- Canamens have exercised their option to acquire a further 12% of the BNG contract area for a consideration of $23m. This transaction means that the BNG work programme is fully funded for 2010. The Oil Barrel presentation indicates that 9 wells will be drilled on BNG this year, including 5 exploration wells and 4 appraisal/production wells. Roxi now holds 23.41% of the BNG asset.
- The most recent $3m convertible loan from Arawak Energy (now owned by Vitol) has been re-paid. This avoids the conversion of the loan into shares and thus also avoids shareholder dilution. The $3m has been provided by director Kuat Oraziman, and is repayable by 1 July 2010 - presumably from the funds that Roxi will receive once the Galaz deal completes. Shareholders must thank Mr Oraziman for his continued support of the company.
- Separately, Arawak has exercised a further 2m warrants at 10p each, providing £200,000 of funding to Roxi. According to my calculations, this leaves Arawak with 30,923,835 warrants, which must now be exercised at 15p, if before 30 September 2010, or 20p if between 1 October 2010 and 31 March 2011. This could be a significant source of funding for Roxi to finance further drilling on the Ravninnoe block.
- The proposed transaction with LG International to acquire a stake in the Galaz block is progressing well
Unfortunately, a number of other operational matters were not covered in the RNS so we are no further forwards on understanding:
- The test results from Well #20 at Ravninnoe - we are awaiting oil flow rates from this well
- The results of the perforation of the well at South Yelemes
- If any of the appraisal oil wells at South Yelemes have spudded
- The test results of well NK22 on Galaz
Update: It was announced on 1 April 2010 that Altius Energy (formerly known as Arawak Energy) has exercised a further 1.6m warrants at 10p. According to my calcuations,this brings Altuis' warrant holding down to 29.3m
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