start pilot production. Initially two wells will be put into production with the remaining three wells to be brought on as the pilot development progresses.
Galaz Contract Area extension
During 2010, Galaz and Company LLP applied for an extension of the Contract Area to the South and East of the block to explore the eastern side of the Karatau fault. The company has received preliminary confirmation of the extension and amendment of the Sub-Soil User Contract, increasing the total Contract Area six fold to approximately 180 square kilometers.
David Wilkes CEO commented, "The conclusion of this deal represents the beginning of our new partnership with LGI and we look forward to working alongside them on developing this exciting asset.
The deal also provides Roxi with sufficient funds to focus on its two principal assets, being Galaz and BNG, and will enable us to better develop these core assets into production going forward.
The application for the extension area gives significant exploration upside to the Galaz Contract."