FoxDavies Daily Monitor 1st December 2010 Oil & Gas Corporate News
Roxi Petroleum Plc (LON:RXP) (RXP, 4.38p, ? (5.41%)) has received approval from the Anti-Monopoly Agency of Kazakhstan to sell a 40% interest in Galaz and Company LLP, through its subsidiary Galaz Energy BV ("GEBV"), to LG International Corp. (LGI), announced on 29 April 2010. This was the final approval being sought from the government authorities for the deal, which will close with the payment by LGI to GEBV of US$15.6m, as well as access to further funding of US$17.5m loan financing from LGI for the further development of the NW Konys field. Out of these proceeds Roxi expects to receive a loan from GEBV, to be repaid out of Roxi's share of future production, of up to US$4m. The final amount of the loan is the subject of further negotiations which are expected to be concluded in the next few days. Roxi retains a 34.22% net interest through its holding in GEBV. The Company anticipates the resumption of activity on the Galaz Contract Area with operations on NK22 and NW Konys Field in preparation for Pilot oil production in 2011. Earlier this year the board implemented a rationalisation of the Company's portfolio as a response to drilling results and the future demands on the business. The Company will concentrate its efforts on BNG and Galaz going forward. As part of this strategy the Company announced on 12 October 2010 the sale of its entire interest in Ravninnoe Oil LLP, and has also re-entered negotiations with Corporation BT LLP regarding the sale of Roxi's interest in Munaily. With respect to Beibars Munai LLP, Roxi will seek a farm-in partner in 2011. Concentration of the Company's effort on its core assets will result in efficiencies, further reduce overheads and streamline the business as the operating subsidiaries are strengthened to implement operations and routine functions. This will also put the Company in a stronger position to develop the core assets going forward.
Valiant Petroleum (LON:VPP) (VPP, 548p, ? (0.27%)) published an update with regard to its operations during the second half of 2010 and forward work programme for 2011 and beyond. 2010 Production will be at upper end of guidance and 2011 is anticipated at 6,500-7,500bopd. Phase II development of the Don fields…
