ADA Oil

ADA Group is not currently an asset of Roxi Petroelum. But in October 2007, it did announce an option to buy a 50% stake in ADA and ADA Oil (together the ADA Group), which has significant, prospective acreage in Kazakhstan, and now very significant production. See this link:

http://www.roxipetroleum.com/PDFs/Rns041007.pdf

Further details of the ADA acreage is given here:

http://www.roxipetroleum.com/PDFs/RoxiEragonAcquisition0208.pdf Slides 20-22, and here
http://www.roxipetroleum.com/PDFs/Rns310108_4.pdf Pages 209-247

Part of the consideration was going to be Roxi shares at a value of 80p, later reduced to 65p. The credit crunch played its part in decimating the Roxi share price, so the deal did not go ahead. However, the deposit was never re-paid, and at the 2009 AGM, it was said that Roxi was interested in a deal for a part of ADA, but perhaps a different shape to the original one.

Here are other links about ADA. The first indicates that one discovery on Aktobe, where it suggests ADA has a stake, may have over 1bn barrels of reserves:

http://www.eia.doe.gov/emeu/cabs/kazaproj.html

The second indicates a discovery made on the block in 2006:

http://www.lgicorp.com/eng/ir/ir_news/news_view.jsp?txtGubun=Q&txtSeqNum=64

There has long been Korean interest in the assets of Roxi. For instance, Vision FMS from Korea was going to buy some of the Roxi shares issued as consideration for the Eragon acquisition and for the failed ADA deal.

Now, LG has expressed an interest in buying the Galaz asset.

Perhaps as significant is a recently announced deal whereby the Korean National Oil Company (KNOC) and LG have recently raised their stake in ADA Oil to 75% after a partial sale of assets from Vertom and other Kazakh holders:

http://209.85.229.132/search?q=cache:k5wrK1XZ4bIJ:www.securities.com/googlenews.html%3Fpc%3DKZ%26doc_id%3D230890976+ADA+and+LG+and+KNOC&cd=1&hl=en&ct=clnk&gl=uk

"Korean National Oil Corp. (KNOC) and LG International Corp. Purchased an additional 30% stake in the Ada oil block in Kazakhstan . The move increased their combine shareholding to 75%. Previously, KNOC and LG International held a 22.5% stake in the block each. In the recent transaction, the companies boosted their stakes by 17.5% and 12.5% respectively. The stakes were offered by Vertom and other shareholders due to problems in planned investment. Ada oil block is located in north western Kazakhstan . It is expected to producer 250,000 barrels of oil from the block by the end of this year. Next year, production is expected to rise to 750,000 bpd. Exploration of the block started in 2006. Its reserves are estimated at 170m barrels."

Interestingly, the seller was Vertom, which is one of the investment vehicles of Kuat Oraziman, one of the executive directors and major shareholders of Roxi Petroleum (RXP).

Is it possible that Roxi may sell the Galaz asset to LG perhaps as some part of the consideration for a stake in ADA?