Business
Cancellation of 35 per cent sale of the BNG Asset
Cancellation of 35 per cent sale of the BNG Asset.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n \nRNS Number : 3346G Roxi Petroleum Plc 11 May 2011 \n \n\nFor immediate release 11 May 2011\n \nRoxi Petroleum plc\n \nCancellation of 35 per cent sale of the BNG Asset\nRoxi Petroleum Plc and its subsidiary BNG Energy BV (\"Roxi\" ), the Central Asian oil and gas company with a focus on Kazakhstan, announces that it has cancelled the deal in respect of the sale of a 35 per cent interest in BNG Ltd LLP, the operator of the BNG Contract Area.\nThe interest was originally sold to Canamens BNG BV (\"Canamens\") in 2009 and has now been cancelled and transferred back to Roxi together with all rights under the sale and purchase agreement.\nAdditionally, Roxi has agreed to repay US$2.5 million of loans due to Canamens. Canamens then agreed to novate to Roxi all its interest in remaining loans due by BNG ltd LLP to Canamens, in return for a 1.5 per cent overriding royalty payable to Canamens, based on the value of sales from future production under the existing Sub-Surface User Contract and subsequent Production Contracts. \nRoxi will hold an effective interest of 58.41 per cent of the BNG Asset as a result of this and has effectively resumed operational and financial control of all exploration and production activities at BNG.\nRoxi funding\nMr Oraziman has agreed to defer repayment for 12 months to June 2012 of his loan to Roxi of in aggregate US$4.55 million in return for this loan becoming interest bearing at a rate of 12 per cent per annum. In addition to this Mr Oraziman agreed to extend hi...