Date Closed

November 24, 2008

Lead Office

London, UK

Value

27.00 Million USD

On November 24, 2008, Roxi Petroleum Plc completed a farm-in agreement with Canamens Central Asia Limited involving the disposal of up to 32.5% of a subsidiary, Ravninnoe Oil LLP, which holds 100% of an oil and gas exploration licence in Kazakhstan. Canamens have made an initial payment of US$5 million to acquire a 10% stake in Ravninnoe from the individual shareholder.

Canamens may elect to fund up to US$8.5 million towards work programme costs in respect of a well project which would, subject to Roxi shareholder approval, result in the transfer of an additional 22.5% of Ravninnoe (20% by Roxi and 2.5% by the individual shareholder). Canamens may elect to fund up to an additional US$8.5 million towards further work programme costs of Ravninnoe. Should the well project reach certain aggregate flow and oil price targets, Canamens would pay a bonus amount of US$5 million to the Roxi group. The aggregate of the possible consideration payments and the maximum drilling programme contributions give a total maximum deal value of $27 million US.

Roxi Petroleum plc is a Kazakhstan based oil and gas exploration and production company established in October 2006.

McCarthy Tétrault LLP advised Roxi with a team led by Paul Airley.