Business
Sale of Galaz Interest
Sale of Galaz Interest.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n RNS Number : 0014L Roxi Petroleum Plc 29 April 2010 \n \n\nFor immediate release 29 April 2010\n \nRoxi Petroleum plc\n \nSale of Galaz Interest \n \nRoxi Petroleum plc (\"Roxi\" or the \"Company\")(AIM: RXP) the AIM listed exploration and production company operating in Kazakhstan, is pleased to announce that it has, through its subsidiary Galaz Energy BV (\"GEBV\"), executed the Sale and Purchase Agreement (\"SPA\") with LG International Corp. (\"LGI\") to sell a 40 per cent. interest in the operating company for the NW Konys Field, Galaz and Company LLP (\"Galaz\"), for US$15.6 million (subject to state approval). Roxi has an indirect interest of 50.15 per cent. in Galaz through its 59 per cent. interest in Eragon Petroleum Ltd.\n \nHighlights:\n \n· SPA executed with LG International Corp.\n· GEBV will receive the US$15.6 million purchase payment on closing\n· Roxi loan of US$8.4 million repaid immediately\n· US$11.6 million loan to Galaz to finance existing debt and and ongoing operations \n· A further US$14.4 million loan available for Galaz work programme after closing\n \nGalaz\n \nFollowing state approval for the transaction, LGI will pay to GEBV US$15.6 million for a 40 per cent. interest in Galaz. GEBV will use the sale proceeds to repay US$5 million of a US$10 million outstanding loan to Kuat Oraziman, provide a loan to Roxi of US$8.7 million, to be repaid out of Roxi's share of future production and to settle the taxation arising out of profits made by GEBV on the sale.\n \nLGI will also advance a loan to Galaz of US$8.4 million, which will be r...