Transition to Production
Roxi Petroleum Plc
Annual Report and Accounts 2011
Annual Report and Accounts 2011
Registered Office and 
Business address 
4th Floor 
Haines House 
21 John Street 
London  
WC1N 2BP About Roxi
Roxi has interests in four oil assets in Kazakhstan. One has 
already commenced production and production from another two 
is expected later in the year.
Between now and the end of the year, a further two deep wells 
and four shallow wells are planned.
BNG 
2 
Operating wells
Beibars 
167km
2
 
Exploration acreage
Galaz 
4 
Operating wells
Uralsk
Atyrau
Kyzylorda
Shymkent
Taraz
Almaty
Karaganda
ASTANA
Pavalodar
Ust Kamenogorsk
Munaily 
1 
Operating well
 City
 Exploration
 Discovery
 Production
01 Highlights
02 Year in Review
02 Review of Operations
05 Glossary
06 Timeline
08 Business Review
08 Chairman’s Statement
10 Chief Executive’s Statement
14 Governance
14 Board of Directors
16 Directors’ Report and Business Review
20 Remuneration Committee Report
23 Report on Corporate Governance
24 Financial Statements
24 Independent Auditors’ Report
25 Consolidated Income Statement
26 Consolidated Statement of Comprehensive Income
27 Consolidated Statement of Changes in Equity
28 Parent Company Statement of Changes in Equity
29 Consolidated and Parent Company Statement  
of Financial Position
30 Consolidated and Parent Company  
Cashflow Statements
31 Notes to the Financial Statements
68 Company Information
Roxi Petroleum plc 
Annual Report and Accounts 2011 69
Business Review Year in Review Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Governance Company Information Financial Statements Roxi Now
6
1
2
3
4
5
Value 
Creation
Roxi Petroleum plc 
Annual Report and Accounts 2011 01
Business Review Year in Review Governance Financial Statements Company Information Highlights
Highlights
2011
•	 Loss after taxation of US $ 9.4 million
•	 Completion of US $ 50 million Galaz farm-out with LGI
•	 Cancellation of deal with Canamens resulting in return  
of 35% effective interest in BNG LLP to Roxi
•	 US $ 23.6 million of loans previously due to Canamens 
being novated to Roxi in exchange for 1.5% royalty 
payable by Roxi to Canamens based on future 
production from BNG LLP
2012 to date
•	 Signing of US $ 30 million BNG farm-out with KNOC
•	 Vertom Loan facility increased to US $ 7 million loan 
•	 First oil production revenues as pilot production 
commences on Galaz
2011
•	 Extension of licence area of Galaz granted
•	 NW Konys (Galaz) licence extended for 2 years to May 2013
•	 Airshagil (BNG) licence extended for 2 years to June 2013
•	 Completion of NW Konys reservoir study (Galaz)
•	 Initial (time) processing of 1400 km
2
 3D seismic cube 
completed on BNG
•	 37 prospects and leads mapped at depths of 1700m to 
5000m on BNG contract area 
•	 Gaffney Cline completed technical audit of 202 mmbbls 
risked resources on BNG and 13 mmbbls of most-likely 
contingent resources on South Yelemes
•	 Well 136 drilled on North Yelemes to 2900m pending 
testing and evaluation
•	 Wells NK-9 and NK-10 drilled on NW Konys to 1500m
•	 Pilot production licenses and emissions licences granted 
for South Yelemes and NW Konys 
2012 to date
•	 Preparation, tendering and construction of facilities at NW 
Konys and South Yelemes to commence pilot production
•	 Well NK-6 commences pilot production on NW Konys 
(Galaz) at an average production rate of 155 bpd
•	 Spud NK-7 well on Galaz
Financial Highlights Operational Highlights
1
  Acquisiton of Exploration Acreage
2
  
IPO / Farm Out
3
  
Exploration
4
  
Reserves Discovery
5
  
Production – Domestic Sales
6
  
Production – Export Sales
Develop Reserves Base Roxi Petroleum plc 
Annual Report and Accounts 2011 02
2  
Operating wells
58.41%  
Roxi Interest
1,561km
2  
Area
1,376km
2
  
Seismic coverage
Review of Operations
BNG Contract Area, South Pre-Caspian Basin, Western Kazakhistan
Lwr Cretaceous
Primary Reservoir Target BNG Prospects and Leads
Lwr Permian (Kung)
Triassic
Lwr Permian (Art-Asset)
Mid Carboniferous Karst
Mid. Carb Basinal
Jurassic
BNG Contract Area is located in the west of Kazakhstan 40 
kilometres southeast of Tengiz on the edge of the 
Mangistau Oblast, covering an area of 1,561 square 
kilometres. Roxi resumed full control of BNG Ltd LLP in the 
second quarter of 2011 after the announcement of 
Canamen’s withdrawal from the contract. This caused a 
temporary delay to operations while BNG was reorganized 
following the departure of Canamen’s staff. Following this, 
a significant effort was made by Roxi to find new farm-in 
partners in the second half of the year.
In January 2011, Roxi had commissioned Gaffney Cline and 
Associates (GCA) to undertake an independent audit of the 
prospects identified by the Company on the 2009 and 2010 
1,500 square kilometres 3D seismic acquisition. A large 
portfolio of 37 prospects and leads has been compiled by 
Roxi with a combined gross resource potential of 900 million 
barrels audited by GCA.
The Company has gained a good understanding of the 
regional geology from the extended 3D seismic acquisition, 
and has identified several significant exploration plays on the 
block. Foremost are the prospects mapped in the Lower 
Permian along the margin of the South Emba High. These 
are direct analogues of neighbouring Tolkyn field, which 
contains approximately 70 million barrels initial reserves. It 
should be noted that the current poor production from 
Tolkyn field is believed by the Company to be due to 
reservoir management issues over the last 5 years rather 
than reservoir performance. Therefore, the Company 
understands that there is enormous potential in these 
carbonate targets, and they can be drilled for a modest cost. 
Roxi has mapped one Tolkyn type prospect, which is ready 
to drill, with two further leads available.
The Company has also identified a new exploration play in the 
middle Carboniferous of the South Emba Sub-Basin. Multiple 
discreet carbonate fans have been mapped, shed off the 
South Emba high. These reservoirs now sit at depths of 
4,500m to 5,800m, and have been confirmed, by Soviet 
drilling, to be hydrocarbon bearing. Key to drilling these 
targets will be the identification of sweet spots where porosity 
and permeability are well developed. Resource volumes of 
60-80 million barrels are estimated in these prospects.
A third play has been identified in deep Devonian through 
to Middle Carboniferous Carbonates in the North of the 
area. The carbonates are a similar age to Tengiz but in the 
form of small 10-20 square kilometres fringing, atoll, ribbon 
reefs, with tallus reef plays. This type of exploration play 
has been speculated to exist on the southern flank of the 
Guriyev Arch for many years but has never been identified 
and imaged in detail.
Another interesting outcome from the 3D seismic was the 
detailed imaging of the karstified surface of the South Emba 
High. The seismic has revealed deeply buried sinkholes and 
potholes in the Carbonate platform which are directly 
analogous to the Bekbolat reservoir underlying Tasym field a 
few kilometres from the block boundary. Six small structural 
prospects have been identified in close proximity which have 
Most Likely combined resources of 58.5 million barrels 
recoverable. Although requiring proven modern drilling 
techniques to successfully drill, these reservoirs are 
potentially high productivity, and represent attractive 
exploration targets. 03
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
 Exploration
 Discovery
 Production
Galaz Contract Area, Turgai Basin, Central Kazakhstan
4  
Operating wells
34.22%  
Roxi Interest
179km
2  
Area
30km
2
  
Seismic coverage
NW   Konys
Konys Field
License 
Extension
Galaz block is located in the Kyzylorda Oblast in central 
Kazakhstan. The Contract area was extended on 10 January 
2011 to 179 square kilometres and now includes significant 
exploration upside on the east side of the Karatau fault 
system, as well as the NW Konys development.
The year 2012 began with notification of approval of the NW 
Konys Pilot Production Plan from the Ministry of Oil and Gas, 
with emissions and flaring permits received from the 
authorities over the following 12 months. During this period, 
the Company commissioned a Reservoir Study undertaken by 
Schlumberger. The report provided the Company with a 
development strategy for the Jurassic channel sands, 
developing the southern channel first under aquifer support. 
Following the results of the study, Galaz completed the 
design, approval, and procurement procedures for 2 wells on 
the southern Channel. Wells NK9 and NK10 were drilled in 
November and December of 2011 and well NK7 was spudded 
in April 2012. A further 3 appraisal wells are planned for 2012.
Final Production consent was received at the end of 2011  
and the first well NK6 was put on production in January 2012. 
The oil is currently sold domestically and delivered to 
neighbouring operator KAM for processing and 
transportation, however, the pilot development plan will 
include infield storage and processing of the oil which is 
planned in 2013. 
In the newly extended acreage, Galaz has identified a 
structural prospect on old 2D seismic, along the east side of 
the Karatau fault. The Company is preparing to shoot a high 
resolution 3D survey to map this complex structure and 
identify Jurassic channel sands.
BNG Contract Area continued
Operationally the Company has now completed a four-well 
programme to test Jurassic targets in the north of the block.  
Well 135 was drilled in January and February 2011 to a depth 
of 2,950m with the objective of testing multiple stacked 
reservoirs from the Cretaceous and Jurassic on a small 4 way 
dip closure. The well encountered only shows and was 
plugged and abandoned. After re-evaluation of the seismic it 
was concluded that structure was in fact cut by minor faulting 
and was therefore breached. This information will be used for 
the de-risking of future Jurassic and Cretaceous prospects. 
In December, BNG spudded well 136 to test middle Jurassic 
and Triassic sands in a newly mapped fracture play to the 
northwest of well 135. At the time of writing, the well has 
been cased and suspended with oil shows for further 
evaluation in 2012.
South Yelemes is now in a position to commence pilot 
production from wells 54 and 805, at approximately 250 bopd. 
The timing of this and of further pilot development of South 
Yelemes will be decided after completion of the Farm-out. Roxi Petroleum plc 
Annual Report and Accounts 2011 04
Review of Operations continued
Roxi acquired a 50 per cent interest in Beibars Munai 
LLP in 2007, which operates the 167 square kilometre 
Beibars Contract area on the Caspian shoreline south  
of the city of Aktau. While acquiring 3D seismic in  
2008 the Contract was put into Force Majeure when  
the acreage was allocated as a military exercise area 
(Polygon), by the Ministry of Defense. Since this time  
no operations have been carried out, and Roxi operates 
a care and maintenance administrative budget on  
the project.
The Company plans to resolve the access issue with the 
army in due course and then seek farm-in partners to 
explore Beibars contract area.
Caspian 
Sea
Imasha Field
Beibars Contract Area, Mangishlak Basin, Western Kazakhstan
Millions of barrels
Contract 
Area
Property 
Gross 
Roxi 
Net Interest
Galaz Proven 2.4 0.8 34.22%
Probable 5.1 1.7 34.22%
Possible 3.4 1.2 34.22%
BNG Contingent Resources(Best) 12.7 7.4 58.41%
Prospective Resources(Best) 904.0 528.0 58.41%
Total Proven 2.4 0.8
Probable 5.1 1.7
Possible 3.4 1.2
Contingent Resources (Best) 12.7 7.4
Prospective Resources (Best) 904.0 528.0
Hyunsik Jang, Chief Operating  
Officer of Roxi Petroleum, has 
reviewed and approved the 
technical disclosure in this 
announcement. He holds a  
BSc in Geology and has 26  
years international experience  
of exploration, appraisal, and 
development of oilfields in a  
variety of environments.
Reserves and Resources Summary Table
Qualified Person
50%  
Roxi Interest
Munaily field is located in the Atyrau Oblast approximately  
70 kilometres southeast of the town of Kulsary. The field was 
discovered in the 1940s and produced from 12 reservoirs in  
the Cretaceous through to the Triassic, Roxi acquired a 58.41 
per cent interest of the 0.67 square kilometre rehabilitation 
block in 2008, and funded two wells and one well re-entry. 
After the cancelled sale of Munaily to BT Corporation,  
Roxi resumed control of Munaily in the fourth Quarter 
2011, and started preparations for the necessary 
permitting and surface facilities to bring well H1 onto 
production in 2012. Approval has been received from the 
Ministry for Munaily to enter the Commercial Production 
Period of the contract. Once production has commenced 
from H1, four further wells are planned in 2012/2013 to 
develop the 1.2 million barrels of bypassed reserves 
currently estimated on the field.
Munaily Contract Area, Pre-Caspian Basin, Western Kazakhstan
58.41%  
Roxi Interest 05
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
SPE – The Society of Petroleum Engineers
Glossary
Proved Reserves
Proved Reserves are those quantities of petroleum which, 
by analysis of geosciences and engineering data, can be 
estimated with reasonable certainty to be commercially 
recoverable, from a given date forward, from known 
reservoirs and under defined economic conditions, 
operating methods, and government regulations. If 
eterministic methods are used, the term reasonable 
certainty is intended to express a high degree of 
confidence that the quantities will be recovered. If 
probabilistic methods are used, there should be at least a 
90% probability that the quantities actually recovered will 
equal or exceed the estimate.
Probable Reserves
Probable Reserves are those additional Reserves which 
analysis of geosciences and engineering data indicate are 
less likely to be recovered than Proved Reserves but more 
certain to be recovered than Possible Reserves. It is 
equally likely that actual remaining quantities recovered will 
be greater than or less than the sum of the estimated 
Proved plus Probable Reserves (2P). In this context, when 
probabilistic methods are used, there should be at least a 
50% probability that the actual quantities recovered will 
equal or exceed the 2P estimate.
Contingent Resources
Contingent Resources are those quantities of petroleum 
estimated, as of a given date, to be potentially recoverable 
from known accumulations, but the applied project(s) are 
not yet considered mature enough for commercial 
development due to one or more contingencies. Contingent 
Resources may include, for example, projects for which 
there are currently no viable markets, or where commercial 
recovery is dependent on technology under development, 
or where evaluation of the accumulation is insufficient to 
clearly assess commerciality. Contingent Resources are 
further categorized in accordance with the level of certainty 
associated with the estimates and may be sub-classified 
based on project maturity and/or characterized by their 
economic status. Roxi Petroleum plc 
Annual Report and Accounts 2011 06
•	 Project Facility Design for South 
Yelemes approved
•	 Announce interim half year results
•	 Spud 1
st
 appraisal well on NW 
Konys field
•	 Water injection well on NW Konys
Timeline
•	 Notification on the Pilot Production for Galaz  
and BNG received
•	 Full consideration of US $ 15.6 million for the  
sale of 40% interest in Galaz to LGI received
•	 Well NK 20 shows oil encountered over  
three intervals
•	 Successful amendment of BNG work program 
for the period June 2007 to June 2011
•	 Final approval from government authority to sell 
40% interest in Galaz to LGI
•	 BNG Well 135 on North Yelemes – dry hole
•	 Confirmation of two year extension to SSUC  
for NW Konys received
•	 Confirmation of extension to SSUC 
for BNG
•	 Emissions Permits granted for 
Pilot Production on NW Konys
•	 Start pilot production at NW Konys
•	 Canamens announced reduction 
in funding commitment
•	 90 day test production from  
BNG Well 805
•	 Resource estimate for BNG contractual 
area by Gaffney Cline & Associates
•	 Project Facility Design for South Yelemes 
finished and sent to authority
•	 Seek additional financing arrangements 
for BNG
•	 Annual General Meeting
•	 Water injection permit for Galaz
January
February
July
August
March
April
May
September
June
October
•	 Spud 2
nd
 appraisal well on NW  
Konys field
•	 Emissions Permits granted for Pilot 
Production on South Yelemes
•	 Pilot production start up South 
Yelemes field
•	 Spud 3
rd
 appraisal well on NW 
Konys field
•	 Preparation for field facilities 
construction on Galaz Contract area
November
December
2011 07
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
•	 Release Interim Financial Report to 
30 June 2012
•	 BNG commence drilling 2
nd
 deep 
exploratory well
•	 Well results from two BNG 
deep wells available
•	 BNG commence drilling post 
salt well on southern area
•	 Approval for gas flaring for the period 2012 to 
2014 for Galaz received
•	 Pilot Production from the NW Konys field  
achieved a rate of approximately 225 bopd
•	 Galaz NK-9 well test completion
•	 Signed SPA for BNG farm-out 
deal with KNOC
•	 Tendering for deep well drilling  
on BNG
•	 Galaz NK-10 well testing
•	 Galaz spudding NK-7 well
•	 Galaz drill 2 appraisal wells
•	 Release Annual Report and Accounts 
for 2011
•	 Munaily drill production well
•	 BNG #54, #805 well work over
•	 Hold Annual General Meeting in London
•	 Galaz drill 1 exploration well
January and February
May
June
March
April
August
2012
•	 BNG commence 1
st
 deep exploratory well
•	 BNG #806 well test and evaluate
July
September and October
November and December Roxi Petroleum plc 
Annual Report and Accounts 2011 08
Chairman’s statement
The two fundamental issues at the start of 2011 were finding a 
replacement farm-out partner at BNG and securing the 
required regulatory consents to allow production at our three 
principal assets.
BNG Farm-out & related funding issues
As reported in the interim statement in May 2011, we 
negotiated the cancellation of the previous BNG farm-out 
arrangements with Canamens NV, following their decision  
to withdraw from Kazakhstan. This resulted at the interim 
stage in an accounting profit of some US $ 39 million. A 
further US $ 10 million was credited to the profit & loss 
account following the completion of the US $ 50 million 
LG farm-in at Galaz.
Throughout 2011, we continued the planned development 
work at BNG as using the unspent funding from Canamens 
and then funding provided by Mr Oraziman, a director of the 
Company and its largest shareholder.
Consequently, the short term debt to Mr Oraziman and 
companies associated with him rose to a level the independent 
directors considered unsustainable. As a result we announced 
in late September 2011, with the agreement of Mr Oraziman 
and in consultation with the Company’s nominated adviser 
Strand Hanson to convert some US $ 9.4 million of the short 
term debt into 188,771,895 new Roxi shares.
In March 2012, we announced that the Korean National Oil 
Corporation (“KNOC”) had agreed to become our partner at BNG 
and had acquired a 35 per cent interest in the BNG Contract Area 
for an initial consideration of US $ 5 million and a US $ 25 million 
contribution to the BNG work programme ahead of the next 
planned Contract Area licence extension due in June 2013.
We are delighted to be working with such a prestigious 
partner. Completion of the farm-in is dependent, inter alia, 
upon the receipt of the required regulatory consents.
Regulatory consents
For several years the pace of development across our 
portfolio of assets was slower than we would have wished, 
principally as a result of the delays in securing the required 
regulatory consents. 
In this respect we are in the same position as other 
Exploration and Production companies operating in 
Kazakhstan. During the lengthy application process the 
regulatory framework was recast with new ministries and 
complex new laws were introduced.
Nevertheless, in December 2011, we were awarded the final 
permissions, which were the gas flaring permits for BNG and 
Galaz, to allow drilling for pilot production. Drilling activities 
commenced at Galaz in December 2011 and at BNG in 
January 2012.
Despite a very cold winter in Kazakhstan, we have drilled  
three wells all of which are currently being evaluated. We 
commenced pilot production at Galaz in January 2012 and 
expect pilot production to commence at BNG and full 
commercial production at Munaily later in 2012.
Although the production levels are low, having production  
at our three principal assets and having leading multi-
national farm-out partners at BNG and Galaz marks a 
transformation for Roxi from a struggling exploration 
company at the beginning of 2011 to a company which  
we expect will produce at increasing rates as oil starts  
to flow from new wells.
A fuller account of the development work at our assets and 
the terms of the KNOC farm-out at BNG are contained in the 
Chief Executive’s statement on page 10.
Future strategy
Given the Company’s financial constraints the Board does not 
believe now is the time to consider investing in new assets. 
Accordingly, for the time being, all our available resources will 
be focused on our current projects.
Roxi has signed farm-out deals on its two principal assets, 
BNG and Galaz. Its other asset capable of early production, 
Munaily, already has a 15 year production license and will not 
require significant Roxi input to develop. Production has 
already started at Galaz and is expected at BNG and Munaily 
later in the year. This is a position Roxi’s board has been 
working towards for several years. 
Once the BNG farm-out has completed, all the significant day 
to day operational, regulatory and financial management 
activities at BNG and Galaz will be handled through the 
farm-out vehicles supervised by our farm-out partners. Roxi’s 
interests will be safeguarded by representation on the various 
Joint Operating Committees and by its involvement and 
consent to all significant additional capital costs.
The skill and resource base required to manage these assets 
as operator and to find, negotiate and conclude farm-out 
deals is not the same as that required to monitor 
developments as a junior farm-out partner. Your Board has 
therefore decided that Roxi can and should for the time being 
be run on a much reduced cost basis.
I am pleased to report that your Company made very significant advances 
in 2011 and has continued to do so in the early months of 2012.  09
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Members of the executive management team have agreed to 
take significant reductions in pay and there is underway a 
thorough review of all ongoing costs with a view to 
establishing a lean organisation capable of safeguarding 
Roxi’s commercial interests but at an affordable cost.
Management changes
David Wilkes has agreed with the Board that he will transition 
his CEO responsibilities to Mr Oraziman, the Company’s 
largest shareholder and principal funder over the past few 
years, who has been an executive director since 2008 and 
who will become CEO, effective on 1 June 2012. David will 
remain with the Company until September 2012 and during 
this period will transition his CFO responsibilities to myself, 
who will become an Executive Chairman on 1 June 2012, 
taking on, at board level, the financial management 
responsibilities, with Edmund Limerick becoming the senior 
Non-Executive Director. David will then become a consultant  
to the Company with effect from 1 October 2012.
Mr Hyunsik Jang will remain as Chief Operating Officer,  
taking the leading technical role in dealings with our farm- 
in partners.
David Wilkes
I would like to take this opportunity to pay tribute to the 
excellent job David has done for Roxi. He joined the Company 
in 2009 as Chief Financial Officer and became Chief Executive 
Officer at the start of 2010, retaining most of the 
responsibilities as CFO.
David joined during a period of upheaval when companies 
such as Roxi found investor appetite for early stage 
exploration companies had faded and new funding from 
traditional financial investors had dried up. By that stage Roxi 
was committed to develop its assets according to existing 
work programme commitments.
He led the Company through several rounds of necessary cost 
cutting, which stabilised the expenditure but more importantly 
he led the Company through the complex farm-out 
negotiations on Galaz and BNG and then again at BNG after 
Canamens had decided to withdraw from Kazakhstan.
Throughout this period, David had to contend with significant 
structural changes to method regulation of the oil & gas 
industry in Kazakhstan and to changes to the tax 
environment. David displayed an exemplary professional 
approach in dealing with the issues at hand during what have 
been arguably the most difficult three years of Roxi’s brief 
existence. The Company is now in a far stronger position than 
when he first joined it and should be justifiably proud of his 
achievements. I am also very pleased that David will continue 
as a consultant to the Company going forward.
Employees
As in previous years I would like to thank our employees for 
their sustained hard work and commitment during what have 
been difficult times.
Outlook
As a result of the successes noted above I believe we are  
in a stronger position now than we have been at any time  
over the past few years. Clearly our future success depends 
on achieving further operational success. However, as 
production increases across our asset portfolio our funding 
options should widen.
We will look to leverage on the operational and financial 
strengths of our farm-out partners KNOC and LGI to increase 
shareholder value and to report further operational successes 
as they arise.
Clive Carver
Chairman
8 May 2012 10
Roxi Petroleum plc 
Annual Report and Accounts 2011
Chief Executive’s statement
Update
Roxi’s effective interest in the following assets was as follows:
Asset
Interest at  
1 January 
2011
Interest at  
31 December 
2011
BNG Ltd LLP 23.41% 58.41%
Galaz and Company LLP 57.82% 34.22%
Munailly Kazakhstan LLP 58.41% 58.41%
Beibars Munai LLP 50% 50%
We are very close now to achieving our primary goal of 
transitioning three of our assets into production. Galaz was 
our first asset to commence production in January 2012. The 
revenue from future production will help finance the ongoing 
fixed costs as well as contribute towards the development 
costs of each of the assets going forward. This represents  
a significant milestone for Roxi and will significantly  
reduce the financial risks associated with being a purely 
exploration company during a period of volatility within  
world financial markets. 
BNG
We faced some challenges on BNG during 2011, with our 
partner Canamens deciding to withdraw from Kazakhstan  
and its participation in BNG, having invested approximately  
US $ 38 million into exploring one of the smaller prospects on 
the BNG acreage, South Yelemes. Canamens departure in the 
first quarter 2011 resulted in Roxi’s effective interest in BNG 
increasing from 23.41 per cent to 58.41 per cent, yet at the 
same time it left us with a shortfall in funding for BNG for 
2011. Roxi sought additional short term funding from one of 
its shareholders, Vertom International BV, to continue with the 
exploration and development of Yelemes, until such time that 
we secured an additional farm-in partner for BNG.
In March 2012, we agreed terms on the farm-out of a 35 per 
cent interest in the BNG license to a subsidiary of the Korean 
National Oil Company (“KNOC”). The deal encompasses  
US $ 30 million being invested of which US $ 5 million will  
be paid to BNG LLP, the current operator of the Airshagil 
license and subsidiary of Roxi, with a further US $ 25 million 
funding being provided to finance the current license 
obligations, including the drilling of two deep pre salt back 
to back wells on the license area. At the same time, KNOC 
will enter into an option and pledge agreement over 32 per 
cent of the interest in Galaz (‘the Galaz interest”). KNOC will 
have the option to elect to transfer its interest from 35 per 
cent of BNG to 32 per cent of Galaz, but only after fulfilling 
its funding obligation towards the BNG work obligation. 
Should KNOC elect to exercise their option for the Galaz 
interest, there will be an associated option price of US $ 5 
million that will have to be paid as consideration to Galaz 
Energy BV, a subsidiary of Roxi. 
This represents a significant deal for Roxi and we welcome 
KNOC as partners to this strategic project for us. KNOC will 
be appointed as operator over our joint interest in the BNG 
contract area. This farm-in arrangement will enable us to 
explore some of the deeper prospects within the BNG 
territory where we believe the greater potential and value 
exists for our shareholders.
BNG engaged Gaffney Cline & Associates (“GCA”) to 
undertake a technical audit of the BNG license area and 
subsequently PGS to undertake depth migration work, 
based on the 3D seismic work carried out in 2009 and 
2010. The work of GCA resulted in confirming total unrisked 
resources of 900 million barrels from 37 prospects and 
leads mapped from the 3D seismic work undertaken in 
2009 and 2010. The report of GCA also confirmed risked 
resources of 202 million barrels as well as Most-Likely 
Contingent Resources of 13 million barrels on South 
Yelemes. The depth migration work that was carried out by 
PGS enables BNG to gain a greater understanding of some  
of the deeper prospects yet to be explored. BNG now 
plans, together with its new partner, KNOC, to drill two 
pre-salt wells into the deeper horizons as part of its  
current work obligation, where we believe the greater 
potential in BNG exists.
BNG recently received the necessary licences to permit pilot 
production to commence and is now in the process of putting 
facilities in place to re-commence production from wells 54 
We have now achieved the transition from exploration to 
production and along with our new partners LGI and KNOC,  
are looking forward to developing our core assets to bring 
further value to our shareholders 11
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
and 805 that discovered oil on South Yelemes in 2010. Both 
these wells were drilled and tested before being shut in 
pending receipt of the required licenses to commence pilot 
production. The wells previously flowed at 70 and 140 bopd 
during the period of test production. In February 2012, BNG 
completed the drilling of well 136 to a test depth of 3,008 
metres and completed the wire logging. Oil shows were 
encountered between 2,442 and 3,008 metres. The evaluation 
and testing of well 136 and the commencement of pilot 
production on South Yelemes will be completed by our  
new operator for BNG, KNOC.
Galaz
As a result of the completion of the farm-out deal with LG 
International (“LGI”) in the first quarter 2011, our effective 
interest in Galaz reduced from 57.82 per cent to 34.22 per 
cent, with LGI obtaining a 40 per cent interest in Galaz in 
return for a US $ 50 million deal, comprising a combination  
of assigned debt, future funding and purchase consideration 
to Roxi. Secondly, LGI completed a reservoir study with 
Schlumberger and have since developed a drilling program 
that will prioritise drilling appraisal and exploratory wells to 
enable further reserves to transition from P2 to P1 
classification. The first two of the planned new appraisal wells 
were drilled in December 2011, to a depth of 1,500 metres. 
Although the results from testing these two wells were 
disappointing, it did provide some useful information on the 
reserves in place on NW Konys. We have recently spudded 
well NK 7 in the North Channel and we are expecting that this 
will bring more positive news for Galaz.
Galaz also received all licenses necessary to permit pilot 
production to commence, enabling Galaz to put well NK-6 
into production in January 2012. Average production from this 
well has been 155 bopd to date. This well was one of five wells 
drilled in 2009, when oil was first discovered on NW Konys. 
Oil production is currently being transported to one of our 
neighbouring fields, where it is sold at domestic oil prices until 
such time as production increases to levels sufficient to export. 
Other assets
Roxi’s other assets comprise interests in Beibars (50 per cent) 
and Munaily (58.41 per cent). At Beibars the military polygon 
is still reserving use of the field for exercises. We have applied 
for existing exploration license to be extended, given that our 
ability to complete works at the territory have been impaired 
by the force majeure situation. We plan to farm-out part of our 
interest in Beibars to an investor willing to fund the drilling of 
exploratory wells that will enable us to assess the potential of 
this asset once the military use has been removed.
After a long period of negotiation on Munaily, Roxi came to an 
agreement to cancel the sale of its interest to the previous 
buyer, BT Corporation. This enabled Roxi to retain its effective 
interest of 58.41 per cent in Munaily. In return, Roxi agreed to 
return all funds paid by the former buyer, including an amount 
for the cost of the well the buyer drilled on Munaily in 2009. 
Roxi financed this by obtaining a loan of US $ 2.5 million from 
one of its shareholders, Radite NV. This loan is secured against 
a 30 per cent interest in Munaily. Munaily has a 15 year 
production licence in place and the Company plans now to 
commence production from its well H1 after installing facilities 
in the field. The well previously flowed at 80 bopd during its test 
production phase. In addition, the Company plans to drill a 
further 4 production wells over the next two years. 
Financing Arrangements
We faced some difficult challenges in 2011 to fund the 
ongoing work programme on BNG with our partner Canamens 
taking the decision to exit operations from Kazakhstan early 
in the year. With no external institutional debt on the balance 
sheet we were able to negotiate a series of short term funding 
arrangements with our principal shareholder, including 
converting some of his existing debt to equity, to help 
navigate the business to a point where we could secure a new 
farm-in partner for BNG as well as ensuring we continued to 
meet our ongoing work obligations on this core asset. This 
enabled us to commence the drilling of well 136 in the final 
quarter 2011 and start putting in place facilities to commence 
pilot production. 12
Roxi Petroleum plc 
Annual Report and Accounts 2011
These ongoing financing challenges have led the Board to 
reconsider what further restructuring is needed to ensure the 
business is able to sustain its activity until production 
commences across all its assets. The Chairman has indicated 
in his report that the Board plans to undertake management 
restructuring, through a combination of changing roles or 
implementing pay cuts at this critical juncture for the 
Company. I fully support these changes as I believe they will 
enable the Company to successfully transition to production 
and ensure a self financing business model is achieved. 
In addition to these initiatives, the recent US $ 30 million 
farm-out of interest in BNG to KNOC will provide the 
additional financing needed for BNG and its partner to 
complete the required work programme on the BNG license 
for the period to June 2013, as well as meet some of the 
working capital needs of the group. On 30 April 2012, Roxi 
negotiated an increase in the loan facility arrangement with 
Vertom International NV to US$ 7 million. This will be used to 
finance the ongoing work obligations on Galaz and Munaily  
as well as the ongoing reduced working capital needs of the 
Group. These initiatives will permit the Company to sustain  
its activities through the end of 2013.
Financial Highlights
The Consolidated Income Statement on page 25 still  
reflects the fact that we have historically been an exploration 
company with little commercial production to date. The 
results have also been impacted by the fair value adjustments 
made on the farm-out deals completed on BNG with 
Canamens and KNOC, as well as the cost of share based 
payments and ongoing administrative costs which resulting  
in a net loss of US $ 9.5 million being recognised during the 
period. We continue to drive cost efficiencies into our 
corporate structure and whilst we expect our share of costs 
associated from our joint venture interest to increase as 
operations there develop, overall we plan to reduce costs 
through further restructuring.
Our aim going forward, as we move to production, is to 
continue to work on cost reduction initiatives as well as to 
increase top line revenues as pilot production commences 
from three of our assets, of which production has already 
commenced on Galaz in January 2012.
Social Programmes
Under Kazakh regulations part of our obligations under 
various work programmes on the assets in which we have an 
interest are paid in the form of contributions to local social 
programmes. In 2011, Roxi made significant contributions to: 
•	 Kyzylorda region social fund US $ 302,500 (Galaz); and
•	 Mangistau regional social obligation fund US $ 33,700 
(BNG).
These contributions, while mandatory, help secure the good 
standing of the Company with the local regional authorities 
and with centrally based regulators. Roxi is pleased to have 
assisted in the developments of these projects. 
Environmental
No significant environmental issues have arisen at any of the 
properties acquired to date. Compliance with environmental 
regulatory bodies is being managed from both the Aktau and 
Almaty offices.
Kazakhstan
Kazakhstan continues to develop and is constantly amending 
its legal framework and tax legislation to achieve the right 
balance between the State and the need to encourage new 
investment into Kazakhstan and from existing companies 
who conduct business in Kazakhstan. Operating in 
Kazakhstan in such times of evolution can from time  
to time present difficulties. 
As a Kazakh based operation, with a majority of Asian 
investors we believe we are ideally placed to deal with any 
issues as they arise and see this as a competitive advantage 
compared with some of the difficulties being encountered by 
other less integrated international companies.
Chief Executive’s statement continued
The forthcoming drilling campaign to be undertaken on both Galaz 
and BNG will represent the next key milestone events for Roxi, 
which if successful, could significantly improve Roxi’s fortunes. 13
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Outlook
With the restructuring initiatives in place and with the 
successful completion of the farm-out of our BNG interest  
to KNOC, this should bring more stability to Roxi’s operations 
going forward. The forthcoming drilling campaign to be 
undertaken on both Galaz and BNG will represent the next 
key milestone events for Roxi, which if successful, could 
significantly improve Roxi’s fortunes.
Finally, I would like to thank my team at Roxi for their 
commitment and loyalty to the organisation, without which  
we could not have achieved our successes to date.
David Wilkes
Chief Executive Officer
8 May 2012  14
Roxi Petroleum plc 
Annual Report and Accounts 2011
Board of Directors and Senior Management
Clive Carver (aged 51)
Non-Executive Chairman
Clive Carver qualified as a chartered 
accountant with Coopers & Lybrand in 
London in 1986. Since then he has 
focused on the corporate finance and 
corporate broking arena, including 
working for Kleinwort Benson and Price 
Waterhouse Corporate Finance.
He spent five years at Seymour 
Pierce, where he was a director and 
head of corporate finance, and six 
years at Williams de Broë, where he 
was head of corporate finance and 
corporate sales. At Williams de Broë 
he led the team floating and fund 
raising for a number of natural 
resource companies. Until October 
2011 he was head of corporate 
finance and a founding shareholder 
at FinnCap, a London based financial 
advisor and broker. He is non-
executive chairman of Lochard 
Energy Plc and of X Cap Securitis 
Plc, a London-based stockbroker.
David Wilkes (aged 49)
Director and Chief Executive Officer
David joined the Board of Roxi on  
1 October 2009, from Ernst & Young 
where he was a partner in the Almaty 
office and was most recently the 
partner responsible for advisory 
services in Kazakhstan. David has  
over 25 years commercial experience, 
including eight years as Managing 
Partner of Ernst & Young Kazakhstan, 
nine years of practice in London,  
two years in Moscow and six years  
in Lisbon, Portugal.
He managed the integration of Ernst  
& Young and Arthur Andersen in 
Kazakhstan, when they merged in 2002 
across the CIS. During his term, the  
Ernst & Young office grew from 25 
professionals to a firm of over 400 
professionals, including 14 partners, 
serving some of the leading enterprises  
in Kazakhstan.
He has been the chairman of the 
Kazakhstan Foreign Investors Council  
for three years, as well as holding  
a board position with the American 
Chamber of Commerce in Kazakhstan  
for six years.
Kuat Oraziman (aged 49)
Executive Director
Mr Oraziman has 20 years of business 
experience in Kazakhstan and abroad 
and nearly 10 years of oil and gas 
experience in Kazakhstan. His 
experience has included the operation  
of import and export businesses, the 
establishment and operation of an 
international brewery in Kazakhstan,  
and acting as the Kazakhstan 
representative of Phillips and Stork.  
Since 2001, Mr Oraziman has been  
a Director of ADA LLP.
Mr Oraziman also holds a doctorate  
in science and is a trained geologist. 15
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Hyunsik Jang (aged 55)
Chief Operating Officer
Hyunsik Jang is a Korean national who 
has 26 years experience in the 
upstream oil & gas industry, gained 
principally with LGI where he worked in 
South East Asia, the Middle East and 
Latin America.
In 2006, he was promoted to Vice 
President in charge of the Energy 
Division and in 2007 transferred to 
Kazakhstan as head of LGI’s Central 
Asia region. Mr Jang was responsible 
for LGI’s interest in the ADA and ADA oil 
properties. He was appointed as Chief 
Operating Officer and an Executive 
Director of the Board of Roxi Petroleum 
Plc on 1 February 2010.
Edmund Limerick (aged 49)
Non-Executive Director 
Edmund has been involved in Central 
Asia and financing the oil and gas 
business for the last 18 years. He was  
a manager of the Altima Central Asia 
Fund which has invested in private 
equity in the oil sector in many 
countries in the region, and prior to that 
he spent many years in Deutsche Bank 
as a project financier and senior oil and 
gas investment banker in Moscow,  
London and Dubai.
Previously Edmund was a solicitor  
with Milbank Tweed in Moscow and 
Freshfields and Clifford Chance in 
London. His early career was spent  
in HM Diplomatic Service with postings  
in Paris, Dakar and Amman. He was 
educated in Oxford, London, Moscow 
and Paris and speaks Russian. 
He is a non-executive director of  
Chagala Ltd, Saddleback Mining Ltd, 
GCRC 1 Ltd, a Governor of Ardingly 
College and a member of the 
Association of Conservative Peers.  
He was appointed a Non-Executive 
Director of Roxi Petroleum plc on  
3 February 2010. 16
Roxi Petroleum plc 
Annual Report and Accounts 2011
Directors’ report and business review
The Directors present their annual report on the operations  
of the Company and the Group, together with the audited 
financial statements for the year ended 31 December 2011. 
The Chairman’s statement and the Chief Executive’s 
Statement form part of the business review for this year.
Results and dividends
The consolidated income statement is set out on page 25 
and shows the loss for the year. The Directors do not 
recommend the payment of a dividend (2010: US $ nil).  
The position and performance of the Group is discussed 
below and further details are given in the Business Review.
Principal activity
The principal activity of the Company and the Group is to 
build a diversified portfolio of oil and gas exploration and 
production assets in Central Asia. The Group’s focus is 
currently on Kazakhstan as a result of numerous niche 
onshore opportunities available under the prevailing contract 
regime and the extensive operational experience of the 
management of the Group in the country.
Group overview
On Admission to AIM in May 2007, the Company raised  
US $ 78 million from institutional investors to pursue a 
strategy of building a diversified portfolio of oil and gas 
exploration and production assets located in Central Asia. 
Following the acquisition of 59% of Eragon Petroleum Plc 
which was approved by shareholders on 29 February 2008 
the Group had controlling interests in three additional 
Contract Areas: the BNG Contract Area, the Galaz Contract 
Area and the Munaily Contract Area, which are located in  
the Kyzyl-Orda region and Western Kazakhstan in the 
Pre-Caspian and Turgai Basins. 
During 2011 and 2012, farm-out agreements have been 
negotiated into selling down the Group’s interests in the BNG 
and Galaz assets to provide funding to allow the Group to 
meet its work programme commitments in respect of its 
primary assets. 
Strategy and future developments
The Group’s long-term strategy is to build a diversified 
portfolio of oil and gas exploration and production assets in 
Central Asia which, in the opinion of the Directors, have 
potential for near-term production and increases in the 
stated reserves. The Company is focused on developing the 
existing portfolio of assets against the backdrop of a 
fluctuating oil price which has been rising in recent months. 
The key components of the Group’s strategy are summarised  
as follows:
–  The Group seeks to optimise its core assets by 
achieving early production and building the 
infrastructure to maximise shareholder value in the 
near-term, and to that end it commended first 
production at Galaz in the first quarter 2012;
–  In the medium-term, the Group will maximise production 
and export routes to ensure shareholder value is 
progressively increased over time,
–  In the longer-term, the Group will identify new 
opportunities for underdeveloped oil and gas assets with 
a view to developing them by sourcing new forms of 
finance and partners to leverage the expertise that Roxi 
has acquired through developing assets within Kazakhstan.
Current trading and prospects
Since its first admission, the Company has received only 
minimal income, with first production from one of its assets 
only starting in the first quarter in 2012. 
For the year ended 31 December 2011, the Group reported  
an after tax loss of US $ 9.5 million and had total equity of 
US $ 89.7 million.
The Directors intend to manage the activities of the Company  
in a conservative manner. 
Key strengths
The Directors believe that the Company’s strengths will 
enable it to pursue a strategy to become a significant 
independent oil company in Central Asia. The Directors 
believe the Company’s key strengths include:
•	 E x p e r i e n c e d	t e a m
 The Company benefits from an experienced team 
of proven oil and gas executives who also have  
in-depth experience of operating in Kazakhstan  
and extensive contacts in the region. The Company  
intends to utilise these contacts through their joint 
venture partners to maximise the benefit to the  
Group’s operations and acquisitions.
•	 S i g n i fi c a n t	n e a r - t e r m	p r o d u c t i o n
The Directors believe the Company’s existing reserves  
can be exploited to achieve further near-term production 
that will drive early cash flows and will allow the business  
to achieve profitability and the continued expansion of 
the Company’s business.
•	 S i g n i fi c a n t	p o s s i b i l i t y	o f	a d d i t i o n a l	r e s e r v e s
In addition to existing reserves, the Directors consider 
there is a good chance that the actual recoverable 
reserves can be increased, that the Contract Areas  
have historically been inadequately or poorly explored 
and that the Contract Areas offer outstanding 
development potential.
•	 F u r t h e r	a c q u i s i t i o n	o p p o r t u n i t i e s
The Directors consider that in the long-term the Company 
is well placed to access and successfully negotiate oil and 
gas assets in Kazakhstan at competitive prices and to 
further add to its portfolio of oil assets in the future. 17
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Principal risks and uncertainties
The Company and the Group is subject to various risks 
relating to political, economic, legal, social, industry, business 
and financial conditions. The following risk factors, which are 
not exhaustive, are particularly relevant to the Company and 
the Group’s business activities:
•	 F i n a n c i n g	r i s k s
The Group continually monitors the financing 
arrangements to ensure the continuation of the 
operational activities. The Group has secured adequate 
financing of Galaz and Company LLP for 2012 and has 
recently signed additional financing for BNG LLP from the 
farm-out of a 35% interest to KNOC.
•	 E x p l o r a t i o n	r i s k
There is no assurance that the Group’s exploration 
activities will be successful. Accordingly, the Group seeks 
to reduce this risk by reviewing the level of investment 
made in each project, as well as engaging qualified 
personnel to undertake detailed assessments of the areas 
under exploration. 
•	 E n v i r o n m e n t a l	a n d	o t h e r	r e g u l a t o r y	r e q u i r e m e n t s
Existing and possible future environmental legislation, 
regulations and actions could cause additional expense, 
capital expenditures, restrictions and delays in the 
activities of the Group, the extent of which cannot be 
predicted. Before exploration and production can 
commence the Group must obtain regulatory approval 
and there is no assurance that such approvals will be 
obtained. No assurance can be given that new rules and 
regulations will not be enacted or existing legislations will 
not be applied in a manner which could limit or curtail the 
Group’s activities.
•	 O p e r a t i o n a l	r i s k s
The Group currently operates primarily in Kazakhstan. 
The nature of the Group’s investments requires the 
commitment of significant funding to facilitate 
exploration and evaluation expenditure in Kazakhstan. 
It is the nature of oil and gas operations that each 
project is long-term. It may be many years before the 
exploration and evaluation expenditures incurred are 
proven to be viable and for progress to reach 
commercial production. To control these risks the 
Board arranges for the provision of technical support, 
directly or through appointed agents and also 
commissions technical research and feasibility studies 
both prior to entering into these commitments and 
subsequently in the life of these projects.
In addition, operational risks include equipment failure,  
well blowouts, pollution, fire and the consequences of bad 
weather. Where the Group is project operator, it takes an 
increased responsibility for ensuring that the Company is 
compliant with all relevant legislation.
The Group has hired competent people with appropriate skills  
to manage such risks at the appropriate levels within the 
Group structure.
Financing and treasury
The Group’s cash position at 31 December 2011 
was US $ 1.5 million (2010: US $ 5.0 million).
The bulk of the Group’s cash balances are held  
in US Dollar denominated accounts.
Events after the reporting period
Other than as disclosed in this annual report, including  
Note 32 to the financial statements, there have been no 
material events between 31 December 2011 and the date  
of this report, which are required to be brought to the 
attention of shareholders. 
Dividend policy
The Directors do not intend to declare or pay a dividend  
in the immediate foreseeable future but, subject to the 
availability of sufficient distributable profits, intend to 
commence the payment of dividends when it becomes 
commercially prudent to do so.
Charitable and political donations
During the year the Group made no charitable or  
political contributions.
Corporate social responsibility
The Company will implement various social investment 
programmes throughout the Group. The Company is 
committed to contribute to improving the quality of life  
and education of the local workforce and communities.  
The Company plans to work with its employees and local 
residents to determine the most effective ways to implement 
the social and community programmes.
Supplier payment policy
It is in the Group’s policy to pay suppliers in accordance with the 
terms and conditions agreed with them. The average number 
of days to pay suppliers in the year under review as calculated 
in the prescribed manner is 160 days (2010: 100 days).
Employees
Staff employed by the Group are based primarily in 
Kazakhstan. The recruitment and retention of staff, especially 
at management level, is increasingly important as the Group 
continues to build its portfolio of oil and gas assets.
As well as providing employees with appropriate  
remuneration and other benefits together with a safe and 
enjoyable working environment, the Board recognises the 
importance of communicating with employees to motivate 
them and involve them fully in the business. For the most part, 
this communication takes place at a local level but staff are 
kept informed of major developments through e-mail updates 
and access to the Company’s website.
The Company has taken out full indemnity insurance on 
behalf of the Directors and officers. 18
Roxi Petroleum plc 
Annual Report and Accounts 2011
Directors’ report and business review continued
Health, safety and environment
It is the Group’s policy and practice to comply with health, 
safety and environmental regulations and the requirements of 
the countries in which it operates, to protect its employees, 
assets and environment.
Key performance indicators (“KPIs”)
The Directors are of the opinion that finding prospective 
accumulations of hydrocarbons is the appropriate KPI at this 
stage of the Group’s business.
Going Concern
The financial statements have been prepared on a going 
concern basis based upon projected future cash flows and 
planned work programmes. 
On 30 April 2012, the Group extended the term of the loan 
facility arrangement with Vertom International NV for a further 
two years to 30 April 2014 and at the same time increased the 
facility amount to US $ 7 million, (Note 32.2). In the opinion of 
the Directors, this will cover the working capital needs for the 
forthcoming twelve months. 
Directors and Directors’ interests
The Directors of the Company who served during the year were:
Mr Clive Carver  Non-Executive Chairman
Mr David Wilkes Chief Executive Officer 
Mr Hyunsik Jang Chief Operating Officer
Mr Kuat Oraziman  Executive Director
Mr Edmund Limerick  Non-Executive Director
Biographical details of the current Directors are set out on 
page 14 and 15. 
Details of the Directors’ individual remuneration, service 
contracts and interests in share options are shown in the 
Remuneration Committee Report.
Financial instruments
Details of the use of financial instruments by the Company  
and its subsidiary undertakings are contained in Note 30  
of the financial statements. 
Share options and warrants
The Directors consider that an important part of the Group’s 
remuneration policy should include equity incentives through 
the grant of share options to Directors and employees.
Details of the options and warrants are set out in Notes 28  
and 29 of the financial statements.
Statement of disclosure of information to auditors
All of the current Directors have taken all the steps that they 
ought to have taken to make themselves aware of any 
information needed by the Company’s auditors for the 
purposes of their audit and to establish that the auditors are 
aware of that information. The Directors are not aware of any 
relevant audit information of which the auditors are unaware.
Auditors
The Company’s auditors, BDO LLP, have indicated their 
willingness to continue in office and a resolution concerning 
their reappointment will be proposed at the next Annual 
General Meeting. 
Directors’ responsibilities
The Directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable 
law and regulations. 
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the 
Directors have elected to prepare the Group and Company 
financial statements in accordance with International 
Financial Reporting Standards (IFRSs) as adopted by the 
European Union. Under company law the Directors must not 
approve the financial statements unless they are satisfied 
that they give a true and fair view of the state of affairs of the 
Group and Company and of the profit or loss of the Group 
and Company for that period. The Directors are also required 
to prepare financial statements in accordance with the rules 
of the London Stock Exchange for companies trading 
securities on the Alternative Investment Market. 
In preparing these financial statements, the Directors are 
required to:
•	 select suitable accounting policies and then apply  
them consistently;
•	 make judgements and accounting estimates that  
are reasonable and prudent;
•	 state whether they have been prepared in accordance  
with IFRSs as adopted by the European Union, subject  
to any material departures disclosed and explained in  
the financial statements; and
•	 prepare the financial statements on the going concern  
basis unless it is inappropriate to presume that the  
Company will continue in business. 19
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain  
the Company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the Company 
and enable them to ensure that the financial statements 
comply with the requirements of the Companies Act 2006. 
They are also responsible for safeguarding the assets of the 
Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
Website publication
The Directors are responsible for ensuring the annual report  
and the financial statements are made available on a website. 
Financial statements are published on the Company’s website 
in accordance with legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements, which may vary from legislation in other 
jurisdictions. The maintenance and integrity of the Company’s 
website is the responsibility of the Directors. The Directors’ 
responsibility also extends to the ongoing integrity of the 
financial statements contained therein.
London Registrars plc
Company Secretary
8 May 2012 20
Roxi Petroleum plc 
Annual Report and Accounts 2011
Remuneration Committee Report 
Remuneration Committee
The Remuneration Committee comprises Clive Carver, David Wilkes, Kuat Oraziman and Edmund Limerick and is chaired by  
Clive Carver.
Remuneration policy
The Company’s policy is to provide remuneration packages that will attract, retain and motivate its executive Directors and 
senior management. This consists of a basic salary, ancillary benefits and other performance-related remuneration appropriate 
to their individual responsibilities and having regard to the remuneration levels of comparable posts. The Remuneration 
Committee determines the contract term, basic salary, and other remuneration for the members of the Board and the senior 
management team.
Service contracts
Details of the current Directors’ service contracts are as follows:
Date of service agreement/
appointment letter
Date of last renewal  
of appointment
Executive
David Wilkes 1 October 2009 1 January 2010
Kuat Oraziman 1 April 2007 27 June 2011
Hyunsik Jang 1 February 2010 27 June 2011
Non-Executive
Clive Carver 1 January 2008 1 January 2009
Edmund Limerick 1 February 2010 1 February 2010
Basic salary and benefits
The basic salaries of the Directors who served during the financial period are established by reference to their responsibilities 
and individual performance. The amounts received by the Directors are set out below in US $.
2011 
Salary/fees
2011 
Benefits
2011 
Total
2010 
Total 
Clive Carver 102,363 – 102,363 96,000
Edmund Limerick 48,000 – 48,000 44,000
David Wilkes 579,145 92,252 671,397 660,982
Hyunsik Jang 381,879 57,544 439,423 359,212
Duncan McDougall – – – 249,301
Kuat Oraziman 480,144 7,531 487,675 468,307
The highest paid director had emoluments totalling US $ 671,397. The highest paid director was granted 8,660,000, and 
exercised nil, share options during the year. For further details on directors emoluments see Note 31.3.
Bonus schemes
The Company has a bonus scheme for the executive Directors and senior management team. No bonus are payable in respect 
of the year to 31 December 2011.  21
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Share options
The current interests as at approval of accounts of the current Directors in share options agreements are as follows:
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 2,400,000 4p 14 December 2021
David Wilkes 4,800,000 4p 14 December 2021
Kuat Oraziman 4,200,000 4p 14 December 2021
Hyunsik Jang 4,200,000 4p 14 December 2021
Edmund Limerick 1,200,000 4p 14 December 2021
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 750,000 13p 12 January 2021
David Wilkes 3,860,000 13p 12 January 2021
Kuat Oraziman 3,090,000 13p 12 January 2021
Hyunsik Jang 3,090,000 13p 12 January 2021
Edmund Limerick 750,000 13p 12 January 2021
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 538,264 12p 14 August 2019
David Wilkes 354,918 12p 1 October 2019
David Wilkes 2,000,000 12p 15 February 2020
Kuat Oraziman 269,132 12p 14 August 2019
Hyunsik Jang 750,000 12p 22 June 2020
Edmund Limerick 200,000 12p 15 February 2020
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 1,345,660 38p 22 May 2017
David Wilkes 1,162,555 38p 1 October 2019
Kuat Oraziman 672,830 38p 22 May 2017
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 1,215,385 65p 29 February 2018
Clive Carver 387,692 65p 22 April 2018
David Wilkes 1,462,618 65p 1 October 2019
Kuat Oraziman 607,692 65p 29 February 2018
Kuat Oraziman 193,846 65p 22 April 2018 22
Roxi Petroleum plc 
Annual Report and Accounts 2011
Remuneration Committee Report continued
Table for share options issued at 31 December 2011
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 2,400,000 4p 14 December 2021
David Wilkes 4,800,000 4p 14 December 2021
Kuat Oraziman 4,200,000 4p 14 December 2021
Hyunsik Jang 4,200,000 4p 14 December 2021
Edmund Limerick 1,200,000 4p 14 December 2021
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 750,000 13p 12 January 2021
David Wilkes 3,860,000 13p 12 January 2021
Kuat Oraziman 3,090,000 13p 12 January 2021
Hyunsik Jang 3,090,000 13p 12 January 2021
Edmund Limerick 750,000 13p 12 January 2021
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 538,264 12p 14 August 2019
David Wilkes 354,918 12p 1 October 2019
David Wilkes 2,000,000 12p 15 February 2020
Kuat Oraziman 269,132 12p 14 August 2019
Hyunsik Jang 750,000 12p 22 June 2020
Edmund Limerick 200,000 12p 15 February 2020
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 1,345,660 38p 22 May 2017
David Wilkes 1,162,555 38p 1 October 2019
Kuat Oraziman 672,830 38p 22 May 2017
Directors – Current interest Granted Exercise Price Expiry date
Clive Carver 1,215,385 65p 29 February 2018
Clive Carver 387,692 65p 22 April 2018
David Wilkes 1,462,618 65p 1 October 2019
Kuat Oraziman 607,692 65p 29 February 2018
Kuat Oraziman 193,846 65p 22 April 2018
On behalf of the Directors of Roxi Petroleum plc 
Clive Carver
Chairman of Remuneration Committee
8 May 2012 23
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Report on Corporate Governance
In common with the Board’s commitment to apply best 
practice corporate governance procedures and with 
reference to the UK Corporate Governance Code (“the 
Code”) on corporate governance the Board has prepared 
the following report. As an AIM company there is no 
requirement to comply with the Code but it has adopted  
the following corporate governance procedures which the 
Directors believe demonstrates good corporate governance 
for the size of the Group. 
The Group also intends to comply with the principles of  
the Corporate Governance Guidelines for AIM Companies 
published by the Quoted Companies Alliance in 2010, so  
far as it is practical for a Company of its size
Board of Directors
The Company has 2 Non-Executive Directors and 3 Executive 
Directors as follows:
Mr Clive Carver Non-Executive Chairman
Mr David Wilkes Executive
Mr Kuat Oraziman Executive
Mr Hyunsik Jang Executive
Mr Edmund Limerick Non-Executive
The Board retains full and effective control over the  
Company. The Company holds a Board meeting at least  
once per quarter, at which financial and other reports are 
considered and, where appropriate, voted on. Apart from 
regular meetings, additional meetings are arranged when 
necessary to review strategy, planning, operational, financial 
performance, risk and capital expenditure and human 
resource and environmental management. The Board 
is also responsible for monitoring the activities of the 
executive management. 
Board of meetings
The Board met 9 times and 10 times during 2011 and 2010 
respectively, with the following attendance:
2011 2010
Mr C Carver 9 10
Mr E Limerick 9 7
Mr D Wilkes 9 10
Mr K Oraziman 9 8
Mr H Jang 9 7
The Board has established the following committees:
Audit Committee
The audit committee, which comprises Clive Carver and 
Edmund Limerick with Clive Carver acting as Chairman, 
determines and examines any matters relating to the financial 
affairs of the Company including the terms of engagement of 
the Group’s auditors and, in consultation with the auditors, 
the scope of the audit. The audit committee receives and 
reviews reports from the management and the external 
auditors of the Group relating to the annual and interim 
amounts and the accounting and internal control systems of 
the Group. In addition it considers the financial performance, 
position and prospects of the Company and ensures they are 
properly monitored and reported on. 
Remuneration Committee
The remuneration committee comprising Clive Carver,  
David Wilkes, Edmund Limerick and Mr Oraziman with  
Clive Carver acting as Chairman, reviews the performance  
of the senior management, sets and reviews their 
remuneration and the terms of their service contracts  
and considers the Group’s bonus and option schemes.
Rule 21 
The Directors comply with Rule 21 of the AIM Rules relating to 
Directors’ dealing and take all reasonable steps to ensure 
compliance by the Company’s applicable employees. The 
Company has adopted and operates a share dealing code for 
Directors and employees in accordance with the AIM Rules.
Internal controls 
The Board acknowledges responsibility for maintaining 
appropriate internal control systems and procedures to 
safeguard the shareholders’ investments and the assets, 
employees and the business of the Group.
The Board has established and operates a policy of  
continuous review and development of appropriate financial 
controls together with operating procedures consistent with  
the accounting policies of the Group.
The Board does not consider it appropriate for the current 
size of the Group to establish an internal audit function. 24
Roxi Petroleum plc 
Annual Report and Accounts 2011
We have audited the financial statements of Roxi Petroleum  
Plc for the year ended 31 December 2011 which comprise the 
consolidated income statement, the consolidated statement of 
comprehensive income, the consolidated and parent company 
statement in changes in equity, the consolidated and parent 
company statement of financial position, the consolidated and 
parent company cash flow statement and the related notes. 
The financial reporting framework that has been applied in  
their preparation is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European 
Union and, as regards the parent company financial 
statements, as applied in accordance with the provisions  
of the Companies Act 2006. 
This report is made solely to the company’s members, as a 
body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so 
that we might state to the company’s members those matters 
we are required to state to them in an auditor’s report and for 
no other purpose. To the fullest extent permitted by law, we 
do not accept or assume responsibility to anyone other than 
the company and the company’s members as a body, for our 
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the statement of Directors’ 
responsibilities, the Directors are responsible for the 
preparation of the financial statements and for being satisfied 
that they give a true and fair view. Our responsibility is to audit 
and express an opinion on the financial statements in 
accordance with applicable law and International Standards 
on Auditing (UK and Ireland). Those standards require us to 
comply with the Auditing Practices Board’s (APB’s) Ethical 
Standards for Auditors. 
Scope of the audit of the financial statements
A description of the scope of an audit of financial  
statements is provided on the APB’s website at  
www.frc.org.uk/apb/scope/private.cfm. 
Opinion on financial statements
In our opinion: 
•	 the financial statements give a true and fair view of the  
state of the Group’s and the parent company’s affairs as  
at 31 December 2011 and of the Group’s loss for the year 
then ended;
•	 the Group financial statements have been properly 
prepared in accordance with IFRSs as adopted by the 
European Union;
•	 the parent company financial statements have been 
properly prepared in accordance with IFRSs as adopted 
by the European Union and as applied in accordance with 
the provisions of the Companies Act 2006; and
•	 the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the 
Companies Act 2006
In our opinion the information given in the Directors’ report  
for the financial year for which the financial statements are 
prepared is consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if,  
in our opinion:
•	 adequate accounting records have not been kept by the 
parent company, or returns adequate for our audit have  
not been received from branches not visited by us; or
•	 the parent company financial statements are not in 
agreement with the accounting records and returns; or
•	 certain disclosures of Directors’ remuneration specified  
by law are not made; or
•	 we have not received all the information and explanations  
we require for our audit.
Scott Knight (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor 
London 
United Kingdom 
8 May 2012
BDO LLP is a limited liability partnership registered in  
England and Wales (with registered number OC305127).
Independent auditors’ report to the members of Roxi Petroleum Plc 25
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Consolidated Income Statement
Notes
Year to 
31 December
 2011 
$’000
Year to 
31 December 
2010 
$’000
Revenue 186 123
Cost of sales (186) (123)
– –
Impairment of unproven oil and gas assets 11 (49,580) (10,354)
Profit on disposal of subsidiary excluding release of  
cumulative translation reserve 15,16 17,636 1,641
Gain on acquisition of subsidiary 14 33,642 –
Release of cumulative translation reserve 14,15,16 (4,964) (15,984)
Provision against joint venture receivable 19 (6,103) (7,818)
Reversal of provision/(provision) against other receivables 14 7,763 (7,763)
Share-based payments 28 (1,556) (306)
Other administrative expenses (7,174) (7,564)
(10,336) (48,148)
Operating loss 4 (10,336) (48,148)
Finance cost 7 (1,740) (6,124)
Finance income 8 1,782 5,459
Loss before taxation (10,294) (48,813)
Tax credit/(charge) 9 842 (5,248)
Loss after taxation (9,452) (54,061)
Loss attributable to minority interests (10,951) (2,351)
Income/(loss) attributable to equity shareholders 1,499 (51,710)
(9,452) (54,061)
Basic and diluted earnings/(loss) per ordinary share (US cents) 10 0.3 (12.3)
All of the results of the Group during the year relate to continuing activities.
No interim or final dividend has been paid or proposed during the year.
The notes on pages 31 to 67 form part of these financial statements. 26
Roxi Petroleum plc 
Annual Report and Accounts 2011
Consolidated Statement of Comprehensive Income
Year ended 
31 December 
2011 
US $ ’000
Year ended 
31 December 
2010 
US $ ’000
Loss after taxation (9,452) (54,061)
Other comprehensive income:
Exchange differences on translating foreign operations (935) 102
Other comprehensive income/ (loss) for the year before and after taxation (935) 102
Total comprehensive loss for the year (10,387) (53,959)
Total comprehensive income attributable to:
Owners of parent 947 (51,638)
Minority interest (11,334) (2,321)
The notes on pages 31 to 67 form part of these financial statements. 27
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Consolidated Statement of Changes in Equity
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Cumulative 
translation 
reserve 
$’000
Other 
reserves 
$’000
Capital 
contribution 
reserve 
$’000
Retained 
earnings 
$’000
Total 
$’000
Minority 
interests 
$’000
Total 
equity 
$’000
Total equity as at 1 January 2011 7,832 104,798 64,702 (3,038) 1,779 (2,229) (107,530) 66,314 (7,954) 58,360
Total comprehensive income for the year – – – (552) – – 1,499 947 (11,334) (10,387)
Extinguishment of shareholder loan – – – – – (1,344) 1,344 – – –
Debts converted to equity 2,945 6,478 – – – – 9,423 – 9,423
Purchase of subsidiary – – – 2,056 – – 2,056 27,385 29,441
Arising on employee share options – – – – – – 1,556 1,556 – 1,556
Disposal of subsidiary – – – 2,907 – – – 2,907 (1,649) 1,258
Total equity as at 31 December 2011 10,777 111,276 64,702 1,373 1,779 (3,573) (103,131) 83,203 6,448 89,651
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Cumulative 
translation 
reserve 
$’000
Other 
reserves 
$’000
Capital 
contribution 
reserve 
$’000
Retained 
earnings 
$’000
Total 
$’000
Minority 
interests 
$’000
Total 
equity 
$’000
Total equity as at 1 January 2010 7,772 104,305 64,702 (19,094) 2,378 265 (58,293) 102,035 29,703 131,738
Total comprehensive income for the year – – – 72 – – (51,710) (51,638) (2,321) (53,959)
Arising on share issues 60 493 – – – – – 553 – 553
Arising on loan from shareholder – – – – – (132) 1,476 1,344 – 1,344
Forfeited warrants* – – – – (599) – 599 – – –
Purchase of additional share in subsidiary – – – – – (2,362) – (2,362) (1,018) (3,380)
Arising on exercise of warrants – – – – – – 92 92 – 92
Arising on employee share options – – – – – – 306 306 – 306
Disposal of subsidiary – – – 15,984 – – – 15,984 (34,318) (18,334)
Total equity as at 31 December 2010 7,832 104,798 64,702 (3,038) 1,779 (2,229) (107,530) 66,314 (7,954) 58,360
Reserve Description and purpose
Share capital The nominal value of shares issued 
Share premium Amount subscribed for share capital in excess of nominal value 
Deferred shares The nominal value of deferred shares issued 
Cumulative translation reserve Losses arising on retranslating the net assets of overseas operations into US Dollars 
Other reserves Fair value of warrants issued 
Capital contribution reserve Capital contribution arising on discounted loans, step by step acquisitions  
  and effect of issue costs of debt in subsidiary 
Retained earnings Cumulative losses recognised in the consolidated income statement 
Minority interests The interest of non-controlling interests in the net assets of the subsidiaries
* Forfeited warrants-arises as a result of the Company’s expired warrants during 2010, see Note 29.
The notes on pages 31 to 67 form part of these financial statements. 28
Roxi Petroleum plc 
Annual Report and Accounts 2011
Parent Company Statement of Changes in Equity
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Other 
reserves 
$’000
Capital 
contribution 
reserve 
$’000
Retained 
earnings 
$’000
Total 
$’000
Total equity as at 1 January 2011 7,832 104,798 64,702 1,779 1,344 (87,738) 92,717
Total comprehensive income for the year – – – – – (2,786) (2,786)
Extinguishment of shareholder loan – – – – (1,344) 1,344 –
Debts converted to equity 2,945 6,478 – – – – 9,423
Arising on employee share options – – – – – 1,556 1,556
Total equity as at 31 December 2011 10,777 111,276 64,702 1,779 – (87,624) 100,910
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Other 
reserves 
$’000
Capital 
contribution 
reserve 
$’000
Retained 
earnings 
$’000
Total 
$’000
Total equity as at 1 January 2010 7,772 104,305 64,702 2,378 1,476 (63,574) 117,059
Total comprehensive income for the year – – – – – (26,637) (26,637)
Arising on share issues 60 493 – – – – 553
Arising on loan from shareholder – – – – (132) 1,476 1,344
Forfeited warrants* – – – (599) – 599 –
Arising on exercise of warrants – – – – – 92 92
Arising on employee share options – – – – – 306 306
Total equity as at 31 December 2010 7,832 104,798 64,702 1,779 1,344 (87,738) 92,717
Reserve Description and purpose
Share capital The nominal value of shares issued 
Share premium Amount subscribed for share capital in excess of nominal value 
Deferred shares The nominal value of deferred shares issued 
Other reserves Fair value of warrants issued 
Capital contribution reserve Capital contribution arising on discounted loans 
Retained earnings Cumulative losses recognised in the income statement
* Forfeited warrants- arises as a result of the Company’s expired warrants during 2010, see Note 29.
The notes on pages 31 to 67 form part of these financial statements. 29
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Company number 5966431 Notes
Group 
2011
$’000
Company
2011 
$’000
 Group
2010
$’000
 Company
2010
$’000
Assets
Non-current assets
Unproven oil and gas assets 11 111,406 – 76,298 –
Property, plant and equipment 12 533 – 674 5
Investments in subsidiaries 13 – 93,522 – 96,122
Other receivables 19 19,105 19,703 49,101 10,789
Restricted use cash 345 1 221 1
Total non-current assets 131,389 113,226 126,294 106,917
Current assets
Inventories 18 1,689 – 762 –
Other receivables 19 711 68 1,748 236
Cash and cash equivalents 20 1,546 1,067 4,959 2,194
3,946 1,135 7,469 2,430
Assets in disposal Group classified as held for sale 16 – – 8,357 –
Total current assets 3,946 1,135 15,826 2,430
Total assets 135,335 114,361 142,120 109,347
Equity and liabilities
Capital and reserves attributable to equity holders of the parent
Share capital 21 10,777 10,777 7,832 7,832
Share premium 111,276 111,276 104,798 104,798
Deferred shares 21 64,702 64,702 64,702 64,702
Other reserves 1,779 1,779 1,779 1,779
Capital contribution reserve (3,573) – (2,229) 1,344
Retained earnings (103,131) (87,624) (107,530) (87,738)
Cumulative translation reserve 1,373 – (3,038) –
83,203 100,910 66,314 92,717
Minority interests 6,448 – (7,954) –
Total equity 89,651 100,910 58,360 92,717
Current liabilities
Trade and other payables 22 7,037 4,899 6,911 11,714
Purchase consideration received in advance 23 – – 14,213 –
Short-term borrowings 24 3,783 500 14,009 4,460
Warrant liability 29 84 84 332 332
Current income tax – – 580 –
Current provisions 25 3,394 – 2,552 105
14,298 5,483 38,597 16,611
Liabilities directly associated with assets in disposal  
Group classified as held for sale 16 – – 6,906 –
Total current liabilities 14,298 5,483 45,503 16,611
Non-current liabilities
Borrowings 26 12,117 2,728 27,818 –
Deferred tax liabilities 27 8,953 – 8,725 –
Non-current provisions 25 1,332 – 695 –
Other payables 8,984 5,240 1,019 19
Total non-current liabilities 31,386 7,968 38,257 19
Total liabilities 45,684 13,451 83,760 16,630
Total equity and liabilities 135,335 114,361 142,120 109,347
These financial statements were approved and authorised for issue by the Board of Directors on 8 May 2012 and were signed on 
its behalf by:
Clive Carver David Wilkes
Chairman of the Board Chief Executive Officer
The notes on pages 31 to 67 form part of these financial statements.
Consolidated and Parent Company Statement of Financial Position 30
Roxi Petroleum plc 
Annual Report and Accounts 2011
Consolidated and Parent Company Cashflow Statements
Year to 31 December 2011 Year to 31 December 2010
 Notes
Group
$’000
Company
$’000
Group
$’000
Company
$’000
Cash flows from operating activities
Cash received from customers 136 – 123 –
Payments made to suppliers for goods and 
services (4,351) (1,725) (12,838) (3,808)
(4,215) (1,725) (12,715) (3,808)
Cash flows from investing activities
Purchase of plant, property and equipment 12 (305) – (383) –
Additions to unproven oil and gas assets 11 (7,416) – (11,926) –
Disposal of plant, property and equipment 12 28 3 44 32
Transfers to/from restricted use cash (124) – 193 (1)
Acquisition of subsidiaries, net of cash acquired 14,15 136 – (3,380) –
Disposal of subsidiary 15,16,23 (1,743) – 19,682 –
Purchase consideration received in advance/
(repaid) 23 (490) – 13,723 –
Repayment of financial aid and loans by 
subsidiaries – – – 13,629
Issue of financial aid and loans to subsidiaries – (6,729) – (9,677)
Acquisition of joint venture 17 750 – 165 –
Net cash flow from investing activities (9,164) (6,726) 18,118 3,983
Cash flows from financing activities
Net proceeds from issue of ordinary share capital, 
net of expenses relating to issue of shares – – 553 553
Repayment of borrowings (2,500) – (16,433) (8,433)
New loans received 9,824 7,324 27,878 3,500
Loans from subsidiaries – – – 5,416
Loans to joint venture from partners 2,641 – 639 –
Issue of loans to joint venture – – (17,030) –
Net cash from financing activities 9,965 7,324 (4,393) 1,036
Net increase in cash and cash equivalents (3,414) (1,127) 1,010 1,211
Effects of exchange rates – – – –
Cash and cash equivalents at beginning of period 4,960 2,194 3,950 983
Cash and cash equivalents at end of period 20 1,546 1,067 4,960 2,194
There were no significant non-cash transactions during the year except as disclosed in Note 14 (loans transferred), Note 21 
(borrowings converted to equity) and Note 25 (change in estimates and increase in provision).
The notes on pages 31 to 67 form part of these financial statements. 31
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Notes to the Financial Statements
General
Roxi Petroleum plc (“the Company”) is a public Company incorporated and domiciled in England and Wales. The address of its 
registered office is 4th Floor Haines House, 21 John Street, London, WC1N 2BP. These consolidated financial statements were 
authorised for issue by the Board of Directors on 8 May 2012.
The principle activities of the Group are exploration and production of crude oil.
1 Principal accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. 
1.1 Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted 
by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The financial statements have been prepared on a going concern basis based upon projected future cash flows and planned  
work programmes. 
On 30 April 2012, the Group extended the term of the loan facility arrangement with Vertom International NV for a further two 
years to 30 April 2014 and at the same time increased the facility amount to US $ 7 million, (Note 32.2). In the opinion of the 
Directors, this will cover the working capital needs until pilot production from its various assets commences. From this point 
operations will be cash generative.
The Company has taken advantage of section 408 of the Companies Act 2006 and has not included its own income statement in 
these financial statements. The Group loss for the year included a loss on ordinary activities after tax of US $ 2,786,000 in 
respect of the Company which is dealt with in the financial statements of the parent Company.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and 
assumptions that affect the application of policies and reported amounts in the financial statements. The areas involving a 
higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements 
are disclosed in Note 2.
1.2 Accounting standards issued but not adopted
The IFRS financial information has been drawn up on the basis of accounting policies consistent with those applied in the 
financial statements for the year to 31 December 2010. The following new standards and amendments to standards are 
mandatory for the first time for the Group for the financial year beginning 1 January 2011. Except as noted, the implementation 
of these standards did not have a material effect on the Group: 
Standard Impact on initial application Effective date
IFRIC 19 Extinguishing financial 
liability with equity 
instruments 
This interpretation addresses transactions in which an entity issues 
equity instruments to a creditor in return for the extinguishment of all 
or part of a financial liability. 
The Group applied this interpretation from 1 January 2011.
1 July 2010
IAS 24 
(Revised) 
Related party 
disclosures 
The revised standard responds to concerns that the previous 
disclosure requirements and the definition of a related party were too 
complex and difficult to apply in practice, especially in environments 
where government control is pervasive. 
The Group applied the revised standard from 1 January 2011.
1 January 2011
Improvements  
to IFRSs (2010)
The improvements in this amendment clarify the requirements of 
IFRSs and eliminate inconsistencies within and between standards. 
The Group applied the amendments from 1 January 2011.
1 January 2011 32
Roxi Petroleum plc 
Annual Report and Accounts 2011
1.2 Accounting standards issued but not adopted continued
The following new standards and amendments to standards are effective in 2011 but not relevant for the Group:
Standard Impact on initial application Effective date
IAS 32 
(Amendment) 
Classification of rights 
issues
The amendment addresses the accounting for rights issues that are 
denominated in a currency other than the functional currency of the 
issuers. The amendment requires for rights issues to be accounted for  
as equity provided the rights are offered pro-rata to all existing owners  
of the entity. 
The amendment is not relevant to the group as it had no rights issues.
1 February 2010
IFRS 1 
(Amendment)
First-time adoption  
of IFRS
The amendment permits first-time adopters to use the same 
transitional provisions as are available to existing preparers of IFRS. 
This amendment is not relevant to the Group as it is an existing  
IFRS preparer.
1 July 2010 
IFRIC 14 
/ IAS 19 
(Amendment) 
Limit on a defined 
benefit asset, minimum 
funding requirements 
and their interaction 
The amendment applies in the limited circumstances when an entity 
is subject to minimum funding requirements and makes an early 
payment of contributions to cover those requirements. 
The amendment is not relevant to the Group as it is not subject to 
minimum funding requirement.
1 January 2011
The following standards, amendments and interpretations that are not yet effective and have not been early adopted: 
Standard Impact on initial application Effective date
IFRS 7 
(Amendments)
Disclosures – transfers 
of financial assets 
The amendment requires the disclosure of information in respect 
of all transferred financial assets that are not derecognised and for 
any continuing involvement in a transferred asset, existing at the 
reporting date. 
The Group will apply the amendments from 1 January 2012.
1 July 2011
IFRS 1 
(Amendments) 
Severe Hyperinflation 
and removal of  
fixed dates for first-
time adopters 
Management do not expect this amendment, which is subject to  
the endorsement by the EU, to be relevant to the Group. 
1 July 2011*
IAS 12 
(Amendment)
Deferred tax: recovery 
of underlying assets 
The amendment introduces the presumption, when measuring the 
deferred tax relating to an asset, that the entity will normally recover 
its carrying amount through sale. 
Management do not expect this amendment, which is subject to the 
endorsement by the EU, to be relevant to the Group.
1 January 2012* 
IAS 1 
(Amendment) 
Presentation of  
items of other 
comprehensive income 
The amendment requires companies to Group together items within 
other comprehensive income (OCI) that may be reclassified to the 
profit or loss section of the income statement. 
The Group will apply the amendment from 1 January 2013, subject to  
the endorsement by the EU.
1 July 2012*
IFRS 10 Consolidated financial 
statements 
The new standard replaces the consolidation requirements in SIC-12 
“Consolidation – special purpose entities” and IAS 27 “Consolidated  
and separate financial statements”. 
The Group will apply the standard from 1 January 2013,  
subject to the endorsement by the EU.
1 January 2013* 
Notes to the Financial Statements continued 33
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Standard Impact on initial application Effective date
IFRS 11 Joint arrangements The new standard requires that a party to a joint arrangement 
recognises its rights and obligations arising from the arrangements 
rather than focusing on the legal form. 
The Group will apply the standard from 1 January 2013, subject to the 
endorsement by the EU.
1 January 2013* 
IFRS 12 Disclosure of interest 
in other entities 
The standard includes the disclosure requirements for all forms of 
interest in other entities, including subsidiaries, joint arrangements, 
associates and unconsolidated structured entities. 
The Group will apply the standard from 1 January 2013, subject to the 
endorsement by the EU.
1 January 2013* 
IFRS 13 Fair value 
measurement 
The standard defines fair value, sets out a framework for measuring 
fair value and requires disclosures about fair value measurements. 
The Group will apply the standard from 1 January 2013, subject to the 
endorsement by the EU.
1 January 2013* 
IAS 27 
(Amendment 
2011)
Separate financial 
statements 
The amendment contains accounting and disclosure requirements 
for investment in subsidiaries, joint ventures and associates when an 
entity prepares separate financial statements. 
The Group will apply the amendment from 1 January 2013, subject to 
the endorsement by the EU.
1 January 2013* 
IAS 28 
(Amendment 
2011)
Investments in 
associates and joint 
ventures 
The amendment includes the required accounting for joint ventures as 
well as the definition and required accounting for associates. 
The Group will apply the amendment from 1 January 2013, subject to 
the endorsement by the EU.
1 January 2013* 
IAS 19 
(Amendment 
2011) 
Employee benefits The main changes introduced by the amendment revolve around the 
accounting for defined benefit pension schemes. 
Management do not expect this amendment, which is subject to 
the endorsement by the EU, to be relevant to the Group as it has no 
defined benefit pension scheme in place.
1 January 2013* 
IFRIC 20 Stripping costs in the 
production phase of a 
surface mine 
This interpretation applies to waste removal (stripping) costs that are 
incurred in surface mining activity, during the production phase of  
the mine.
The Group will apply the interpretation from 1 January 2013, subject 
to the endorsement by the EU.
1 January 2013* 
IFRS 7 
(Amendment 
2011)
Disclosures – 
offsetting financial 
assets and financial 
liabilities 
The amendment introduces disclosures to enable users of financial 
statements to evaluate the effect or potential effect of netting 
arrangements on entity’s financial position. 
The Group will apply the amendment from 1 January 2013, subject to  
the endorsement by the EU.
1 January 2013* 34
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
Standard Impact on initial application Effective date
IAS 32 
(Amendment 
2011)
Offsetting financial 
assets and financial 
liabilities
The amendment seeks to clarify rather than change the off-setting 
requirements previously set out in IAS 32. 
The Group will apply the amendment from 1 January 2014, subject to  
the endorsement by the EU.
1 January 2014*
IFRS 9 Financial instruments The standard will eventually replace IAS 39 in its entirety. However, the 
process has been divided into three main components: classification 
and measurement, impairment and hedge accounting. 
The Group will apply the standard from 1 January 2013 subject to the 
endorsement by the EU.
1 January 2015*
* Not yet endorsed by the EU. 
The Group is evaluating the impact of the above pronouncements but they are not expected to have a material impact on the 
Group’s earnings or shareholders’ funds.
1.3 Basis of consolidation
Subsidiary undertakings are entities that are directly or indirectly controlled by the Group. Control exists where the Group has 
the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. The consolidated 
financial statements present the results of the Company and its subsidiaries (“the Group”) as if they formed a single entity. 
Intercompany transactions and balances between Group companies are therefore eliminated in full.
The purchase method of accounting is used to account for the acquisition of subsidiary undertakings by the Group. The cost of 
an acquisition is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at 
the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination 
are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of 
the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill.
Where the Group holds interests in a number of jointly controlled entities, it accounts for its interests using proportionate 
consolidation. The share of each of the jointly controlled entity’s assets, liabilities, income and expenses are combined on a 
line-by-line basis with those of the Group. The results of joint ventures are included from the effective dates of acquisition and 
up to the effective dates of disposal.
Profits and losses arising on transactions between the Group and jointly controlled entities are recognised only to the extent of 
unrelated investors’ interests in the entity. The investor’s share in the jointly controlled entity’s profits and losses resulting from 
these transactions is eliminated against the asset or liability of the jointly controlled entity arising on the transaction.
The Group includes the assets it controls, its share of any income and the liabilities and expenses of jointly controlled operations 
and jointly controlled assets in accordance with the terms of the underlying contractual arrangement.
1.4 Operating Loss
Operating loss is stated after crediting all operating income and charging all operating expenses, but before crediting or 
charging the financial income or expenses. 
1.5 Foreign currency translation
1.5.1 Functional and presentational currencies
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary 
economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are 
presented in US Dollars (“USD”), which is the Group’s presentational currency. RS Munai LLP, Beibars Munai LLP, Munaily 
Kazakhstan LLP, BNG Ltd LLP, Roxi Petroleum Services LLP and Roxi Petroleum Kazakhstan LLP, subsidiary undertakings of 
the Group and Galaz and Company LLP being jointly controlled entities, undertake their activities in Kazakhstan and the Kazakh 
Tenge is the functional currency of these entities. The functional currency for the Company, RS Munai BV, Beibars BV, 
Ravninnoe BV, Galaz Energy BV and BNG Energy BV is USD as the significant transactions and assets and liabilities of these 
companies are in USD.
1.2 Accounting standards issued but not adopted continued 35
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
1.5.2 Transactions and balances in foreign currencies
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional 
currency (“foreign currencies”) are recorded at the rates of exchange prevailing at the dates of the transactions. At each balance 
sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the balance sheet date. 
Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the 
date when the fair value was determined. Non-monetary items, including the parent’s share capital, that are measured in terms 
of historical cost in a foreign currency are not retranslated. Exchange differences are recognised in profit or loss in the period in 
which they arise. 
1.5.3 Consolidation
For the purpose of consolidation all assets and liabilities of Group entities with a foreign functional currency are translated at the 
rate prevailing at the balance sheet date. The income statement is translated at the exchange rates approximating to those ruling 
when the transaction took place. Exchange difference arising on retranslating the opening net assets from the opening rate and 
results of operations from the average rate are recognised directly in equity (the “cumulative translation reserve”).
1.6 Current tax
Current tax is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because 
it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never 
taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively 
enacted by the balance sheet date.
1.7 Deferred tax
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting 
purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial 
recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and 
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. 
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of 
assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
Deferred tax liabilities are generally recognised for all taxable temporary differences. A deferred tax asset is recorded only to the 
extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised.
1.8 Unproven oil and gas assets
The Group applies the full cost method of accounting for exploration and unproven asset costs, having regard to the 
requirements of IFRS 6 ‘Exploration for and Evaluation of Mineral Resources’. Under the full cost method of accounting, costs of 
exploring for and evaluating oil and gas properties are accumulated and capitalised by reference to appropriate cost pools. 
Such cost pools are based on license areas. The Group currently has five cost pools. 
Exploration and evaluation costs are initially capitalised within ‘Intangible assets’. Such exploration and evaluation costs may 
include costs of licence acquisition, technical services and studies, seismic acquisition, exploration drilling and testing, but do 
not include costs incurred prior to having obtained the legal rights to explore an area, which are expensed directly to the income 
statement as they are incurred. 
Tangible assets acquired for use in exploration and evaluation activities are classified as property, plant and equipment. 
However, to the extent that such a tangible asset is consumed in developing an intangible exploration and evaluation asset, the 
amount reflecting that consumption is recorded as part of the cost of the intangible asset.
The amounts included within unproven oil and gas assets include the fair value that was paid for the acquisition of partnerships 
holding subsoil use in Kazakhstan. These licences have been capitalised to the Group’s full cost pool in respect of each license area. 
Exploration and unproven intangible assets related to each exploration licence/prospect are not amortised but are carried 
forward until the existence (or otherwise) of commercial reserves has been determined. 
Exploration and unproven intangible assets are reviewed for impairments if events or changes in circumstances indicate that the 
carrying amount may not be recoverable and as at the balance sheet date. Intangible exploration and evaluation assets that 
relate to exploration and evaluation activities that are not yet determined to have resulted in the discovery of the commercial 
reserve remain capitalised as intangible exploration and evaluation assets at cost less accumulated amortisation, subject to 
meeting a pool-wide impairment test as set out below.  36
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
1.8 Unproven oil and gas assets continued
Such indicators include the point at which a determination is made as to whether or not commercial reserves exist. Where the 
exploration and evaluation assets concerned fall within the scope of an established full cost pool, the exploration and evaluation 
assets are tested for impairment together with all development and production assets associated with that cost pool, as a single 
cash generating unit. The aggregate carrying value is compared against the expected recoverable amount of the pool, generally 
by reference to the present value of the future net cash flows expected to be derived from production of the commercial 
reserves. Where the exploration and evaluation assets to be tested fall outside the scope of any established cost pool, there will 
generally be no commercial reserves and the exploration and evaluation assets concerned will generally be written off in full. 
Any impairment loss is recognised in the income statement as an impairment and separately disclosed.
If commercial reserves have been discovered, the related exploration and evaluation assets are assessed for impairment on a 
cost pool basis as set out below and any impairment loss is recognised in the income statement. The carrying value, after any 
impairment loss, of the relevant exploration and evaluation assets is then reclassified as development and production assets 
within property, plant and equipment. Development and production assets are amortised on a unit of production basis over the 
life of the commercial reserves of the pool to which they relate. 
1.9 Abandonment
Provision is made for the present value of the future cost of the decommissioning of oil wells and related facilities. This 
provision is recognised when the asset is installed. The estimated costs, based on engineering cost levels prevailing at the 
balance sheet date, are computed on the basis of the latest assumptions as to the scope and method of decommissioning. 
The corresponding amount is capitalised as a part of tangible fixed assets and is amortised on a unit-of-production basis as 
part of the depreciation, depletion and amortisation charge. Any adjustment arising from the reassessment of estimated cost 
of decommissioning is capitalised, while the charge arising from the unwinding of the discount applied to the 
decommissioning provision is treated as a component of the interest charge.
1.10 Restricted use cash
Restricted use cash is the amount set aside by the Group for the purpose of creating an abandonment fund to cover the future  
cost of the decommissioning of oil and gas wells and related facilities and in accordance with local legal rulings. 
Under the SSUC contract the Group must place 1% of the value of exploration costs in an escrow deposit account. At the end 
of the contract this cash will be used to return the field to the condition that it was in before exploration started.
1.11 Property, plant and equipment
All property, plant and equipment assets are stated at cost or fair value on acquisition less depreciation. Depreciation is 
provided on a straight-line basis, at rates calculated to write off the cost less the estimated residual value of each asset over its 
expected useful economic life. The residual value is the estimated amount that would currently be obtained from disposal of the 
asset if the asset were already of the age and in the condition expected at the end of its useful life. Expected useful economic 
life and residual values are reviewed annually.
The annual rates of depreciation for class of property, plant and equipment are as follows:
– motor vehicles  over 7 years 
– buildings over 10 years  
– other   over 2-4 years
The Group assesses at each balance sheet date whether there is any indication that any of its property, plant and equipment 
has been impaired. If such an indication exists, the asset’s recoverable amount is estimated and compared to its carrying value.
1.12 Investments (Company)
Non-current asset investments in subsidiary and associate undertakings are shown at cost less allowance for impairment. The 
cost of acquisition includes directly attributable professional fees and other expenses incurred in connection with the acquisition. 
1.13 Financial instruments
The Group classifies financial instruments, or their component parts on initial recognition, as a financial asset, a financial liability 
or an equity instrument in accordance with the substance of the contractual agreement.
The Group’s financial assets consist of cash, available for sale financial assets and other receivables. Cash and cash equivalents 
are defined as short-term cash deposits which comprise cash on deposit with an original maturity of less than 3 months. Other 
receivables are initially measured at fair value and subsequently at amortised cost.
The Group’s financial liabilities are non-interest bearing trade and other payables, other interest bearing borrowings and 
warrants. Non-interest bearing trade and other payables and other interest bearing borrowings are stated initially at fair  
value and subsequently at amortised cost. Warrants are recognised on a fair value basis through the income statement. 37
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
There are long-term loans between Group entities and from related parties which bear interest at a rate lower than that which 
the Directors consider the Group would bear if the facility had been granted by a third party. Such borrowings are recognised 
initially at fair value, net of transaction costs incurred, and are subsequently stated at amortised cost. Any difference between 
the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the 
borrowings using the effective interest method. Fair value is calculated by discounting the non-current borrowings and 
receivables using a market rate of interest.
Share capital issued to extinguish financial liabilities are fair valued with any difference to the carrying value of the financial 
liability taken to the income statement.
Financial instruments are recognised on the balance sheet at fair value when the Group becomes a party to the contractual 
provisions of the instrument.
1.14 Inventories 
Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. Cost comprises all 
costs of purchase and other costs incurred in bringing the inventories to their present location and condition. 
1.15 Other provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past 
event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, 
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market 
assessments of the time value of money and, where appropriate, the risks specific to the liability.
1.16 Share capital
Ordinary and deferred shares are classified as equity. Incremental costs directly attributable to the issue of new shares or 
options are shown in equity as a deduction from the proceeds.
1.17 Share-based payments
The Group has used shares and share options as consideration for services received from employees. 
Equity-settled share-based payments to employees and others providing similar services are measured at fair value at the date 
of grant. The fair value determined at the grant date of such an equity-settled share-based instrument is expensed on a 
straight-line basis over the vesting period, based on the Group’s estimate of the shares that will eventually vest.
Equity-settled share-based payment transactions with other parties are measured at the fair value of the goods or services 
received, except where the fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity 
instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. The fair value 
determined at the grant date of such an equity-settled share-based instrument is expensed since the shares vest immediately. 
Where the services are related to the issue of shares, the fair values of these services are offset against share premium.
Fair value is measured using the Black-Scholes model. The expected life used in the model has been adjusted based on 
management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
1.18 Warrants
The warrants are separated from the host contract as their risks and characteristics are not closely related to those of the host 
contracts. Due to the exercise price of the warrants being in a different currency to a functional currency of the Company, at 
each reporting date the warrants are valued at fair value with changes of fair value recognised in profit and loss as they arise. 
The warrants and host contracts are presented under separate heading on the balance sheet, the fair values of the warrants are 
calculated using the Black-Scholes model. 
1.19 Revenue
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for oil and 
gas products provided in the normal course of business, net of discounts, VAT and other sales related taxes to third party 
customers. Revenues are recognised when the risks and rewards of ownership together with effective control are transferred to 
the customer and the amount of the revenue and associated costs incurred in respect of the relevant transaction can be reliably 
measured. Revenue is not recognised unless it is probable that the economic benefits associated with the sales transaction will 
flow to the Group. Revenues from test production are credited to the unproven oil and gas assets.
1.20 Cost of sales
During test production cost of sales cannot be reliably estimated and therefore a cost of sales equal to revenue is recognised.  38
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
1.21 Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision 
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the 
operating segments and making strategic decisions, has been identified as the Board of Directors. On this basis the Group has 
one segment, oil exploration in Kazakhstan.
1.22 Interest receivable
Interest income is recognised using the effective interest rate method.
1.23 Accounts not presented in sterling
For reference the year end exchange rate from sterling to US $ was 1.55 and the average rate during the year was 1.60.
2 Critical accounting estimates and judgements
In the process of applying the Group’s accounting policies, which are described in Note 1, management has made the following 
judgements and key assumptions that have the most significant effect on the amounts recognised in the financial statements.
2.1 Recoverability of exploration and evaluation costs
Under the full cost method of accounting for exploration and evaluation costs, such costs are capitalised as intangible assets by 
reference to appropriate cost pools, and are assessed for impairment on a concession basis when circumstances suggest that 
the carrying amount may exceed its recoverable value and, therefore, there is a potential risk of an impairment adjustment. This 
assessment involved judgment as to: (i) the likely future commerciality of the asset and when such commerciality should be 
determined; (ii) future revenues and costs pertaining to any concession based on proved plus probable, prospective and 
contingent resources; and (iii) the discount rate to be applied to such revenues and costs for the purpose of deriving a 
recoverable value. 
2.2 Income taxes
The Group has significant carried forward tax losses in several jurisdictions. Significant judgement is required in determining 
deferred tax assets based on an assessment of the probability that taxable profits will be available against which carried  
forward losses can be utilised.
Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will 
impact the income statement in the period in which such a determination is made.
2.3 Decommissioning
Provision has been in the accounts for future decommissioning costs to plug and abandon wells. The costs of provisions  
have been added to the value of the unproven oil and gas asset and will be depreciated on the unit of production basis. The 
decommissioning liability is stated in the accounts at discounted present value and accreted up to the final liability by way of an 
annual finance charge.
The Group has potential decommissioning obligations in respect of its interests in Kazakhstan. The extent to which a provision is 
required in respect of these potential obligations depends, inter alia, on the legal requirements at the time of decommissioning,  
the cost and timing of any necessary decommissioning works, and the discount rate to be applied to such costs.
2.4 Share-based compensation
In order to calculate the charge for share-based compensation as required by IFRS2, the Group makes estimates principally 
relating to the assumptions used in its option-pricing model as set out in Note 28.
3 Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision 
maker. The chief operating decision maker, who is responsible for allocating resources and assessing the performance of the 
operating segments and making strategic decisions, has been identified as the Board of Directors.
The Group operates in one operating segment (exploration for oil in Kazakhstan); therefore no additional segmental 
information is presented.  39
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
4 Operating loss
Group operating loss for the period has been arrived after charging:
2011
 $’000
2010 
$’000
Depreciation of property, plant and equipment (Note 12) 297 267
Auditors’ remuneration (Note 5) 321 299
Staff costs (Note 6) 4,145 3,717
Share-based payment remuneration (all equity settled, Note 6) 1,556 306
Impairment of unproven oil and gas assets (Note 11) 49,580 10,354
Provision against other receivables/(reversal of provision) (Note 14) (7,763) 7,763
Provision against joint venture receivable (Notes 16,19) 6,103 7,818
5 Group Auditor’s remuneration
Fees payable by the Group to the Company’s auditor and its associates in respect of the year:
 
2011 
$’000
2010 
$’000
Fees for the audit of the annual financial statements 197 227
Auditing of accounts of associates of the Company 56 66
Other services 68 6
321 299
6 Employees and Directors
Staff costs during the period
Group 
2011
 $’000
Group 
2010 
$’000
Wages and salaries 3,546 3,229
Social security costs 390 313
Pension costs 209 175
Share-based payments 1,556 306
 5,701 4,023
Average monthly number of people employed (including executive Directors)
Group 
2011
Group 
2010
Technical 10 19
Field operations 20 13
Finance 17 17
Administrative and support 30 44
Other – 2
 77 95
Key management Compensation
Group 
2011 
$’000
Group 
2010
 $’000
Salaries and short-term employee benefits 1,749 1,878
 1,749 1,878
Directors’ emoluments
The Directors are the key management personnel of the Company and Group. Details of Directors’ emoluments and interests  
in shares are shown in the Remuneration Report. 40
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
7 Finance cost
Group 
2011
$’000
Group 
2010 
$’000
Loan interest payable 1,196 2,978
Unwinding of fair value adjustments on loans 454 1,951
Write off of financial asset – 1,106
Unwinding of discount on provisions (Note 25) 90 89
1,740 6,124
8 Finance income
Group 
2011 
$’000
 Group 
2010 
$’000
Interest income on financing provided to jointly controlled entities 1,143 3,526
Revaluation of warrants (see Note 29) 248 1,206
Other 391 727
1,782 5,459
9 Taxation
 
Analysis of charge for the period
Group 
2011 
$’000
 Group 
2010 
$’000
Current tax charge (2,600) (5,055)
Deferred tax credit/(charge) 3,442 (193)
Tax credit/(charge) 842 (5,248)
The tax charge/(credit) for the period can be reconciled to the loss for the year as follows:
 
Group 
2011
 $’000
 Group 
2010 
$’000
Loss on ordinary activities before tax 10,294 48,813
Tax on the above at the standard rate of corporate income tax in the UK 26% (2010: 28%) 2,676 13,668
Effects of:
Non deductible expenses (1,349) (8,738)
Increase of deferred tax liability due to change in future tax rates (see Note 27) – (1,687)
Effect of different tax rates overseas (822) (1,922)
Withholding tax on capital gain (see Note 14, 15) (1,877) (4,502)
Recognition of previously unrecognized benefit from losses carried forward 3,442 –
Tax losses carried forward (1,228) (2,067)
Taxation 842 (5,248) 41
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
10 Earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the earnings/(loss) attributable to ordinary shareholders by the 
weighted average number of ordinary shares outstanding during the period including shares to be issued.
In order to calculate diluted earnings/(loss) per share, the weighted average number of ordinary shares in issue is adjusted  
to assume conversion of all dilutive potential ordinary shares according to IAS33. Dilutive potential ordinary shares include 
share options granted to employees and Directors where the exercise price (adjusted according to IAS33) is less than the 
average market price of the Company’s ordinary shares during the period. During the year the potential ordinary shares are 
anti-dilutive and therefore diluted earnings/(loss) per share has not been calculated. At the balance sheet date there were 
72,821,429 (2010: 70,655,264) potentially dilutive ordinary shares consisting of share options and warrants (Notes 28 and 29). 
The calculation of earnings per share is based on:
2011 2010
The basic weighted average number of Ordinary shares in issue during the period 468,011,360 419,847,345
The income/(loss) for the period attributable to equity shareholders ($’000) 1,449 (51,710)
11 Unproven oil and gas assets
Cost
Group 
$’000
Cost at 1 January 2010 211,849
Additions 8,937
Sales from test production (123)
Disposal of subsidiary (Note 14) (145,970)
Foreign exchange difference 837
Reclassification to assets held for sale (Note 16) (30,533)
Other reclassifications 13,130
Recognition of joint venture (Note 17) 34,082
Cost at 31 December 2010 92,209
Additions 8,896
Sales from test production (186)
Disposal of subsidiary (Note 15) (40,765)
Foreign exchange difference (2,376)
Acquisition of subsidiary (Note 14) 117,459
Recognition of joint venture (Note 17) 13,950
Cost at 31 December 2011 189,187 42
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
11 Unproven oil and gas assets continued
Accumulated Impairment
Group 
$’000
Accumulated impairment at 1 January 2010 24,241
Impairment in the year 10,354
Disposal of subsidiary (Note 14) (8,905)
Foreign exchange difference 29
Reclassification to assets held for sale (Note 16) (22,938)
Other reclassifications 13,130
Cost at 31 December 2010 15,911
Impairment in the year 61,975
Foreign exchange difference (105)
Cost at 31 December 2011 77,781
Net book value at 1 January 2010 187,608
Net book value at 31 December 2010 76,298
Net book value at 31 December 2011 111,406
Unproven oil and gas assets represent the acquisition cost and subsequent exploration activities in respect of four licenses held 
by Kazakh Group entities. The carrying values of those assets at 31 December 2011 were as follows: Beibars Munai LLP US $ nil 
(2010: US $ nil), BNG Ltd LLP 100% consolidated US $ 93.4 million (2010 23.41% share: US $ 35.2 million), Galaz and Company 
LLP 34.22% share US $ 15.9 million (2010 100% consolidated: US $ 41.1 million) and Munaily Kazakhstan LLP US $ 2.2 million 
(2010: US $ nil).
The Directors have carried out an impairment review of these assets on a field by field basis. In carrying out this review the 
Directors have taken into account the potential net present values of expected future cash flows and values implied by farm-in 
agreements/sale and purchase agreements (“SPA”s) entered into during the current year and following the year end. Due to the 
early stage of development of these assets, the Directors consider the values implied by the SPAs to be the best indicator of 
value currently available. Accordingly where the value implied by these SPAs is below the net book value, a provision has been 
made to reduce the carrying value of that asset to the value implied by the relevant SPA.
As a result of military training activities the Group currently cannot access the Beibars license area which resulted in a force-
majeure situation. Due to this ongoing force-majeure situation and the uncertainties surrounding the Beibars asset the Directors 
have made a full provision against this asset. 
As a result of the impairment review, during 2011 the Directors have made provisions of US $ 62 million in respect of the  
BNG asset, with an offsetting release of deferred tax of US $ 12.4 million resulting to the net effect on impairment expense  
of US $ 49.6 million. During 2010, the Directors have made provisions of US $ 10.4 million in respect of the Ravninnoe asset,  
with an offsetting release of deferred tax of US $ 1.5 million. 43
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
12 Property, plant and equipment
Group
Motor vehicles 
$’000
Buildings 
$’000
Other 
$’000
Total 
$’000
Cost at 1 January 2010 204 599 597 1,400
Additions 105 – 278 383
Disposals (57) – (48) (105)
Reclassifications 62 (138) 76 –
Reclassification to assets held for sale (Note 16) (8) (30) (38) (76)
Disposal of subsidiary (Note 14) (145) – (250) (395)
Recognition of joint venture (Note 17) 34 – 59 93
Cost at 31 December 2010 195 431 674 1,300
Additions 103 – 202 305
Disposals (69) – (40) (109)
Disposal of subsidiary (Note 15) (103) (431) (315) (849)
Recognition of joint venture (Note 17) 35 147 108 290
Foreign exchange difference (1) (1) (5) (7)
Acquisition of subsidiary (Note 14) 110 – 190 300
Cost at 31 December 2011 270 146 814 1,230
Depreciation at 1 January 2010 110 74 320 504
Charge for the period 48 46 173 267
Disposals (25) – (36) (61)
Reclassifications (18) 5 13 –
Reclassification to assets held for sale (Note 16) (3) (12) (13) (28)
Disposal of subsidiary (Note 14) (34) – (39) (73)
Recognition of joint venture (Note 17) 8 – 9 17
Depreciation at 31 December 2010 86 113 427 626
Charge for the period 59 44 194 297
Disposals (47) – (34) (81)
Disposal of subsidiary (Note 15) (15) (155) (127) (297)
Recognition of joint venture (Note 17) 5 53 43 101
Foreign exchange difference (1) (1) (3) (5)
Acquisition of subsidiary (Note 14) 26 – 30 56
Depreciation at 31 December 2011 113 54 530 697
Net book value at:
1 January 2010 94 525 277 896
31 December 2010 109 318 247 674
31 December 2011 157 92 284 533 44
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
12 Property, plant and equipment continued
Company
Motor vehicles 
$’000
Buildings 
$’000
Other 
$’000
Total 
$’000
Cost at 1 January 2010 – – 70 70
Disposals – – (57) (57)
Cost at 31 December 2010 – – 13 13
Disposals – – (13) (13)
Cost at 31 December 2011 – – – –
Depreciation at 1 January 2010 – – 22 22
Charge for the period – – 11 11
Disposals – – (25) (25)
Depreciation at 31 December 2010 – – 8 8
Charge for the period – – 2 2
Disposals – – (10) (10)
Depreciation at 31 December 2011 – – – –
Net book value at:
1 January 2010 – – 48 48
31 December 2010 – – 5 5
31 December 2011 – – – –
13 Investments (Company)
Investments
Company 
$’000
Cost
At 1 January 2010 133,775
Additions –
At 31 December 2010 133,775
Additions –
Disposals* (9,000)
At 31 December 2011 124,775
Impairment
At 1 January 2010 31,253
Impairment in 2010** 6,400
At 31 December 2010 37,653
Impairment in 2011 –
Disposals* (6,400)
At 31 December 2011 31,253
Net book value at:
31 December 2010 96,122
31 December 2011 93,522
*  During the year, Ravninnoe BV sold its 30% share in Ravninnoe LLP as described in Note 16 therefore cost of investments as well as impairment 
recognized in prior years were disposed from the books of the Company.
** The investment in Ravninnoe BV, which held 30% of Ravninnoe Oil LLP, has been impaired during 2010 due to the impairment of oil and gas assets.  45
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
The Company’s principal subsidiary undertakings and Galaz and Company LLP, being jointly controlled entity, which are 
included in these consolidated financial statements are:
Name of undertaking
Country of 
incorporation
Effective holding 
and proportion of 
voting rights held at 
31 December 2011
Effective holding 
and proportion of 
voting rights held at 
31 December 2010 Nature of business
RS Munai BV (formerly Sytero BV) Netherlands 100% 100% Holding company
Beibars BV (formerly Sytero 2 BV) Netherlands 100% 100% Holding company
Ravninnoe BV (formerly Sytero 3 BV) Netherlands 100% 100% Holding company
BNG Energy BV Netherlands 59%* 59%* Holding company
Galaz Energy BV (formerly Sytero 4 BV) Netherlands 59%* 59%* Holding company
RS Munai LLP Kazakhstan 50%* 50%* Exploration company
Beibars Munai LLP Kazakhstan 50%* 50%* Exploration company
Ravninnoe Oil LLP** Kazakhstan 0%* 30%* Exploration company
BNG Ltd LLP Kazakhstan 58%* 23%* Exploration company
Galaz and Company LLP Kazakhstan 34%* 58%* Exploration company
Munaily Kazakhstan LLP Kazakhstan 58%* 58%* Exploration company
Roxi Petroleum Services LLP Kazakhstan 100% 100% Management company
Roxi Petroleum Kazakhstan LLP Kazakhstan 100% 100% Management company
Eragon Petroleum Limited England 59% 59% Holding company
Ada BV Netherlands 100% 100% Dormant
Ada Oil BV Netherlands 100% 100% Dormant
* Indirect shareholding of the Company.
**  Ravninnoe Oil LLP was disposed on 27 December 2011, see Note 16. At 31 December 2011, the Group consolidated profit and losses and cash 
flows related to Ravninnoe OIL LLP.
RS Munai LLP, Beibars Munai LLP, Munaily Kazakhstan LLP, BNG Ltd LLP have been classified as subsidiary undertakings 
rather than as joint ventures since in the opinion of the Directors the Company has operational control of these entities. 
Galaz and Company LLP is a jointly controlled by the Group and as a result, from 11 January 2011 it has been proportionately 
consolidated as a jointly controlled entity as disclosed in Note 15.  46
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
14 BNG reacquisition and disposal
14.1 BNG reacquisition
On 10 May 2011, the Group received back its 35% interest in BNG Ltd LLP from Canamens which increased its share in BNG Ltd 
LLP from 23.41% to 58.41%. In addition, Canamens assigned back to BNG Energy BV its share of loans receivable from the 
operating entity of US $ 23.6 million, representing Canamens share of funding provided to BNG Ltd LLP in 2009 and 2010. In return 
for the assignment of the loan to BNG Energy BV, Roxi Petroleum Plc agreed to pay to Canamens a royalty equivalent to 1.5% of 
the future gross revenues generated from the operating asset. As disclosed in Note 32.3, Canamens share of funding transferred to 
BNG Energy BV was subsequently assigned by BNG Energy BV to Roxi Petroleum plc. 
BNG Ltd LLP was treated as a subsidiary and fully consolidated to the Group’s financials as at 31 December 2011. Before the 
transfer back of interest, BNG Ltd LLP was treated as a jointly controlled entity and proportionally consolidated.
As disclosed in Note 32.1, the Group subsequently entered into a SPA for the sale of 35% of the interest in the BNG Contract Area 
to KNOC.
The determined fair values of the assets and liabilities as at the date the interest was transferred back to the Group was as follows:
Book 
values 
$’000
Loans 
transferred 
$’000
Fair value 
adjustments 
$’000
Fair 
values 
$’000
Unproven oil and gas assets 53,552 – 101,985 155,537
Property, plant and equipment 279 – – 279
Other receivables 5,581 23,600 – 29,181
Cash and cash equivalents 136 – – 136
Borrowings and other payables (74,106) – – (74,106)
Deferred taxation – – (20,397) (20,397)
Net assets (14,558) 23,600 81,588 90,630
Minority interests (27,385)
Net assets of JV previously held (16,600)
Net assets transferred back to the Group 46,645
Cancellation of funding of obligation not paid by 
Canamens 7,763
1.5% of future royalty payment* 5,240
Total 13,003
Net gain recognised in the Income Statement 33,642
Related cash flows:
– Loans repaid (2,500)
– Cash acquired 136
(2,364)
* Future royalty payment to Canamens is recorded within other non-current payables.
As a result of the change in the basis of consolidation of BNG Ltd LLP, from the proportional consolidation method to the full 
consolidation basis, a release of US $ 2 million of cumulative translation reserves arose during the period. This represents the 
proportion of previously capitalised translation losses attributed to the previously held joint interest, now written off during 
the period.  47
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
14.2 BNG disposal
During 2009, the Company entered into a sale and purchase agreement (“SPA”) to dispose of 35% of its interest in BNG Ltd 
LLP. The structure of the deal was in two stages, as follows:
(a) Stage 1
On 15 January 2009, the Group and Canamens BNG BV (part of Canamens Group) signed a farm out agreement for BNG Ltd 
LLP. This agreement was amended during 2009 in April, July, September and December.
Under the terms of the restated agreement, Canamens BNG BV agreed to purchase 23% of the equity and 23% of the loan 
receivables of BNG Ltd LLP for a total consideration of US $ 34 million (“Stage 1”) payable to BNG Energy BV.
Under the terms of the SPA, BNG Energy BV was required to lend (“BNG Loan 1”) to BNG Ltd LLP US $ 27 million of the 
proceeds. Although the funds were passed down in full by BNG Energy BV, 23% of the repayments were required to be made to 
Canamens. This loan was restated on completion of Stage 2, so that 35% of the loan amount was repayable to Canamens with 
the remaining 65% being repayable to BNG Energy BV.
This stage of the transaction was completed on 11 January 2010.
(b) Stage 2
Additionally, under the farm-out agreement, Canamens acquired an option to purchase a further 12% of the equity and the loan 
receivables (including BNG Loan 1) of BNG Ltd LLP for a total consideration of US $ 23 million (“Stage 2”) payable to BNG Energy BV.
On 30 April 2010, Canamens exercised this option.
Under the terms of the agreement, BNG Energy BV was required to loan (“BNG Loan 2”) to BNG Ltd LLP all US $ 23 million of  
the proceeds. Although the funds passed down in full by BNG Energy BV, 35% of the repayments were required to be made to 
Canamens with the remaining 65% being made to BNG Energy BV.
This stage of the transaction was completed on 30 April 2010.
Following the completion of Stage 2 above, the Company retained an effective interest in BNG Ltd LLP of 23.41%.
The Company subsequently agreed to cancel the SPA for the purchase of shares in BNG Ltd LLP by Canamens (see note 14.1 
for further information).
The loss on disposal of BNG Ltd LLP was determined as follows:
Stage 1:
At date of disposal 
$’000
Non-current assets 134,954
Inventories 42
Trade and other receivables 3,869
Cash and cash equivalents 352
Trade and other payables (43,931)
Non-current liabilities (18,077)
Net assets at date of disposal 77,209
Total consideration 34,000
Less: 23% of net assets on disposal 17,758
Less: transfer of intercompany amounts payable 13,234
Gain on disposal before the effect of cumulative translation reserve 3,008
Less: Release of cumulative translation reserve* 10,504
Loss on disposal 7,496 48
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
14 BNG reacquisition and disposal continued
14.2 BNG disposal
Stage 2:
At date of disposal 
$’000
Non-current assets 140,312
Inventories 441
Trade and other receivables 2,104
Cash and cash equivalents 379
Trade and other payables (47,377)
Non-current liabilities (18,250)
Net assets at date of disposal 77,609
Total consideration 23,000
Less: 12% of net assets on disposal 9,313
Less: transfer of intercompany amounts payable 15,054
Loss on disposal before the effect of cumulative translation reserve 1,367
Less: Release of cumulative translation reserve* 5,480
Loss on disposal 6,847
The net cash inflow on disposal comprises:
Cash received 39,255
Cash disposed of (352)
Net cash inflow 38,903
*  the US $ 15.9 million release of cumulative translation reserves arose from the disposal of the Company’s 35% interest in BNG Ltd LLP to 
Canamens. This represents the proportion of previously capitalised translation losses attributed to the proportion of interest sold, now written off 
during the period. 
Of the US $ 57 million purchase consideration US $ 4.5 million was withheld by Canamens Energy BV in order to pay withholding 
tax on the capital gain. 
From the date of disposal and until the date of reacquisition, BNG Ltd LLP was treated as a jointly controlled entity and 
proportionally consolidated. 49
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
15 Galaz disposals and acquisition
15.1 Galaz disposal:
During 2011, the Group entered into a sale and purchase agreement (“SPA”) with LGI, to dispose of 40% of its interest in 
Galaz and Company LLP. Under the terms of the agreement, LGI agreed to purchase 40% of the equity for a total 
consideration of US $ 15.6 million from the Group and agreed to lend Galaz and Company LLP US $ 34.4 million to develop 
the field.
This transaction completed on 20 January 2011.
The gain on disposal of Galaz and Company LLP was determined as follows:
At date of disposal
 $’000
Total consideration 15,600
Non-current assets 41,317
Inventories 200
Trade and other receivables 12
Cash and cash equivalents 2,193
Trade and other payables (9,088)
Non-current liabilities (24,689)
Net assets at date of disposal 9,945
Less: 40% of net assets on disposal 3,978
Gain on disposal before the effect of cumulative translation reserve 11,622
Less: Release of cumulative translation reserve
1
1,924
Gain on disposal 9,698
The net cash inflow on disposal comprises:
Cash received
2
13,723
Cash disposed of (2,193)
Net cash inflow 11,530
1
  the US $ 1.9 million release of cumulative translation reserves arose from the disposal of the Company’s 40% interest in Galaz and Company 
LLP to LGI. This represents the proportion of previously capitalised translation losses attributed to the proportion of interest sold, now 
written off during 2011. 
2
  of the US $ 15.6 million purchase consideration US $ 1.9 million was withheld by LGI in order to pay withholding tax on the capital gain that 
arose in Galaz Energy BV. 
Until the date of disposal, Galaz and Company LLP was treated as a subsidiary and was fully consolidated into the financial 
statements of the Group. From the date of disposal, Galaz and Company LLP was treated as a jointly controlled entity and 
proportionally consolidated.
15.2 Galaz acquisition
On 21 July 2010, Galaz Energy BV acquired an additional 13% in its subsidiary Galaz and Company LLP for a total 
consideration of US $ 3.4 million that increased Company’s interest from 50% to 58%. The corresponding share of net 
assets of Galaz and Company LLP at the date of acquisition was equal to US $ 1 million. The difference between the 
purchase consideration and net assets was charged directly to the consolidated statement of changes in equity. 50
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
16 Ravninnoe disposal
During 2011, the Group entered into a sale and purchase agreement (“SPA”) to dispose of its remaining 30% interest in Ravninnoe 
Oil LLP. Under the terms of the agreement, Beimar Oil LLP agreed to purchase 30% of the equity for a total consideration of US $ 2.6 
million from the Group. Out of US $ 2.6 million consideration the Group wrote off as bad debt US $ 1.2 million during the year.
This transaction completed on 22 December 2011.
The gain on disposal of Ravninnoe OIl LLP was determined as follows:
At date of disposal 
$’000
Total net consideration 1,450
Non-current assets 31,218
Inventories 170
Trade and other receivables 1,276
Cash and cash equivalents –
Trade and other payables (24,171)
Non-current liabilities (23,709)
Net assets at date of disposal (15,216)
Less: 30% of net assets on disposal (4,564)
Gain on disposal before the effect of cumulative translation reserve 6,014
Less: Release of cumulative translation reserve
1
984
Gain on disposal 5,030
The net cash inflow on disposal comprises:
Cash received
2
1,450
Cash disposed of –
Net cash inflow 1,450
1
  the US $ 1 million release of cumulative translation reserves arose from the disposal of the Company’s 30% interest in Ravninnoe Oil LLP to  
Beimar Oil LLP. This represents the proportion of previously capitalised translation losses attributed to the proportion of interest sold, now  
written off during 2011. 
2
 out of US $ 1.5 million received, US $ 1 million was received in prior years. 51
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Until the date of disposal, Ravninnoe Oil LLP was treated as a jointly controlled entity and presented as an investment held for 
sale. The following major classes of assets and liabilities relating to these operations have been classified as held for sale in  
the consolidated statement of financial position at 31 December 2010: 
$’000
Unproven oil and gas assets 7,595
Other receivables 664
Property, plant and equipment 48
Inventories 49
Cash and cash equivalents 1
8,357
$’000
Trade and other payables 491
Borrowings 5,747
Current provisions 668
6,906
1,451
An impairment loss of US $ 18.2 million and release of corresponding deferred tax of US $ 1.5 million on the measurement of  
the disposal Group to fair value less cost to sell has been recognised and is included in administrative expenses of continuing 
operations during 2010. Ravninnoe Oil LLP division does not constitute a discontinued operation as it does not represent a 
major line of business or geographical area of operation.
From the date of disposal, the Group does not have any interest in Ravninnoe OIL LLP.
17 Jointly controlled entity
From 20 January 2011, the Group has a 34.22% interest in the jointly controlled entity Galaz and Company LLP which has  
been accounted for using the proportional consolidation method. The following amounts have been recognised in the Group’s 
consolidated statement of financial position relating to this jointly controlled entity.
2011
$’000
Non-current assets 16,658
Current assets 601
Total assets 17,259
Non-current liabilities 10,925
Current liabilities 4,399
Total liabilities 15,324
Expenses (895)
Loss after tax (895)
Galaz and Company LLP’s contingent liabilities and capital commitments are disclosed in Note 25.
Until 20 January 2011, Galaz and Company LLP was treated as a subsidiary and was fully consolidated into the Group accounts. 
In 2010, the Group’s 23.41% interest in the jointly controlled entity BNG Ltd LLP has been accounted for using the proportional 
consolidation method. The following amounts have been recognised in the Group’s consolidated statement of financial position 
relating to this jointly controlled entity, in the period ended 31 December 2010. 52
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
17 Jointly controlled entity continued
2010
$’000
Non-current assets 36,236
Current assets 742
Total assets 36,978
Non-current liabilities 10,927
Current liabilities 10,559
Total liabilities 21,486
Expenses (921)
Loss after tax (921)
Until 10 May 2011, BNG Ltd LLP was treated as a jointly controlled entity. On 10 May 2011, the Group received back its 35% 
interest in BNG Ltd LLP from Canamens and started to treat BNG Ltd LLP as a subsidiary and fully consolidated into the Group 
accounts (Note 14).
18 Inventories
 
Group
2011
$’000
Company
2011
$’000
 Group
2010
$’000
Company
2010
$’000
Materials and supplies 1,689 – 762 –
 1,689 – 762 –
Materials and supplies are principally comprised of concrete slabs, goods and some tubing to be used in the exploration and 
development of the Group’s oil and gas properties in Kazakhstan. All amounts are held at the lower of cost and net realisable value.
19 Other receivables
 
Group
2011
$’000
Company
2011
$’000
Group
2010
$’000
Company 
2010
$’000
Amounts falling due after one year:
Advances paid – – 600 –
Intercompany receivables – 16,261 – 10,765
Deferred tax asset 3,442 3,442 – –
Other receivables 9,242 – 15,187 24
Amounts due from joint venture 6,421 – 33,314 –
19,105 19,703 49,101 10,789
Amounts falling due within one year:
Advances paid 413 – 132 7
Prepayments 80 29 41 39
Other receivables 218 39 1,575 190
 711 68 1,748 236
Other receivables falling due after one year includes Kazakh VAT and an amount of US $ 5.4 million (2010: US $ 5 million) in respect 
of a loan facility described in Note 31.2. The carrying amount of other receivables is a reasonable approximation of fair value.
At 31 December 2010, other receivables falling after one year includes an amount of US $ 7.8 million in respect of an indemnity 
against a loan included within short-term borrowings as described in Note 24. During the year the Group signed a novation 
agreement with Mr Oraziman whereby Mr Oraziman agreed to release the Group from any liability under that loan. As a result the 
loan and related indemnity receivable was written off from the Group’s books, (Note 24).
Amounts due from joint venture relate to Galaz and Company LLP and Ravninnoe Oil LLP and are shown net of provision of  
US $ 18.1 million (2010:US $ 12 million) and bear interest at rates between LIBOR + 2% to LIBOR + 7%.  53
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Advances paid relate to amounts paid to third parties for services and materials to be provided post year end. 
Intercompany receivables are shown net of provision of US $ 34.5 million (2010: US $ 34.5 million), and bear interest rates  
between LIBOR + 2% and LIBOR + 7%. 
20 Cash and cash equivalents
 
Group
2011
$’000
Company
2011
$’000
Group
2010
$’000
Company 
2010
$’000
Cash at bank and in hand 1,546 1,067 4,959 2,194
Funds are held in US Dollars, Sterling, Euros, Kazakh Tenge and other foreign currency accounts to enable the Group to trade 
and settle its debts in the local currency in which they occur and in order to mitigate the Group’s exposure to short-term foreign 
exchange fluctuations. All cash is held in floating rate accounts.
Denomination
Group
2011
$’000
Company
2011
$’000
Group
2010
$’000
Company
2010
$’000
US Dollar 1,501 1,063 4,808 2,135
Sterling 81 2 51 51
Kazakh Tenge 3 2 106 8
Euro (39) – (6) –
1,546 1,067 4,959 2,194
During 2010, for the purpose of the consolidated statement of cash flow, cash and cash equivalents included also cash related 
to assets classified as held for sale in the amount of US $ 1,000.
21 Called up share capital
Group and Company
Number of 
ordinary shares $’000
Balance at 31 December 2009 417,182,165 7,772
Ordinary shares issued 
1
 15 February 2010 36,221 5
Ordinary shares issued 
2
9 April 2010 3,600,000 55
Balance at 31 December 2010 420,818,386 7,832
Borrowings converted to equity 
3
29 September 2011 188,771,895 2,945
Balance at 31 December 2011 609,590,281 10,777
1
 These shares were issued for cash on exercising of warrants.
2
 Ordinary shares issued to the warrant holder pursuant to the terms of the deeds of the warrant.
3
 These shares were issued in exchange for debt conversion as described in Note 24.
On 28 May 2009, each of the issued ordinary shares of 10p each in the capital of the Company were subdivided and re-designated 
(in the case of the deferred shares) into one ordinary share of 1p in the capital of the Company and one deferred share of 9p in the 
capital of the Company. Additionally, each of the authorized but unissued ordinary shares of 10p each were subdivided into 10 
ordinary shares of 1p each. 
The holders of the Deferred Shares have no right to receive notice of any general meetings of the Company; to attend, speak or 
vote at any such general meeting; receive any dividend or other distribution or to participate in any way in the income or profits 
of the Company; or participate in the assets of the Company save that on the return of assets in a winding up, the holders of 
Deferred Shares are entitled only to the repayment of the amount that is paid up on such shares after: (i) repayment of the 
capital paid up on the ordinary share capital; and (ii) the payment of £10,000,000 per ordinary share in the capital of the 
Company. The limited rights attached to the Deferred Shares (which are not being listed or freely transferable) render them 
effectively valueless.  54
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
22 Trade and other payables – current
 
Group
2011
$’000
Company 
2011
$’000
Group
2010
$’000
Company 
2010
$’000
Trade payables 3,348 709 2,709 321
Taxation and social security 190 4 99 36
Accruals 283 232 535 500
Other payables 3,216 – 3,518 2
Intercompany payables – 3,954 – 10,855
Deferred income – – 50 –
7,037 4,899 6,911 11,714
23 Purchase consideration received in advance
Group
2011
$’000
Company
2011
$’000
Group
2010
$’000
Company 
2010
$’000
Purchase consideration received in advance – – 14,213 –
– – 14,213 –
As at 31 December 2010, the Purchase consideration received in advance of US $ 13.7 million relates to amounts received in 
advance from LGI in respect of the acquisition of 40% of Galaz and Company LLP. 
24 Short-term borrowings
 
Group
2011
$’000
Company
2011
$’000
Group
2010
$’000
Company 
2010
$’000
Interest free loan from Mr Oraziman (a) – – 3,960 3,960
Interest bearing loan from Mr Oraziman (b) – – 7,961 –
Loan from Raditie (c) 2,500 – – –
Other borrowings 1,283 500 2,088 500
3,783 500 14,009 4,460
(a)  At 31 December 2010, the principal amount of US $ 4.6 million represents an interest free loan from Mr Oraziman that  
was initially repayable on 2 July 2010. On 14 May 2010, Mr Oraziman agreed to extend the repayment of this loan to July 2011 as 
a result the loan was fair valued at this date and subsequently accounted for at amortised cost. On 26 April 2011, the loan 
agreement was amended by extending its repayment terms to July 2012; also the loan became interest bearing with an annual 
rate of 12%. On September 29, 2011 the Company has agreed with Mr Oraziman that US $ 9.4 million of the Company’s 
indebtedness to him and companies with which he is associated be converted into 188,771,895 of new Roxi shares at a 
conversion price of 3.2p per share, (Note 21). Out of US $ 9.4 million Company’s indebtedness at 29 September 2011,  
US $ 4.6 million is represented by this loan. The residual part of converted loans relates to Vertom, (Note 26).  
(b)  At 31 December 2010, the US $ 5 million interest bearing loan from Mr Oraziman was repayable together with accrued 
interest in July 2011. This loan bears interest at LIBOR +7%. The loan is the subject of the Baverstock Indemnity described in 
Note 31.2. On 26 April 2011, the loan agreement was amended by extending its repayment terms to July 2012. During 2011, 
the Group signed a novation agreement with Mr Oraziman whereby Mr Oraziman agreed to release the Group from any 
liability under this loan agreement. As a result the loan and related indemnity receivable was written off from the Group’s 
books, (Note 19).
(c)  The Group entered into a short-term interest free loan arrangement with Raditie NV on 10 November 2011 whereby Raditie NV lent 
US $ 2.5 million to the Group. Raditie NV has the right to convert this loan to 30% in Munaily Kazakhstan LLP. 55
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
25 Provisions
Group only
Employee 
holiday 
provision
Liabilities 
under Social 
Development 
Program
Abandonment 
fund
2010 
Total 
$’000
Balance at 1 January 2010 1,304 5,256 1,868 8,428
Increase in provision 103  41 219  363
Paid in year (211) (837) – (1,048)
Unwinding of discount – 26 63 89
Change in estimates (799) (1,180) (1,283) (3,262)
Foreign exchange difference 7 68 10 85
Reclassification to assets held for sale (Note 16) (4) (444) (220) (668)
Disposal of subsidiary (62) (709) (197) (968)
Addition of joint venture 16 166 46 228
Balance at 31 December 2010 354 2,387 506 3,247
Non-current provisions – 189 506 695
Current provisions 354 2,198 – 2,552
Balance at 31 December 2010 354 2,387 506 3,247
Group only
Employee 
holiday 
provision
Liabilities 
under Social 
Development 
Program
Abandonment 
fund
2011 
Total 
$’000
Balance at 1 January 2011 354 2,387 506 3,247
Increase in provision (195) 482 398 685
Paid in year (18) (137) – (155)
Unwinding of discount – 36 54 90
Foreign exchange difference (3) (24) (14) (41)
Acquisition of subsidiary (Note 14) 47 1,114 196 1,357
Disposal of subsidiary (12) (80) (604) (696)
Addition of joint venture 4 28 207 239
Balance at 31 December 2011 177 3,806 743 4,726
Non-current provisions – 589 743 1,332
Current provisions 177 3,217 – 3,394
Balance at 31 December 2011 177 3,806 743 4,726 56
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
25 Provisions continued
Liabilities and commitments in relation to Subsoil Use Contracts are disclosed below: 
a) Beibars Munai LLP
During 2007 Beibars Munai LLP, a subsidiary undertaking, and the Ministry of Energy and Mineral Resources of the Republic of 
Kazakhstan signed a Contract for oil exploration within the block XXXVII-10 in Mangistauskaya oblast (Contract #2287). The 
contract term expired in January 2012 and the Group has applied to the Ministry of Oil and Gas for the extension of the Beibars 
exploration license, given the force major situation.
In accordance with the terms of the contract Beibars Munai LLP committed to the following:
•	 Investing not less that 5% of annual capital expenditures on exploration during the exploration period in professional  
training of Kazakhstani personnel engaged in work under the contract;
•	 Investing US $ 1 million* to the development of Astana City during the second year of the contact term;
•	 Investing US $ 1 million* in equal tranches over the exploration period in the social development in the region; and
•	 Transferring, on an annual basis, 1% of exploration expenditures to a liquidation fund through a special deposit account  
in a bank located within the Republic of Kazakhstan.
Beibars Munai LLP did not fulfil its obligations under the social program in 2011 and 2010 due to force-major circumstances  
(see Note 11).
* Unpaid amounts in respect of the above social obligations are included within liabilities of social programs above.
b) Munaily Kazakhstan LLP
Munaily Kazakhstan LLP, a subsidiary, signed a contract # 1646 dated 31 January 2005 with the Ministry of Energy and Mineral 
Resources of RK for the exploration and extraction of hydrocarbons on Munaily deposit located in the Atyrau region.
The contract is valid for 25 years. On 13 July 2011, Munaily Kazakhstan LLP and a competent authority signed Addendum No. 5 
to the Subsoil Use Contract, which stipulates the oil production period to be 15 years to 2025 and approves the minimum work 
program for the production period.
In accordance with the terms of the contract and addendums Munaily Kazakhstan LLP remains committed to the following:
•	 Social development of Atyrau region – US $ 600,000* over the period of the contract;
•	 To allocate US $ 400,000* to the Astana city development program;
•	 Professional education of engaged Kazakhstan personnel – not less than 1% of total investments;
•	 Transferring, on an annual basis, 1% of exploration expenditures to a liquidation fund through a special deposit account  
in a bank located within the Republic of Kazakhstan; 
•	 To fund the minimum work program during the 15 year production period of US $ 29.3 million; and
•	 Once the production stage begins, to pay the remaining part of historical costs of US $ 1.6 million within 10 years in  
equal quarterly instalments.** 
* Unpaid amounts in respect of the above social obligations are included within liabilities for social programs above.
** Unpaid amounts in respect of the above historical obligations are included within other non-current payables. 57
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
c) BNG Ltd LLP 
BNG Ltd LLP a subsidiary, signed a contract #2392 dated 7 June 2007, with the Ministry of Energy and Mineral Resources of RK 
for exploration at Airshagyl deposit, located in Mangistau region. Under addendum No. 1 dated 17 April 2008, the contract area 
was increased. The contract was valid for 4 years and expired on 7 June 2011. Addendum No. 6 to the Subsoil Use Contract for 
extension of exploration period up to June 2013 was obtained on 13 July 2011.
In accordance with the terms of the contract and addendums, BNG Ltd LLP remains committed to the following:
•	 Investing US $ 5 million* over the initial exploration period in the social development in the region;
•	 For the two-year extension period up to 2013 US $ 625,000 per annum should be invested in the social development of  
the region*;
•	 If a production license is granted a further US $ 2.5 million should be invested in the social development of the region;
•	 To fund minimum work program during the extended exploration period of US $ 17.3 million;
•	 Investing not less than 1% of total investments in professional training of Kazakhstani personnel engaged in work under  
the contract; and
•	 Transferring, on an annual basis, 1% of exploration expenditures to a liquidation fund through a special deposit account in  
a bank located within the Republic of Kazakhstan. 
* Unpaid amounts in respect of the above social obligations are included within liabilities for social programs above.
d) Galaz and Company LLP
Galaz and Company LLP, a subsidiary undertaking, signed an exploration contract #593 dated 12 December 2000 in respect of 
the North-West Konys deposit located in Kyzyl-Orda region. On 10 January 2011, the Ministry of Oil and Gas extended the 
contract territory under exploration of Galaz and Company LLP and on 16 February 2011 the exploration contract of Galaz and 
Company LLP was granted an extension of two years to 14 May 2013.
In accordance with the terms of the contract and addendums Galaz and Company LLP remains committed to the following:
•	 Investing 3% of total exploration expenditures for the social development of the region and 2% for social infrastructure 
development, with a further US $ 120,000 to be allocated to the Kyzyl-Orda Contract under Annex No 2; in accordance  
with Addendum No. 5 to allocate additional US $ 302,030 for the social development of the region by the end of 2011*;
•	 Investing not less than 1% of total investments in professional training of Kazakhstani personnel engaged in work under  
the contract;
•	 To create a liquidation fund in an amount of US $ 179,580 by providing financial and bank guarantees;
•	 To pay royalties of 2.5% of hydrocarbons volume produced in the event of test production of hydrocarbons under the 
Kzyl-Orda Contract; and
•	 To fund a minimum work program during the extended exploration period of US $ 23.9 million.
* Unpaid amounts in respect of the above social obligations are included within liabilities for social program above. 58
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
26 Borrowings
 
Group
2011
$’000
Company
2011
$’000
Group
2010
$’000
Company
2010
$’000
Loan from JV partner to BNG Ltd LLP (a) – – 5,514 –
Loan from JV partner to BNG Energy BV (b) – – 1,926 –
Loan from LGI (c) 9,389 – 20,378 –
Loan from Vertom (d) 2,728 2,728 – –
12,117 2,728 27,818 –
(a)  As at 31 December 2010, the amount represented Group’s share of debt owed by BNG Ltd LLP to Canamens, as a result of 
its acquisition of 35% interest in BNG Ltd LLP. On 10 May 2011 the Group received back its 35% interest in BNG Ltd LLP 
from Canamens as well as Canamens’s share of loans in BNG Ltd LLP, (Note 14). 
(b)  As at 31 December 2010, the loan due to Canamens represented the Group’s share of debt owed by BNG Energy BV to 
Canamens, as a result of its acquisition of 35% interest in BNG Ltd LLP. On 10 May 2011, the Group received back its 35%  
interest in BNG Ltd LLP from Canamens as well as Canamens’s share of loans in BNG Energy BV, (Note 14).
(c)  The loan due to LGI represents the Group’s share of debt owed by Galaz and Company LLP to LGI, as a result of its 
acquisition of 40% interest in Galaz and Company LLP, as at 31 December 2011 and 2010.
(d)  On 26 April 2011, the Group entered into a two year unsecured loan facility agreement with Vertom International NV (“Vertom”), 
whereby Vertom agreed to lend up to US $ 6 million to the Group with an associated interest of 12% per annum.  
The loan was repayable out of the proceeds from subsequent farm-out arrangements or from first production from its 
operating assets. On 29 September 2011, the Company has agreed with Mr Oraziman that US $ 9.4 million of the Company’s 
indebtedness to him and companies with which he is associated be converted into 188,771,895 of new Roxi shares at a 
conversion price of 3.2p per share. Out of US $ 9.4 million Company’s indebtedness at 29 September 2011, US $ 4.8 million  
is represented by Vertom loan. The residual part of converted loans relates to Mr Oraziman loan, (Note 24). 
As at 31 December 2011 the outstanding amount is represented by a two year loan facility with Vertom entered by the Company 
on 29 September 2011, whereby Vertom agreed to lend up to US $ 5 million to the Company with an associated interest of 12% 
per annum. The Company has offered Vertom security over its investments in its operating assets in respect to this loan facility.
Subsequently on 30 April 2012 the Group extended the term of the loan facility arrangement with Vertom for a further two years 
to 30 April 2014 and at the same time increased the facility amount to US $ 7 million, (Note 32.2). 59
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
27 Deferred tax
Deferred tax liabilities comprise:
Group 
2011 
$’000
 Group 
2010 
$’000
Deferred tax on exploration and evaluation assets acquired 8,953 8,725
8,953 8,725
In accordance with IAS 12 the Group recognises deferred taxation on fair value uplifts to its oil and gas projects arising on 
acquisition. These liabilities reverse as the fair value uplifts are depleted or impaired.
The movement on deferred tax liabilities was as follows:
Group 
2011 
$’000
Group 
2010 
$’000
At beginning of the period 8,725 20,010
Acquisition of subsidiary 15,395 –
Foreign exchange (324) 50
Increase in tax rate – 1,687
Disposal of subsidiary (3,722) (15,052)
Recognition of joint venture 1,274 3,524
Impairment of oil and gas asset (12,395) (1,494)
 8,953 8,725
The Group also has accumulated estimated tax losses of approximately US $ 82 million (2010: US $ 40 million) available  
to carry forward and offset against future profits. This represents an unprovided deferred tax asset of approximately 
US $ 16 million (2010: US $ 8 million).
The increase of deferred tax liability in 2010 mainly related to changes in future tax rates, and represented the Directors’ best 
estimate of future tax rates in Kazakhstan of 20% (Note 9). 60
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
28 Share option scheme
During the year, the Company issued equity-settled share-based instruments to its Directors and certain employees. Equity-
settled share-based instruments have been measured at fair value at the date of grant. The fair value determined at the grant 
date of the equity-settled share-based instrument is expensed on a straight-line basis over the vesting period, based on an 
estimate of the shares that will eventually vest. Options generally vest in four equal tranches over the two years following grant.
Share options
Number of 
options
Weighted 
average 
exercise 
price in 
pence (p) 
per share
As at 1 January 2010 37,075,533 47
Granted 2,950,000 12
Expired (7,093,231) 65
Expired (5,786,338) 38
Expired (2,314,535) 12
As at 31 December 2010 24,831,429 43
Granted 13,190,000 13
Granted 18,500,000 4
Expired (200,000) 12
As at 31 December 2011 56,321,429 23
There were 34,857,005 (2010: 18,901,956) share options exercisable at the end of the year with a weighted average exercise 
price of 32p (2010: 45p).
The options were issued to Directors and employees as follows:
Share options
Number 
of options 
granted
Number 
of options 
expired Reclassifications
Total options 
outstanding
Weighted 
average 
exercise 
price in 
pence (p) 
per share Expiry
As at 31 December 2009 38,868,226 (1,792,693) – 37,075,533 47
Directors 2,950,000 – (20,224,605) 11,160,592 38
15 February 2020
and 
22 June 2020
Employees and others – (15,194,104) 20,224,605 13,670,837 50 –
As at 31 December 2010 41,818,226 (16,986,797) – 24,831,429 43
Directors 28,340,000 – – 39,500,592 16
12 January 2021 
and
 14 December 2021
Employees and others 3,350,000 (200,000) – 16,820,837 40
12 January 2021, 
1 May 2021 
and 
14 December 2021
As at 31 December 2011 73,508,226 (17,186,797) – 56,321,429 23 61
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
The range of exercise prices of share options outstanding at the year end is 4p–65p (2010: 12–65p). The weighted average 
remaining contractual life of share options outstanding at the end of the year is 8.23 years (2010: 7.51 years).
Fair value is measured using a binomial lattice model that takes into account the effect of financial assumptions, including the 
future share price volatility, dividend yield, and risk-free interest rates. The expected volatility was determined based on both the 
volatility of the Company’s share price since flotation and the volatility of similar quoted companies. Employee exit rates and the 
expected period from vesting to exercise are also considered, based on historical experience. The principal assumptions are:
2011 2010
Expected volatility (%) 80 80
Expected life (periods) 3 5
Risk-free rate (%) 2.85 2.84
Fair value per option (p) 1-7 4-6
29 Warrants issued
Following table summarises warrants outstanding at the end of the year:
Number $’000
Description Grant Exercised Year End Grant Exercised
Income 
Statement 
effect Year End Expiry date
GEM Global Yield  
Fund Limited 
1
– – 9,000,000 – – 225 84
26 May 
2014
Altius Energy 
2
– – – – – 23 –
31 March
 2011
Total – – 9,000,000 – – 248 84
1.
  The Company entered into a £15 million equity line of credit with GEM Global Fund Limited in return for 9,000,000 warrants. The Company can 
require GEM to subscribe for shares over a 3 year period from May 2009 at an issue price of 90% of an average close bid price for the 15 trading 
days following the delivery of the subscription notice. The warrants were initially recognised at a fair value of US $ 1.1 million and have been 
re-valued at the year end to US $ 84,000 (2010: US $ 309,000) with the difference being credited to the income statement due to the exercise 
price of the warrants being in sterling and the functional currency being US dollar. 
2.
  Mr Oraziman agreed to subordinate $14.6 million of loans made to the Group to the US $ 5 million loan entered into with Altius Energy Limited. 
US $ 10 million of the loans were restated on similar terms as Altius Energy Limited’s loan, including the issue of 36,000,000 warrants which 
were valued at US $ 3 million. This amount has reduced the fair value of US $ 10 million loan to Galaz Energy BV. On 29 June 2009 Mr Oraziman 
transferred his 36,000,000 warrants to Altius Energy Limited. During 2009 and 2010 6,732,500 warrants were exercised; also pursuant to the 
terms of the deeds of warrant 56,335 additional warrants were issued during 2010. On 31 March 2011, 29,323,835 warrants issued to Altius 
Energy had not been exercised and expired. The Group wrote off its warranty liability to Altius Energy Limited’s to nil. 
During the period ended 31 December 2007, the Company issued warrants over 10,023,112 Ordinary shares of the Company. 
These warrants entitle the holders to subscribe for Ordinary shares for cash consideration of 38p per Ordinary Share, and were 
issued as consideration for corporate and advisory services to the Company prior to its flotation. Warrants over 7.5 million 
shares may be exercised at any time prior to 21 May 2017, while the remaining 2.5 million shares expired on 21 May 2010, 
resulted to movement in the Consolidated and Parent Statements of Changes in Equity.
Total number of warrants that remained outstanding at the year end was 16,500,000 (2010: 45,823,835).  62
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
30 Financial instrument risk exposure and management
In common with all other businesses, the Group and Company are exposed to risks that arise from its use of financial instruments. 
This note describes the Group and Company’s objectives, policies and processes for managing those risks and the methods used 
to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.
The significant accounting policies regarding financial instruments are disclosed in Note 1.
There have been no substantive changes in the Group or Company’s exposure to financial instrument risks, its objectives, policies 
and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in 
this note.
Principle financial instruments
The principle financial instruments used by the Group and Company, from which financial instrument risk arises, are as follows:
Financial assets
Group 
2011 
$’000
Company 
2011 
$’000
Group 
2010 
$’000
Company 
2010 
$’000
 Loans and receivables
Intercompany receivables – 16,261 – 10,765 
Amounts due from joint venture 6,421 – 33,314 –
Other receivables – current* 218 39 9,932  190 
Other receivables – non-current 5,752 1 12,990  1 
Cash and cash equivalents 1,546 1,067 4,959  2,194 
 13,937 17,368 61,195  13,150
* This amount in 2010 includes assets in disposal Group classified as held for sale.
As at 31 December 2011 and 2010, the carrying value of available for sale financial assets for the Group and Company was US $ Nil.
Financial liabilities
Group 
2011 
$’000
Company 
2011 
$’000
Group 
2010 
$’000
Company 
2010 
$’000
 Financial liabilities at amortised cost
Trade and other payables* 6,847 4,895 13,667  11,697 
Other payables – non-current 8,984 5,240 1,019 – 
Borrowings – current 3,783 500 14,009  4,460 
Borrowings – non-current 12,117 2,728 27,818 – 
Purchase consideration received in advance – – 14,213 – 
 31,731 13,363 70,726  16,157 
* This amount in 2010 includes liabilities directly associated with assets in disposal Group classified as held for sale.
As at 31 December 2011, the carrying value of financial liabilities measured at fair value through profit and loss for the Group and 
Company was US $ 84,000 (2010: Group and Company US $ 332,000). These are described in Note 29. 63
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Fair value of financial assets and liabilities
At 31 December 2010 and 2011, the fair value and the book value of the Group and Company’s financial assets and liabilities 
was as follows:
Group and Company
Fair value measurements at 31 December 2011
Level 1 
$’000
Level 2 
$’000
Level 3 
$’000
Financial Asset – – –
Available for sale – – –
Financial Liability – – 84
Warrant liability – – 84
Group and Company
Fair value measurements at 31 December 2010
Level 1 
$’000
Level 2 
$’000
Level 3 
$’000
Financial Asset – – –
Available for sale – – –
Financial Liability – – 332
Warrant liability – – 332
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a 
current transaction between willing parties, other than in a forced or liquidation sale.
The available for sale asset was initially recognised to fair value the benefit derived from the Group having access to the GEM 
facility which can be utilised immediately at the request of the Company. Initially, the asset was recognised the same value as 
the underlying warrants (see Note 29.1) issued to secure the asset facility. Subsequently, the fair value was reduced to nil as the 
Directors do not anticipate the utilisation of the facility prior to expiry. 
The fair value of the warranty liability was initially recognised utilising the Black-Scholes model based on the underlying contract 
terms. The fair value is recalculated when warrants are issued, exercised, expired or at year end utilising the Black-Scholes 
model. The model takes into account the effect of financial assumptions, including the future share price volatility, risk-free 
interest rates and expected life.  64
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
30 Financial instrument risk exposure and management continued
During 2011 and 2010, the movement in Group and Company’s financial assets and liabilities was as follows:
Financial Asset
2011 
$’000
2010 
$’000
Balance at the beginning of the year – 1,106
Change in value taken to the Income Statement – (1,106)
Balance at 31 December – –
Financial Liability
2011 
$’000
2010 
$’000
Balance at the beginning of the year 332 1,630
Exercise of warrant taken to Retained Earnings – (92)
Change in value taken to the Income Statement (248) (1,206)
Balance at 31 December 84 332
Principal financial instruments
The principal financial instruments used by the Group and Company, from which financial instrument risk arises, are as follows:
•	 other receivables
•	 cash at bank
•	 trade and other payables
•	 borrowings
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group and Company’s risk management objectives and policies 
and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that 
ensure the effective implementation of the objectives and policies to the Group and Company’s finance function. The Board 
receives regular reports from the finance function through which it reviews the effectiveness of the processes put in place and 
the appropriateness of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the  
Group and Company’s competitiveness and flexibility. Further details regarding these policies are set out below:
Credit risk
Credit risk arises principally from the Group’s other receivables. It is the risk that the counterparty fails to discharge its  
obligation in respect of the instrument. The maximum exposure to credit risk equals the carrying value of these items in  
the financial statements. 
When commercial exploitation commences sales will only be made to customers with appropriate credit rating. 
Credit risk with cash and cash equivalents is reduced by placing funds with banks with high credit ratings. 65
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Capital
The Company and Group define capital as share capital, share premium, deferred shares, shares to be issued, capital 
contribution reserve, other reserves, retained earnings and borrowings. In managing its capital, the Group’s primary objective is 
to provide a return for its equity shareholders through capital growth. Going forward the Group will seek to maintain a gearing 
ratio that balances risks and returns at an acceptable level and also to maintain a sufficient funding base to enable the Group to 
meet its working capital and strategic investment needs. In making decisions to adjust its capital structure to achieve these 
aims, either through new share issues or the issue of debt, the Group considers not only its short-term position but also its 
long-term operational and strategic objectives.
There has been no other significant changes to the Group’s management objectives, policies and processes in the year.
Liquidity risk
Liquidity risk arises from the Group and Company’s management of working capital and the amount of funding committed to its 
exploration programme. It is the risk that the Group or Company will encounter difficulty in meeting its financial obligations as 
they fall due. The Group and Company’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities 
when they become due. To achieve this aim, it seeks to raise funding through equity finance, debt finance and farm-outs 
sufficient to meet the next phase of exploration and where relevant development expenditure. 
The Board receives cash flow projections on a periodic basis as well as information regarding cash balances. The Board will not 
commit to material expenditure in respect of its ongoing exploration programmes prior to being satisfied that sufficient funding 
is available to the Group to finance the planned programmes.
Trade and other payables are repayable on demand. The purchase consideration received in advance was settled during 2011. 
For maturity dates of current and non-current borrowings see Notes 24 and 26. For maturity dates of the warrants please see 
Note 29.
Interest rate risk
The majority of the Group’s borrowings are at variable rates of interest linked to LIBOR. As a result the Group is exposed  
to interest rate risk. An increase of LIBOR by 1% would have resulted in an increase in finance expense of US $ 150,000  
(2010: US $ 378,000).
There is no significant interest rate risk on the cash and cash equivalents as the Group does not have significant surplus cash 
balances to hold in interest bearing accounts.
Currency risk
The Group and Company’s policy is, where possible, to allow Group entities to settle liabilities denominated in their functional 
currency (primarily US Dollar and Kazakh Tenge) in that currency. Where Group or Company entities have liabilities denominated 
in a currency other than their functional currency (and have insufficient reserves of that currency to settle them) cash already 
denominated in that currency will, where possible, be transferred from elsewhere within the Group.
In order to monitor the continuing effectiveness of this policy, the Board receives a periodic forecast, analysed by the major 
currencies held by the Group and Company.
The Group and Company is primarily exposed to currency risk on purchases made from suppliers in Kazakhstan, as it is not 
possible for the Group or Company to transact in Kazakh Tenge outside of Kazakhstan. The finance team, along with its 
advisors, carefully monitors movements in the US Dollar / Kazakh Tenge rate and chooses the most beneficial times for 
transferring monies to its subsidiaries, whilst ensuring that they have sufficient funds to continue its operations. The currency  
risk relating to Tenge is insignificant. 66
Notes to the Financial Statements continued
Roxi Petroleum plc 
Annual Report and Accounts 2011
31 Related party transactions
The Company has no ultimate controlling party.
31.1 Acquisition of Eragon Petroleum Plc (now Eragon Petroleum Limited (“Eragon”)
The Eragon Acquisition in March 2008, details of which were set out in the Company’s 2008 annual report and accounts, 
comprised certain related party transactions because a director of the Company, Mr Oraziman, had a beneficial interest  
in 42.5% (currently 62.88%) of the issued capital of Baverstock GmbH (“Baverstock”).
As a result of the Eragon Acquisition, the Group entered into related party transactions which include but are not limited to  
the following transactions:
31.2 Loan agreements 
a) Loan from Mr Oraziman (as at the date of the Eragon Acquisition)
At the date of the Eragon Acquisition, in Galaz Energy BV there was a US $ 10 million loan borrowed from Mr Oraziman  
in July 2007, initially repayable together with interest accrued at LIBOR plus 3% in July 2009. As at 31 December 2010, the 
outstanding loan in amount of US $ 5 million remained payable from the Group, and has been classified within short-term 
borrowings (Note 24). During 2011, the Group signed a novation agreement with Mr Oraziman whereby Mr Oraziman agreed 
to release the Group from any liability under this loan agreement.
Under an agreement between the Company and Baverstock made on 30 January 2008, Baverstock agreed to take 
responsibility for the payments of the sums due under that loan and to fully and effectively discharge, indemnify and hold 
harmless the Company, Eragon Petroleum Limited, and as applicable Galaz Energy BV and BNG Energy BV from any 
obligation or liability arising from the terms of, or in connection with, of the Loan Agreement. Accordingly, an asset equal to 
the fair value of the liability under the Loan Agreement has been recognised on the acquisition of Eragon and wrote off 
during 2011 as per novation agreement discussed above (Note 19).
In August 2010, Galaz Energy BV has provided Baverstock with a loan facility of up to US $ 10 million at LIBOR +7%. The 
amounts borrowed under this loan agreement should be used exclusively for repayment of Mr Oraziman’s US $ 10 million 
loan received in July 2007. The facility is to be repaid by paying back future dividends receivable by Baverstock from Eragon. 
In December 2010 the first tranche of US $ 5 million under the facility agreement was transferred to Mr Oraziman directly by 
Galaz Energy BV to be repaid by Baverstock (Note 19). 
b) Other loans from Mr Oraziman 
In January 2010, Altius Energy, one of the shareholders of the Company, provided a loan of US $ 3 million to the Company. 
In order to repay the loan of US $ 3 million on time, the Group entered into a loan arrangement with Mr Oraziman on  
19 March 2010 for US $ 3 million which was lent on an interest free basis to Galaz and Company LLP and used to repay  
the Altius Energy loan. The loan was repaid to Mr Oraziman on 12 May 2010.
The Company had other loans outstanding as at 31 December 2010 with Mr Oraziman, details of which have been 
summarised in Note 24. 
c) Vertom 
During the year ended 31 December 2011, the Company entered into two loan facilities with Vertom International NV, details 
of which have been summarised in Note 26. A director of the Company Mr Oraziman is a director of and holds  
50% of the issued share capital of both Vertom International N.V. (“Vertom”) and Vertom International BV. 67
Business Review Year in Review Governance Financial Statements Company Information Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
d) Transactions with Canamens
As part of the joint venture entered into by the Group with Canamens in relation to BNG Ltd LLP, details of which are set  
out in Note 14, various loans were provided to BNG Ltd LLP and BNG BV that were settled to the Group as part of its 
reacquisition of BNG Ltd LLP (Note 14 and 26):
e) Loans in relation to LGI 
As described in Notes 15 and 26 Galaz and Company LLP and LG International entered into a Facility Agreement of  
US $ 34.4 million pursuant to the SPA entered into on 27 April 2010. LG International is a 40% shareholder in Galaz and 
Company LLP.
f) Raditie loan
During the year ended 31 December 2011, the Company entered into a loan facility with one of its shareholder Raditie NV,  
details of which have been summarised in Note 24. 
31.3 Key management remuneration
Key management comprises the Directors and details of their remuneration are set out in Note 6. 
In September 2008, the Directors and senior management agreed to deferral of their salaries and fees until such time that  
the restatement and the refund would not materially affect the Company’s ability to continue to comply with existing work 
programme commitments. This policy continued throughout 2010 and 2011.
As at 31 December 2011, the amount due to the Directors in respect of this deferral was approximately US $ 51,334  
(2010: US $ 60,000).
32 Events after the reporting period 
32.1 BNG SPA
On 19 March 2012, BNG Energy BV entered into a SPA with Bakmura LLP (the “Bakmura”), a wholly owned subsidiary of KNOC 
Kaz B.V., which in turn is wholly owned by KNOC for the sale of 35% of the interest in the BNG Contract Area for an initial cash 
consideration of US $ 5 million plus an obligation to fund a further US $ 25 million of the BNG work programme. In consideration 
for funding the work programme, Bakmura will be entitled to recoup its investment from future production from the license in 
priority to payments due to the Group.
Under this SPA the Group has given Bakmura an option to transfer its 32% interest in Galaz & Company LLP (the “Galaz Option”) 
to Bakmura. The Galaz Option is exercisable before 7 June 2013, if the oil exploration project in the BNG Contract Area turns out to 
be economically not viable and Bakmura has funded the current BNG work commitments in full. As part of the Galaz Option, 
Bakmura is also obliged to direct any unspent portion of the US $ 25 million BNG work programme funding to Galaz Energy BV.
Should Bakmura exercise the Galaz Option, Bakmura would be required to pay Galaz Energy BV an additional US $ 5 million. The 
Galaz Option can be exercised from 7 April 2013 and the consent of the Kazakh authorities would also be required.
Following the exercise of the Galaz Option Group’s interest in the BNG Contract Area license would be returned back to 58.41% 
while Group’s interest in the Galaz Contract Area is expected to decrease to 15.34%. 
32.2 Loan due to Vertom International NV
On 30 April 2012 the Group extended the term of the loan facility arrangement with Vertom International NV for a further two years 
to 30 April 2014 and at the same time increased the facility amount to US $ 7 million.
32.3 Assignment of debts by BNG Energy BV 
With effect from 1 January 2012, the Group undertook further cost reduction initiative as part of its drive to create greater efficiency 
within the Group’s loan finance structure and as a result BNG Energy BV transferred the majority of its debt to Roxi Petroleum Plc, 
the ultimate funding entity of the BNG Ltd LLP operations.
32.4 Financial aid from Mr Oraziman
During April 2012, Mr Oraziman has provided the Group with the short-term interest free financial aid for a total amount of  
US $ 0.5 million. 68
Roxi Petroleum plc 
Annual Report and Accounts 2011
Company Information
Directors
Mr C Carver 
(Non-Executive Chairman)
Mr D Wilkes 
(Chief Executive Officer)
Mr J Hyunsik 
(Chief Operating Officer)
Mr K Oraziman 
(Executive Director)
Mr E Limerick
(Non-Executive Director)
Company Secretary 
London Registrars plc
Registered Office and 
Business address 
4th Floor 
Haines House 
21 John Street 
London  
WC1N 2BP
Company Number 
5966431
Nominated Adviser
Strand Hanson Limited
26 Mount Row 
Mayfair 
London 
W1K 3SQ
Broker 
Renaissance Capital Limited
1 Angel Court 
Copthall Avenue 
London  
EC2R 7HJ
Solicitors  
McCarthy Tetrault
5 Old Bailey 
2nd floor 
London 
EC4M 7BA
Chadbourne & Parke LLP
43 Dostyk Avenue 
Almaty 050010 
Kazakhstan
Puxon Murray LLP
One Royal Exchange Avenue 
London 
EC3V 3LT
Auditors
BDO LLP
55 Baker Street 
London 
W1U 7EU
Share Register
Capita Registrars
Northern House 
Woodsome Park 
Fenay Bridge 
Huddersfield 
HD8 0LA
Public Relations
Buchanan Communications
107 Cheapside 
London 
EC2V 6DN
Principal Banker
Citibank Kazakhstan
Park Palace 
Building A 
2nd Floor 
41 Kazibek Bi Str. 
Almaty 050010  
Kazakhstan About Roxi
Roxi has interests in four oil assets in Kazakhstan. One has 
already commenced production and production from another two 
is expected later in the year.
Between now and the end of the year, a further two deep wells 
and four shallow wells are planned.
BNG 
2 
Operating wells
Beibars 
167km
2
 
Exploration acreage
Galaz 
4 
Operating wells
Uralsk
Atyrau
Kyzylorda
Shymkent
Taraz
Almaty
Karaganda
ASTANA
Pavalodar
Ust Kamenogorsk
Munaily 
1 
Operating well
 City
 Exploration
 Discovery
 Production
01 Highlights
02 Year in Review
02 Review of Operations
05 Glossary
06 Timeline
08 Business Review
08 Chairman’s Statement
10 Chief Executive’s Statement
14 Governance
14 Board of Directors
16 Directors’ Report and Business Review
20 Remuneration Committee Report
23 Report on Corporate Governance
24 Financial Statements
24 Independent Auditors’ Report
25 Consolidated Income Statement
26 Consolidated Statement of Comprehensive Income
27 Consolidated Statement of Changes in Equity
28 Parent Company Statement of Changes in Equity
29 Consolidated and Parent Company Statement  
of Financial Position
30 Consolidated and Parent Company  
Cashflow Statements
31 Notes to the Financial Statements
68 Company Information
Roxi Petroleum plc 
Annual Report and Accounts 2011 69
Business Review Year in Review Highlights
Roxi Petroleum plc 
Annual Report and Accounts 2011
Governance Company Information Financial Statements Transition to Production
Roxi Petroleum Plc
Annual Report and Accounts 2011
Annual Report and Accounts 2011
Registered Office and 
Business address 
4th Floor 
Haines House 
21 John Street 
London  
WC1N 2BP