Roxi Petroleum nets $40m for drilling project in Kazakhstan

KAZAKHSTAN-focused Roxi Petroleum has attracted $40m (£25m) in new investment from a Kazakhstan investor, a move which saw its share price nearly double.

Kairat Alpamysovich Satylganov, a Kazakh businessman, will buy 355.2m new Roxi shares at 7p a share, marking a significant premium to the closing share price of 2.125p at the start of this week.

The investment will be used to fund the BNG licence area in Kazakhstan, where Roxi intends to drill three deep wells and three shallow wells.

Following the subscription, Satylganov, a former chairman of Kazakh banks Halyk Bank and ATF Bank, will hold a 37.5 per cent holding. The Kazakhstan businessman, who was also chairman of investment company Almex, will join the Roxi board.

The first $10m – representing around 14.57 per cent of Roxi’s share capital – will be paid on 31 January in exchange for the issue of around 88.8m new shares.

The AIM-listed firm is not subject to the UK Takeover Code, and Satylganov’s investment will not trigger an automatic takeover offer.

Roxi Petroleum chairman Clive Carver said yesterday that the investment “will take care of the funding needs of Roxi for the foreseeable future”. Shares closed up 94.12 per cent at 4.12p.

ADVISERS WH IRELAND

JAMES JOYCE
JAMES BAVISTER
WH IRELAND

Broker WH Ireland advised Roxi Petroleum on the equity investment, with head of corporate finance James Joyce and colleague James Bavister leading on the transaction.

Both have been involved previously with Roxi Petroleum.

Joyce, a chartered accountant, previously worked at Arthur Andersen and the London Stock Exchange. Prior to joining WH Ireland, he spent five years at a venture capital and corporate advisory firm.

Joyce has advised on a wide range of public and private transactions including IPOs, secondary fundraisings, code offers, M&A and private equity.

In the natural resources sector he has worked with a slew of junior stockmarket listed clients, including African explorer Goldplat and Vatukoula Gold Mines. Joyce was has also worked with Rare Earth Minerals.

Joyce is also an expert in the aviation sector and counts Australian carrier Skywest among his clients, as well as aircraft leasing companies Aviation PLC and Capital Lease Aviation.

Bavister was involved with the sale of The Fine Art Auction Group to Noble Investments last year. Alongside Joyce, he has also worked with Rare Earth Minerals, Capital Lease Aviation, Vatukoula Gold Mines.

WH Ireland is a prolific adviser to AIM-listed companies, and in September it rose to the third position of top advisers for junior stockmarket-listed firms, according to a report by Morningstar.

Its corporate finance team has experience in providing general advice and nominated adviser services, as well as pre-IPO fundraisings, secondary issues, M&A transactions and public offers.