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Roxi Petroleum secures £15 million GEM Global credit line

Published: 14:01 03 Jun 2009 BST

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Roxi Petroleum PLC (AIM: RXP) said it has entered into a £15 million equity line of credit with GEM Global Yield Fund Ltd and raised US$500,000 via the issue of 3,215,020 new shares at 10 pence each.

The Kazakhstan based oil exploration and development company said it will control the timing and the maximum amount of any draw down under the GEM credit line and is not obliged to draw on the funds on offer.

As part of the deal, Roxi has agreed to issue to GEM warrants to subscribe for up to 9 million shares at a price of 13.75p per share at any time over the next five years.

Updating on operations, it said the third of four wells has been successfully tested on the company's NW Konus field in the Galaz contract area. The well will be put onto a long-term 90 day test. The final well to be tested, NK4, is being worked over and scheduled for testing in June.

Acquisition of the 360 square kilometre 3D seismic programme over the Yelemes and Ayrshagyl areas of the BNG contract area was completed in May. Initial results of the processing will be available in June, with full results completed in the third quarter.


Chief executive Rob Schoonbrood said: “The GEM facility will provide reassurance to our trading partners that Roxi will be able to develop its assets as planned, meeting all our current commitments.”


“Following a tough year in capital markets, we believe that with this combination of new funding, and a positive outlook operationally, there is every reason for cautious confidence for the future,” he added.

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