Roxi has entered into an agreement with Canamens Limited ('CL') and Sector Spesit IV, a sub-fund of Sector Umbrella Trust ('SS4') to cancel future royalty payments due to them from production from Roxi's BNG asset in return for the issue of 46,661,654 fully paid ordinary shares representing 5% of the enlarged issued ordinary share capital.

Background

Roxi acquired its interest in the BNG Contract Area in 2008 as part of Roxi's acquisition of 59% of Eragon Petroleum Limited ('Eragon').

In January 2009, Roxi entered into a farm out agreement with Canamens Central Asia BV ('CCA') whereby CCA acquired a 35% stake in BNG from Roxi in return for a $7 million payment to Roxi plus a further $45 million to be paid towards existing BNG work programme commitments

Tags: Roxi Petroleum