Kazakhstan oil and gas company joins AIM

A Kazakhstan-based company that was formed last year to develop oil and gas assets in Central Asia has joined AIM. Roxi Petroleum raised £38.9 million from the admission after its shares were priced at 38p each.

The admission, which was managed by nominated adviser and broker WH Ireland, valued the business at some £63.9 million.

Roxi will use the proceeds to build a portfolio of joint ventures in Kazakhstan, primarily previously discovered oil fields with development and exploration upside. A significant portion of the funds will be used to buy a 50% interest in two oil fields and one exploration block in the Caspian region of Kazakhstan.

Roxi’s chief executive, Rob Schoonbrood, said he is delighted the company has gained such positive support from the market for its development plans.

“With modern oil company management and technical work we believe there is considerable development and exploration upside available in multiple fields throughout the region.

“We believe that as Kazakhstan continues to develop its oil and gas infrastructure, more opportunities for development will come our way,” he added. “We will constantly evaluate new ventures, with the intention of becoming a significant company in the regional oil business and London AIM market.”

WH Ireland acted as nominated adviser and broker. “It has a first rate management team that are hugely experienced in the oil and gas business as well as operating in Central Asia,” director of corporate finance James Joyce said. “The company has acquired interests in some very exciting fields and we look forward to continuing working with the company as it seeks to expand further.”

Law firm McCarthy Tétrault, lead counsel to the transaction, provided English law advice to Roxi, led by partner Paul Airley. The firm was introduced to the deal by WH Ireland. Roxi was advised on Kazakh law by Denton Wilde Sapte.

Airley said this challenging transaction involved the acquisition of Kazakh assets and the structuring of the group, in addition to the AIM admission process.

“We are regularly involved with work of this nature,” he added. “We are very pleased to have advised Roxi on its successful AIM admission and fundraising, and have gained a great deal of experience of putting together deals in Kazakhstan. Roxi has strong management and a sound strategy and has been well received by the market.”

WH Ireland was advised by Richard Hildebrand, a partner at law firm Trowers & Hamlins. “Trowers & Hamlins was delighted to further its relationship with W.H. Ireland in acting on this relatively large fundraising on AIM and in particular in relation to a company with assets in a very exciting yet challenging part of Central Asia,” Hildebrand said.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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