Growth through partnership
Annual Report and Accounts 2010
Almaty office
7th Floor
152a Karasai Batyra Street
050026 Almaty
Kazakhstan
UK office
21 John Street 
London 
WC1N 2BP
Website
www.roxipetroleum.com
Roxi Pet RoL eum PLC Annual Report and Accounts 2010
RXP2635 - Cover AW02.indd   1 20/05/2011   17:09 Roxi Petroleum was admitted to trading on London’s AIM market 
on 22 May 2007 with the intent to acquire controlling interests in 
and develop oil and gas assets in Central Asia. Roxi’s strategy is 
to target oil discoveries and mature exploration acreage, which 
have reserves and production upside. 
01 Highlights
02 Year in Review
02 Operations
07 Glossary
08 Timeline
10 Business Review
10 Chairman’s Statement
12 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 
Cashﬂ ow Statements
31 Notes to the Financial Statements
69 Company Information
uralsk
Atyrau
Aktobe
Aktau
Kyzylorda
Shymkent
taraz
Almaty
Karaganda
AStANA
Pavalodar
ust Kamenogorsk
Galaz
Beibars
BNG
munaily
Contract Areas
City
Key
Contents
Company Information
Directors
Mr C Carver
(Non-Executive Chairman)
Mr D Wilkes 
(Chief Executive Ofﬁ cer)
Mr J Hyunsik 
(Chief Operating Ofﬁ cer)
Mr K Oraziman
(Executive Director)
Mr E Limerick 
(Non-Executive Director)
Company Secretary 
London Registrars plc
Registered Ofﬁ ce and 
Business Address 
4th Floor
Haines House
21 John Street
London 
WC1N 2BP
Company Number 
5966431
Nominated Adviser and Broker
Matrix Corporate Capital LLP
1 Vine Street
London, 
W1J 0AH
Solicitors 
McCarthy Tetrault
5 Old Bailey
2nd ﬂ oor
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
Huddersﬁ eld
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
Company Information
RXP2635 - Cover AW02.indd   2 20/05/2011   17:09 Roxi Petroleum plc Annual Report and Accounts 2010 01 Roxi Petroleum plc Annual Report and Accounts 2010
Highlights
Financial Highlights
Operational Highlights
2010
•	 US $ 57 	 m illi o n 	 BNG 	 farm- ou t 	 with 	 C aname ns
•	 US $ 20 	 m illi o n 	 adv an c e 	 r ec e i v ed 	 in 	 r esp ect 	 of 	 the 	 US $ 5 0 	 m illi o n 	 Gal a z 	 farm- ou t 	 with 	LGI
•	 US $13 	 m illi o n 	 p urch as e 	 cons id e ra t i on 	 r ec e i v ed 	 f rom 	LGI 	 fo r 	 40% 	 i n t e re st 	 in 	 Gal a z 	 LLP
•	 US $ 8 	 m illi o n 	shor t- t erm 	 con v e r t i bl e 	 lo an s 	 f rom 	 Alti u s 	 re pai d 	 with ou t 	 con v e r s i on
•	 US $ 8 	 m illi o n 	 lo an 	 f rom 	 Kuat 	 Ora zi man 	 re pai d
2011 to date
•	 C ompl e t i on	of	US $ 5 0	m illi o n	Gal a z	fa r m - ou t	with	LG I	
•	 C a nc e ll ati o n 	of	de a l 	with	C a na me ns 	r e s ulti ng	in	r e tu r n	of	3 5% 	ef fe c tiv e 	inte re st	in		
B NG	LLP	to	Rox i
•	 	 US $ 23 .6 	m illi o n	of	lo a n s	pr e v i o usly 	du e	to	C a na me ns	b e in g	n ov a te d	to	Rox i 	in		
e xcha ng e 	fo r	1.5% 	ro yalt y	p ay a b l e 	by	Rox i 	to	C a na me ns	ba s e d 	on	fu tur e 	p r o du c t io n	
f r om 	B NG	LLP
•	 N ew	lo a n	fa cilit y	r ec e iv ed	fo r	US $ 6 	m illi o n	f r om	Ver tom 	Int e r n a t io n a l 	N. V.
2010
•	 Roxi 	 en t ered 	 i nto 	 a 	 sale 	 a g reem en t 	 fo r 	 it s 	 30 % 	 i n t e re st 	 in 	 the 	 Ravninnoe 	 C on t ract 	 A r ea 	 fo r 	
U S $ 2.6 	 m illi o n
•	 8 95km
2
	 of 	 3D 	 s e ism ic 	 a c q u ired 	 on 	 BNG 	 (a 	 f u r the r 	 46% 	 of 	 C on t ract 	 A r ea )
•	 S ou th 	 Y el em e s 	 wel ls 		 8 05 	 and 	 80 6 	 su cce ss fu l l y 	 d rill ed 	
•	 22 6 	 b arrels 	 pe r 	 day 	 tested 	 f rom 	 the 	 Ju rass i c 	 re ser v o i r 	 in 	 S ou th 	 Y el e m es 	 well 	 8 05
•	 New 	 re ser v e s 	 and 	 p ro du ct io n 	 e stab l i s h ed 	 in 	 Lower 	 C reta c eou s 	 re ser v o i r 	 of 	 well 	 8 05
•	 Pi l o t 	 p ro du ct io n 	 l i c en se s 	 aw arded 	 fo r 	N. W. 	Kon ys 	 and 	 S ou th 	 Y el e m es
2011 to date
•	 E x t e ns i on 	of	li c en se	a r ea	of	Gal a z	g r a n te d
•	 NW	Konys 	( Gal a z ) 	li c en se	ex te n d e d 	of	2	ye a r s	to	M ay	2013
•	 N e a r in g	compl e t i on	of	i n t e r p r et ati o n	of	s e is m ic 	d at a	coll e c t e d 	at	the	B NG 	C on t r ac t	A r ea
Highlights
RXP2635 - AR10 Front AW11.indd   1 20/05/2011   16:50 Business Review
Roxi Petroleum plc Annual Report and Accounts 2010 02
Shares at the IPO (May 2007) 168,207,490
Shares in issue following the acquisition of Eragon Petroleum Plc (March 2008) 320,130,567
Other shares issued since IPO (but before 31/12/2009) 97,051,598
Total shares in issue at 31 December 2009 417,182,165
Shares issued during 2010 3,636,221
Total shares in issue at 31 December 2010 420,818,386
Shares issued since 31 December 2010 –
Total shares in issue at 26 April 2011 420,818,386
Roxi held interest in five SubSoil User Contracts in Western and Central Kazakhstan in 2010. The following table 
summarises the Company’s Interests at end of the year. 
During 2010 the Group sold its interest in Ravninnoe Oil LLP to Beimar Oil LLP which is expected to be completed in 2011.
Operating 	 entity Description Basin Inter est 	 at	
1/1/10
Inter est 	 at	
31/12/10
BNG Ltd LLP Exploration Contract Pre-Caspian 58.41% 23.41%
Galaz and Company LLP Exploration Contract Turgai 50.15% 57.82%
Ravninnoe Oil LLP Exploration and Production Contract Pre-Caspian 30% 30%
Munaily Kazakhstan LLP Exploration and Production Contract Pre-Caspian 58.41% 58.41%
Beibars Munai LLP Exploration Contract Mangyshlak 50% 50%
Shares in issue
Review of Operations
Operational Issues in 2010
Both of Roxi’s active subsidiary 
operating companies, Galaz and 
Company LLP and BNG Ltd LLP 
have experienced a difficult year from 
an operational perspective. There 
have been three extraordinary events 
which have adversely affected 
operational performance. 
In February 2010 the Ministry of 
Energy and Mineral Resources 
(MEMR) was disbanded by the 
Government of Kazakhstan and 
responsibilities for overseeing oil  
and gas exploration and production 
contracts was put in the hands of  
the newly formed Ministry for Oil  
and Gas (MOG) and the Ministry of 
Industry and New Technology 
(MINT). The hand-over of supervision 
was completed by October 2010, and 
shortly following this the Company 
received approval of the NW  
Konys, and South Yelemes Pilot 
Development Schemes from the 
MOG and MINT in December 2010.
In April 2010 Roxi announced that it 
had executed an Agreement to sell a 
40% interest and operational control in 
Galaz and Company LLP to LG 
International Corporation of Korea. 
However it was not until January 2011 
that Roxi had received all the 
necessary consents and waivers from 
the Government to complete the sale, 
and release the funds available to 
resume operations.
In June 2010 The Republic of 
Kazakhstan introduced new 
legislation covering the regulations 
governing oil and gas companies 
in Kazakhstan. These regulations  
had the most impact on areas of 
procurement procedures, Kazakh 
content, gas flaring permissions and 
environmental emissions permits. 
The effect was that all operating 
subsidiaries had to familiarize 
themselves with new procedures  
and recruit the necessary staff to 
comply with the new procurement 
and permitting regulations, together 
with Government officials. In some 
cases this meant having to 
retrospectively apply for permits 
which were not required under  
the previous legislation. 
The cumulative effect of these 
developments was to delay progress 
at both Galaz and BNG. However, 
these events are unlikely to be 
repeated in the near term and  
should not significantly impact  
future operations.
Operations
RXP2635 - AR10 Front AW11.indd   2 20/05/2011   16:50 03 Roxi Petroleum plc Annual Report and Accounts 2010
Business Review
Roxi acquired a 50.15% interest in 
Galaz and Company LLP in 2008. 
The block covers an area of 30 
square kilometers and lies directly 
north of the Konys fi eld operated by 
KAM. The block is towards the south 
edge of the Turgai basin, and has 
access to export by pipeline to China 
and by rail to Russia.
Contract Status
On 16 February 2011 Ministry of Oil 
and Gas extended exploration 
contract of Galaz and Company LLP 
for two more years up to 14 May 2013. 
Exploration
In February 2010 Galaz completed 
well NK22 on the SW corner of the 
block, to test the “North Konys” 
structure on eastern side of the 
Karatau fault system to a depth of 
2800m. Hydrocarbons were 
interpreted from logs in the Arskum 
Formation and a hydrocarbon 
gradient was measured in the 
formation. As a result of a failed 
cement job in the original hole, an 
offset well (NK20) was spudded by 
the contractor in December 2010, 
and drilled to a total depth of 1,550m 
with the objective of re-testing the 
Arskum Sands. The well failed to fi nd 
hydrocarbons in the Arskum but 
cored thin (non-commercial) oil 
bearing sands in the Upper Jurassic.
Well NK22 and subsequently NK20 
confi rm the migration and entrapment 
of hydrocarbons on the North Konys 
Structure, consequently in August, 
Galaz applied for and has been 
subsequently awarded an extension 
of the Contract Area to approximately 
180 square kilometers to the 
southeast of the block.
NW Konys Field Pilot 
Production
The block contains the NW Konys 
satellite structure which was 
successfully appraised in 2008 and 
2009; following which the Company 
submitted an application for Pilot 
Production in November 2009. 
The Company received confi rmation 
from the Ministry that Pilot Production 
for NW Konys was sanctioned in late 
December 2010. However, one 
impact of the new oil and gas 
legislation is to delay the start of Pilot 
production until completion of 
Facilities Design Project, EIA and 
issuance of Emissions Permits, from 
the Environmental Agency, expected 
in the second half of 2011.
In June 2010, a reserves audit was 
announced by Roxi undertaken by 
McDaniel and Associates Inc. Gross 
Proven plus Probable (2P) reserves of 
7.5mmbbls were estimated for the NW 
Konys fi eld. This was the fi rst reserves 
update since the appraisal drilling in 
2009, and will be updated following 
further drilling likely to be in 2012. 
Forward Programme
Roxi’s main priority in 2010 was to 
secure fi nancing for the development 
of NW Konys, which was successfully 
achieved by the sale of 40% interest 
to LGI by Roxi and partners. Over the 
next twelve months Galaz is planning 
the appraisal and production drilling 
campaign on the fi eld, together with 
facilities and infrastructure, which will 
be of great signifi cance to Roxi, 
providing the Company’s fi rst 
consistent revenue stream, and 
further reserves growth.
Notifi cation about contract two year 
extension period should result in 
sanction and amendment to the 
Sub-Soil User Contract (SSUC) by 
June 2011, enabling the start of 
production from NW Konys as early 
as October 2011.
Galaz Contract Area, Turgai Basin, Central Kazakhstan (Roxi interest 34.22%)
O p e r a t i n g	we l l s
7
R o x i	I n t e r e s t
34.22%
LGI interest 40%
A r ea :
180km
2
G r o s s	R e s e r v e s :
•	 proved: 2,442 MBBI
•	 proved & probable: 7,506 MBBI
•	 proved & probable & possible: 
10,905 MBBI
Galaz Fact File
RXP2635 - AR10 Front AW11.indd   3 20/05/2011   16:50 Business Review
Roxi Petroleum plc Annual Report and Accounts 2010 04
Roxi acquired a 58.41% interest in 
BNG Ltd LLP in 2008, and in 2009 
entered into a farm-out agreement 
with Canamens to fund the work 
programme for the initial exploration 
period. The block covers an area of 
1,561 square kilometers and lies in the 
South Emba Sub-basin 40 kilometers 
to the southeast of Tengiz fi eld. 
Contract Status
The initial period of the Sub-Soil User 
Contract (SSUC) terminates in May 
2011. In 2010 the operating 
Company, BNG Ltd LLP, applied for 
the fi rst two year extension of the 
SSUC, which should, after review, be 
granted by the Ministry of Oil and 
Gas.
South Yelemes Pilot Production
The primary focus of operations in 
2010 has been to appraise the South 
Yelemes discovery in the north of the 
block. The Pilot Production Project 
was submitted to the Ministry for 
approval in 2009, however, due to 
re-structuring of the Ministry the 
approval was delayed until November 
2010, with fi nal project, environmental 
and procurement approvals expected 
in the second half of 2011. 
Well NSA-54 was re-entered and put 
onto three month test in the fi rst half 
of the year, producing a cumulative 
4,130 barrels of oil. Later in the year 
appraisal wells 805 and 806 
(classifi ed as exploration wells) were 
drilled to evaluate the Jurassic 
potential in the fi eld, with the 
objective of booking SPE initial 
reserves for the fi eld in 2011. The 
wells yielded mixed results, delineating 
limited potential in the Jurassic 
reservoirs but striking new pay in the 
lowermost Cretaceous. Well 806 
encountered an Oil-Water Contact in 
the Jurassic, but well 805 tested dry 
oil at 226 barrels of oil per day from 
the Jurassic and Cretaceous tests 
indicate that this new reservoir should 
be capable of producing at 
commercial rates on pump. The 
Company is currently updating 
reserves and evaluating how to bring 
the Cretaceous into production under 
the existing development scheme, 
and thereby raise Pilot Production 
from South Yelemes Field at the 
earliest opportunity.
During the testing phase oil is being 
sold at the wellhead at domestic 
prices, but after stable production 
is established the Company will look 
for export options for the sales, which 
will result in a marked increase in 
BNG revenue. 
Exploration
BNG has continued the strategy of 
3D seismic acquisition across the 
block in 2010. In August 2010 BNG 
completed a further 800 square 
kilometer acquisition programme, 
which brings the total 3D coverage 
on BNG block to 1,376 square 
kilometers. The data was processed 
in Almaty and merged in with the 
data acquired in 2009. 
BNG continues to gather and assimilate 
historical and surrounding analogue 
data to fully evaluate the exploration 
potential of the block, including the 
highly prospective Carboniferous and 
Lower Permian formations, and the 
Triassic, Jurassic and Cretaceous 
reservoirs, all of which produce in the 
areas surrounding the block (the initial 
fi ndings of the analysis of the 3D 
seismic information gathered is 
expected to be available during the 
second quarter of 2011).
A drilling contract was signed at the 
end of 2009 with a local drilling 
contractor to drill up to 7 wells on BNG. 
After drilling two South Yelemes 
appraisal wells a third (exploration) well 
135 was spudded at the end of the 
year on the North Yelemes prospect. 
This small structure was chosen as a 
potential satellite development to South 
Yelemes, with the objective of early 
production. The well was plugged and 
abandoned with uncommercial oil 
shows in fi rst quarter of 2011. 
Consequently, and as a result of the 
initial results of the 3D seismic BNG  
has suspended the drilling programme 
on the BNG block to focus on the 
exploration potential currently being 
interpreted on the 3D seismic.
Forward Programme
By mid 2011 BNG should receive the 
Ministry of Oil and Gas confi rmation of 
the extension of the SSUC, after 
which the Company plans to prepare 
for a deep well to test the Paleozoic 
potential on BNG block. In the 
meantime, the Company will focus on 
bring South Yelemes fi eld into pilot 
production. If successful, the 
development of the Lower Cretaceous 
reservoir in South Yelemes would have 
a signifi cant impact on BNG and Roxi. 
Roxi should complete SPE reserves 
and resources update in 2011. 
BNG Contract Area, South Pre-Caspian Basin, Western Kazakhstan (Roxi interest 23.41%)
O p e r a t i n g	we l l s
4
	
R o x i	I n t e r e s t
23.41%
A r ea :
1,561km
2
S ei s m i c	C over a ge :
1,376km
2
(88%)
BNG Fact File
Operations continued
RXP2635 - AR10 Front AW11.indd   4 20/05/2011   16:50 Business Review
05 Roxi Petroleum plc Annual Report and Accounts 2010
Roxi acquired a 50% interest in 
Ravninnoe Oil LLP in 2007, and 
in 2008 entered into a farm-out 
agreement with Canamens to 
fund the fi rst well the Ravninnoe 
structure. The block covers an area 
of 121 square kilometers and lies in 
the South Emba Sub-basin 60 
kilometers to the northeast of the 
BNG Contract Area. 
In April 2010, newly drilled well 20 
was tested at rates of 240 barrels of 
oil per day from the Carboniferous 
dolomite reservoir. After acidisation, 
little or immaterial increase in 
production was observed. The rate
 of 500 barrels of oil per day was 
envisaged as being the commercial 
cutoff for development of Ravninnoe, 
due to the high costs of drilling this 
deep high pressure reservoir. Despite 
the potential to apply horizontal 
drilling and fracturing, in October 
2010 in order to conserve funding 
for BNG Roxi (together with our 
Ravinnoe farm-in partner Canamens) 
announced that it had agreed to sell 
its entire interest in Ravninnoe Oil
 LLP to Beimar Oil LLP.
Roxi acquired a 50% interest in Beibars 
Munai LLP in 2007 , which operates the 
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 awarded as a 
military exercise area, and the Kazakh 
forces notifi ed Beibars Munai LLP that 
it would not be permitted access to the 
area. Agreement was reached with the 
military to fi nish the seismic acquisition, 
and since that time there has been no 
operational activity.
The Company plans to resolve the 
access issue with the army and then 
seek farm-in partners to explore 
Beibars contract area.
Roxi acquired a 58.41% interest in 
Munaily Kazakhstan LLP in 2008, 
which operates the Munaily fi eld in 
the Atyrau oblast. That year two 
wells were drilled on the fi eld and one 
well was re-entered. The Company 
estimated that approximately 1.1 
million barrels of by-passed reserves 
were recoverable from the old fi eld. 
Despite the success of these 
operations the Board of Roxi 
decided that the scale of the project 
was too small, and entered into an 
Agreement to sell its entire interest to 
BTC, a local drilling Company in 
December 2008. The sale of Munaily 
has not yet completed and Roxi has 
not participated in any operations on 
the block since 2008. Further details 
of the current position is set out in 
the Chief Executive’s report.
Ravninnoe Contract Area, South Pre-Caspian Basin, Western Kazakhstan (Roxi interest 30%)
Beibars Contract Area, Mangishlak Basin, Western Kazakhstan (Roxi interest 50%)
Munaily Contract Area, Pre-Caspian Basin, Western Kazakhstan (Roxi interest 58.41%)
RXP2635 - AR10 Front AW11.indd   5 20/05/2011   16:50 Business Review
Roxi Petroleum plc Annual Report and Accounts 2010 06
Qualified Person 
Duncan McDougall, Technical 
Consultant of Roxi Petroleum and 
a Fellow in the Geological Society, 
London, 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.
GOST Recoverable Oil Reserves
Reserves and Resources Summary Table
(million tonnes)
Contract	Ar ea Pr operty	Gr oss Roxi	Net Inter est
Ravninnoe C1 1.4 0.4 30.00%
C2 0.8 0.2 30.00%
C3
Galaz C1 1.0 0.3 34.22%
C2 1.0 0.3 34.22%
C3
BNG C1 1.3 0.3 23.41%
C2 4.5 1.1 23.41%
C3 50.2 11.7 23.41%
Total C1 3.7 1.0
C2 6.3 1.6
C3 50.2 11.7
(million of barrels)
Contract	Ar ea Pr operty	Gr oss Roxi	Net Inter est
Ravninnoe C1 9.9 3.0 30.00%
C2 5.6 1.7 30.00%
C3
Galaz C1 7.2 2.5 34.22%
C2 7.4 2.5 34.22%
C3
BNG C1 10.1 2.4 23.41%
C2 32.4 7.6 23.41%
C3 360.1 84.3 23.41%
Total C1 27.2 7.9
C2 45.4 11.8
C3 360.1 84.3
(million of barrels)
Pr operty	Gr oss	 Roxi	Net Inter est
Ravninnoe Probable 1.3 0.4 30.00%
Possible 2.4 0.7 30.00%
Contingent 
Resources (best) 2.6 0.8 30.00%
Galaz Proven 2.4 0.8 34.22%
Probable 5.1 1.7 34.22%
Possible 3.4 1.2 34.22%
BNG Not Evaluated Yet
Total Proven 2.4 0.8
Probable 6.4 2.1
Possible 5.8 1.9
Contingent
 Resources (best) 2.6 0.8
Operations continued
Total reserves  
for all assets:
C1:
8 million barrels
C1 + C2: 
20 million barrels
C1 + C2 + C3: 
104 million barrels
All reported using GOST 
standards common in Russia  
and the CIS region.
RXP2635 - AR10 Front AW11.indd   6 20/05/2011   16:50 Business Review
07 Roxi Petroleum plc Annual Report and Accounts 2010
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 deterministic 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.
Category C1 
C1 reserves are computed on the 
basis of results of geological 
exploration work and production 
drilling and must have been studied 
in sufficient detail to yield data from 
which to draw up either a trial 
industrial development project in the 
case of a natural gas field or a 
technological development scheme 
in the case of an oil field. 
Category C2 
C2 reserves are preliminary 
estimated reserves of a deposit 
calculated on the basis of geological 
and geophysical research of 
unexplored sections of deposits 
adjoining sections of a field 
containing reserves of higher 
categories and of untested deposits 
of explored fields. The shape, size, 
structure, level, reservoir types, 
content and characteristics of the 
hydrocarbon deposit are determined 
in general terms based on the results 
of the geological and geophysical 
exploration and information on the 
more fully explored portions of a 
deposit. Category C2 reserves are 
used to determine the development 
potential of a field and to plan 
geological, exploration and 
production activities. 
Category C3 
C3 resources are prospective reserves 
prepared for the drilling of (i) traps 
within the oil-and-gas bearing area, 
delineated by geological and 
geophysical exploration methods 
tested for such area and (ii) the 
formation of explored fields which have 
not yet been exposed by drilling. The 
form, size and stratification conditions 
of the assumed deposit are estimated 
from the results of geological and 
geophysical research. The thickness, 
reservoir characteristics of the 
formations, the composition and the 
characteristics of hydrocarbons are 
assumed to be analogous to those for 
explored fields. Category C3 resources 
are used in the planning of prospecting 
and exploration work in areas known  
to contain other reserve bearing fields. 
GOST standards
GOST standards are administered  
by the Euro-Asian Council for 
Standardization, Metrology and 
Certification (EASC), a standards 
organization chartered by the 
Commonwealth of Independent States.
At present, the collection of GOST 
standards includes over 20,000 titles 
used extensively in conformity 
assessment activities in 12 
countries. Serving as the regulatory 
basis for government and private-
sector certification programmes 
throughout the Commonwealth of 
Independent States, the GOST 
standards cover energy, oil and gas, 
environmental protection, 
construction, transportation, 
telecommunications, mining, food 
processing, and other industries.
Glossary
SPE – The Society of Petroleum Engineers
GOST Standard Reserves
RXP2635 - AR10 Front AW11.indd   7 20/05/2011   16:50 Business Review
Roxi Petroleum plc Annual Report and Accounts 2010 08
“ 	 Roxi 	ha s 	made	pr og r e s s	acr os s 	it s 	por t f ol i o 	as	we 	loo k	
to	d el i v er	our	s tr at e g y 	of	se c ur in g 	e a r ly 	pr oduc t ion 	a nd 	
proving 	up	r e ser v e s 	on	our	cor e	a s se ts ” 	
D a vid 	W ilk e s ,	C hi ef 	E x e c u tiv e	O f fic e r
2010
January
•	 David Wilkes appointed  
as Chief Executive Officer
•	 Ravninnoe Well 20 drilled 
to 3455m, encountering 
hydrocarbons 
•	 Ravninnoe Well 20 TD’s 
February
•	 Edmund Limerick appointed 
as Non-Executive Director 
•	 Hyunsik Jang appointed as 
Chief Operating Officer
•	 Presentation at Oil Barrel 
conference in London
•	 Second discovery on Galaz 
Contract Area NK 22
April
•	 Sale of Galaz 40%  
interest announced
•	 Spud Well 805 at  
Yelemes field
•	 BNG tested Well # 54, 
which yield 200 b.o.p.d
•	 BNG seismic acquisition 
started
•	 Ravninnoe Well 20 tested 
240 b.o.p.d
May
•	 North Yelemes seismic 
completed
•	 Roxi repaid Altius loan  
of US$ 5 million
June
•	 Annual General Meeting
•	 McDaniel SPE Galaz 
reserves determined
•	 Well 805 drilled on  
Yelemes field
March
•	 Canamens exercised BNG 
farm-out option (Stage 2) 
•	 Roxi repaid the  
US$3 million Altius 
convertible loan 
August
•	 BNG Well 805  
completed drilling
September
•	 Announce interim half  
year results
•	 BNG Well 805 finished 
testing of two 
hydrocarbon zones
July
•	 Spud Well 806 at  
Yelemes field
•	 BNG 3D seismic acquisition 
program completed
•	 Ravninnoe Well 20 continued 
production testing
November
•	 One of two 
testing intervals 
completed on 
BNG Well 806
October
•	 Roxi sold 30% interest  
in the Ravninnoe  
Contract area
December
•	 Spud Galaz Well NK20
•	 Spud well 135 on the 
North Yelemes
Timeline
RXP2635 - AR10 Front AW11.indd   8 20/05/2011   16:50 Business Review
09 Roxi Petroleum plc Annual Report and Accounts 2010
2011
January
•	 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
April
•	 Water injection 
permit for Galaz
July
•	 Confirmation of extension  
to SSUC for BNG
•	 Emissions Permits  
granted for Pilot 
Production on NW Konys
August
•	 Start pilot production  
at NW Konys
September
•	 Project Facility Design for 
South Yelemes approved
•	 Announce interim  
half year results
November
•	 Spud 2
nd
 appraisal well  
on NW Konys field
•	 Emissions Permits granted 
for Pilot Production on 
South Yelemes
December
•	 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
May
•	 Resource estimate for BNG 
contractual area by Gaffney  
Cline & Associates
June
•	 Project Facility Design for 
South Yelemes finished 
and sent to authority
•	 Seek additional financing 
arrangements for BNG
•	 Annual General Meeting
February
•	 BNG Well 135 on North 
Yelemes – dry hole
•	 Confirmation of two 
year extension to SSUC 
for NW Konys received
March
•	 Canamens announced 
reduction in funding 
commitment
•	 90 day test production 
from BNG Well 805
October
•	 Spud 1
st
 appraisal well  
on NW Konys field
•	 Water injection well on  
NW Konys
RXP2635 - AR10 Front AW11.indd   9 20/05/2011   16:50 For 	 the 	year 	 e n ded 	31 	 D ec em b er 	2010 	 	
and 	 the 	 fir st 	f ew 	 mo nth s 	 of 	2011 , 	 I 	ha ve 	 	
to 	 repo r t 	 b ot h 	 s ome 	 stro ng 	 pr og r e ss 	 	
and 	 s ome 	 s et b ack s .
Galaz
On the positive side, we recently 
completed the much anticipated 
farm-out of part of our interest at 
Galaz to LGI, the Korean multi-
national corporation. The funds 
released both to develop the Galaz 
asset and for Roxi day to day use 
were well timed.
Development work is expected to 
commence in earnest at Galaz in 
the second quarter of 2011 
following the receipt of a final 
clearance under the new Kazakh 
environmental law. We believe that 
this should allow production to 
commence by October 2011.
BNG Seismic evaluation
Also on the positive side we have 
almost completed the interpretation of 
the seismic data collected at the BNG 
Contract Area (“BNG”) over the past 
couple of years. This is being 
evaluated by our external consultants, 
Gaffney, Cline and Associates Ltd, the 
results of which should be announced 
during the second quarter 2011.
Drilling results at BNG
Our drilling activity on South Yelemes 
has resulted in some positive oil 
shows from the first three wells drilled 
there in 2010, for which we received 
notification of our pilot production 
license in December 2010. 
On the negative side in February 
2011 on the North Yelemes, one of 
our smaller prospects on BNG, we 
announced that, based on wire 
logging, there were no zones of 
commercial interest at Well 135 and 
that it would be plugged and 
abandoned. This was clearly a 
disappointment having drilled to a 
depth of almost 3,000 metres but the 
exercise provided a considerable 
amount of information which we 
believe will assist in our further 
development of this area.
Canamens
In March 2011 we announced that 
Canamens BNG BV (“Canamens”), 
our farm-out partner at BNG and 
before that at Ravninnoe, had 
informed us that they would not be 
making the final payments due 
under the farm-out arrangements 
approved by Roxi shareholders in 
November 2009. These amount to 
some $12 million. 
We had been aware for some  
time that the principal shareholders 
 in Canamens were conducting a 
strategic review of Canamen’s 
investments and future commitments. 
While we thought that Canamens’s 
shareholders may not wish 
Canamens to fund the development 
of the BNG asset following the end of 
the arrangements entered into in 
November 2009, we were surprised 
Chairman’s Statement
Year in Review
Roxi Petroleum plc Annual Report and Accounts 2010 10
RXP2635 - AR10 Front AW11.indd   10 20/05/2011   16:50 they have decided not to pay the 
amounts set out in the agreement 
signed at that time.
Under the terms of the farm-out 
agreement the failure by Canamens 
to make these payments results in 
the forfeiture of 6.23 percent of BNG 
LLP, the entity owning the rights to 
BNG.  Accordingly Roxi’s interest in 
BNG LLP would have increased from 
23.41 per cent to 29.64 percent and 
Canamens would have fallen from 35 
percent to 28.77 percent.  
In the short-term Canamens’ decision 
not to advance the funds for the 
development of BNG has had little 
operational impact as much of the 
seismic acquisition and processing 
work has been completed and as 
mentioned above the publication of 
an audited portfolio of BNG 
prospectivity is expected in the 
second quarter of 2011.
On 10 May 2011, we announced that 
we had agreed with Canamens to 
cancel the original BNG farm-out. 
Accordingly Roxi will own 58.41 
percent at the BNG Contract Area. 
Additionally Canamens have agreed 
to novate its loans from BNG Ltd LLP 
to Roxi, other than US$ 2.5 million 
which will be repaid by BNG Ltd LLP, 
in return for Roxi granting a 1.5 
percent royalty on its gross value of 
future production from the BNG 
Contract Area. I am delighted to 
report that as well as regaining 
majority control of this asset Roxi has 
resumed operational and financial 
control of all development operations 
at the BNG Contract Area.
The significance of this for Roxi, is 
that BNG Energy BV can now seek a 
new farm out partner by farming out 
an interest in BNG LLP in exchange 
for the new partner providing 
additional funding into the operating 
asset. This will allow for the BNG to 
explore some of the deeper horizons 
identified from recently performed 3D 
seismic work carried out across the 
license area. Roxi will also now be 
entitled to US$23.6 million of loans 
that were previously due to 
Canamens, representing their share 
of historical funding provided to the 
BNG asset, which have now been 
novated to Roxi as part of the deal.
Management
As previously reported during the year 
under review we strengthened the 
Board by the appointment in February 
2010 of Edmund Limerick, as a non 
Executive Director and in June 2010  
of Hyunsik Jang, as Chief Operating 
Officer. I am pleased to report that 
they are making a strong contribution 
to the running of the Company and 
that in David Wilkes we have a very 
competent Chief Executive well 
equipped to lead us through some 
potentially challenging times.
Kazakhstan
During the period under review there 
have been important changes to both 
the subsoil and taxation legislation. In 
addition there have been changes in 
the senior personnel at some of the 
regulatory authorities with which we 
deal. Inevitably, such a scale of 
change has resulted in delays in 
receiving regulatory approvals and 
consequently, our operations.
What has been pleasing is the way in 
which our team has responded to 
these challenges. I believe this is a 
direct result of our policy of employing 
principally Kazakh nationals and of 
working with our Kazakh partners to 
develop our assets. We continue to 
maintain good relations with both our 
local partners and the local 
authorities; this remains core 
strength of our business.
Employees
Once again I would like to thank all  
of our employees for their continued 
hard work. It is never easy working 
for a Company such as ours in 
difficult times. The progress that 
has been made is principally the 
result of their sustained efforts in 
uncertain times.
Outlook
Now we have concluded an 
acceptable exit from the current 
arrangements with Canamens on 
BNG, we look forward to developing 
our principal assets to move both into 
production later in 2011.
Clive Carver
Chairman 
19 May 2011 
Year in Review
11 Roxi Petroleum plc Annual Report and Accounts 2010
RXP2635 - AR10 Front AW11.indd   11 20/05/2011   16:50 Chief Executive’s Statement
I	am	ve r y 	p le a s e d	to	be	a b le	to	
p r e sen t 	my 	s e cond 	r epor t	as		
C hief	E xe c u tive	O f ficer.
Update
In summary, I would say that we have 
consolidated our position during 2010 
and have made steady progress in 
moving the development of our core 
assets forward. At the same time we 
have de-risked our portfolio by 
moving away from those non-core 
assets that presented higher risked 
returns at higher costs than we could 
realistically afford.
We faced some challenges with delays 
in obtaining the necessary licenses to 
move our core asset’s operations 
forward during the year, particularly for 
Galaz, due to the re-organization at the 
Government’s Ministries that occurred 
part way through the year, which added 
to the normal timeframe for obtaining 
the necessary approvals to progress 
our projects.  We also more recently 
were informed by our partner 
Canamens that they decided not to 
provide all of the funding under their 
agreement to acquire an interest in 
BNG LLP . This presents us with some 
short term challenges in meeting our 
immediate cash obligations which will 
be met through an additional financing 
arrangement that we have now agreed 
with Vertom International NV via a new 
loan facility of US$6 million. 
As well as the new financing 
arrangement that we have put in place 
with Vertom, we have also recently 
agreed with Canamens to cancel the 
sale of the 35% interest in BNG. This 
was considered to be in the best 
interests of both parties and will allow 
Roxi to seek alternate financing 
solutions for the continued 
development of the BNG asset. 
Canamens also agreed to novate their 
loans back to Roxi Plc in return for 
Roxi agreeing to pay to Canamens a 
form of royalty payment based on 
future production achieved from BNG 
LLP. All of these arrangements will 
ensure that we are able to achieve our 
aim to further develop the potential 
from the BNG asset and at the same 
time clear the way for a new financing 
solution to be put in place for BNG.
We also recently received final 
approvals for the extension of the NW 
Konys license area as well as the 
exploration license itself has been 
approved and extended for a further 
two years as well as the pilot 
production license being awarded to 
us, so we are well placed together 
with our new farm-out partner LGI, to 
move this asset to production later 
this year. We are in a similar position 
on BNG with our pilot production 
license on South Yelemes recently 
being awarded to us. Our plan is to 
move both assets to pilot production, 
as soon as the emissions licenses 
have been granted to us by the 
Ministry of Oil and Gas.
We are still waiting for final approval 
and completion for the sale of our 
interest in Ravninnoe and expect that 
this will complete during 2011. In 
respect of the sale of Munaily, we are 
currently re-negotiating the sale to 
BTC which when first negotiated, 
wanted to acquire 59% of Munaily. 
We are now looking to sell our entire 
interest in this asset and are 
re-negotiating our terms with the 
buyer. The Group’s remaining focus 
will be on Beibars where we plan to 
farm-out part of our interest to an 
investor willing to fund the drilling of 
exploratory wells that will enable us to 
assess the potential of this asset.
We continue to maintain our focus on 
cost reduction initiatives and are 
currently reviewing the possible 
restructuring of our holding 
companies structure in 2011. This will 
enable a much more efficient and 
transparent legal structure going 
forward and should enable further 
cost reductions to be achieved in 
addition to those put in place in 2010.
Strategy
Our strategy in the near-term remains 
committed to finding new farm-out 
partners for BNG and Beibars as well 
as achieving production from BNG 
and Galaz, which are now close to 
achieving pilot production, with oil 
discoveries having already been 
made on both assets and with the 
majority of the licensing and 
associated permits now in place to 
start pilot production in the latter part 
of 2011. This will allow us to develop 
Galaz and move onto exploration of 
I 	 w oul d 	 s ay 	 th at 	 we 	 h a ve 	 c ons ol ida te d 	 ou r 	
p os i ti o n 	 d u r in g 	2010 	 a nd 	 h a ve 	 m a de 	 s te a d y 	
pr og r e s s 	 in 	 mo v i ng 	 the 	 dev e lo p m e n t 	 of 	 ou r 	
c or e 	 a s se ts 	 f o r wa r d .
Year in Review
Roxi Petroleum plc Annual Report and Accounts 2010 12
RXP2635 - AR10 Front AW11.indd   12 20/05/2011   16:50 deeper horizons in BNG where  
we believe much greater potential 
can be exploited based on the 
results from our recent 3D seismic 
work completed.
As we move to pilot production from 
our two core assets we will also look 
for further acquisitions into producing 
assets in Kazakhstan.
Financing Arrangements
The completion of the previously 
announced LG deal in January 2011 
provided not only the funding 
necessary for the further 
development of the NW Konys field 
but also funds that helped Roxi 
repay some of its short term loans 
as well as much needed additional 
short-term financing for Roxi’s fixed 
costs going forward. 
In terms of the financing of BNG, 
now that we have cancelled the deal 
with Canamens this will allow us to 
find an alternative financing solution 
for the BNG project. This will remain 
a priority in the near term to enable 
us to fund the exploration and 
development of the BNG operations 
going forward.
Financial Highlights
The Consolidated Income Statement 
on page 25 still reflects the fact that we 
have historically been an exploration 
company with no commercial 
production to date. The results for the 
year were impacted by the impairment 
of our Ravninnoe asset after our 
decision to sell our Ravninnoe interest. 
Additionally the partial disposal of our 
interest in BNG to Canamens released 
some of the unrealized currency 
translation losses that had been 
capitalized prior to the devaluation of 
the national currency. 
The advances received from the LGI 
deal which completed in January 
2011 enabled us to repay some of 
our loans to shareholders that fell 
due during the course of 2010. This 
was important to protect shareholder 
value and prevent the possibility of 
further dilution of the shareholder 
interests in Roxi. At the same time 
the proceeds from the disposal of 
the 40% interest in Galaz and 
Company LLP, provided useful cash 
injection into the Group that will 
sustain us whilst we prepare for pilot 
production from our two core assets 
in the latter part of 2011. These 
factors, together with the cost 
reduction initiatives put in place 
during 2010, will mean that we are in 
a much better position to finance our 
transition to production and 
cashflows than in the past and have 
managed to convert some of our 
historical short term financing 
arrangements to longer  
term debt with our partners that will  
be repaid out of initial production  
from our assets.
Infrastructure
Roxi’s activities are run out of our 
principal office in Almaty. 
Staffing
The Roxi Group now employs in total 
86 staff, all of whom are based in 
Kazakhstan. We have 62 in Almaty 
and 24 in the regional and field 
offices. Of these employees 9 are 
technical staff, 17 are financial staff, 
14 are operational staff and 46 fulfil 
other activities. 79 of our staff are 
Kazakh nationals.
Changes to the Board and executive 
management team have been 
summarised in the Chairman’s report. 
Social Programmes
Under Kazakh regulations part of our 
obligations under various work 
programmes on the assets in which 
we have interest are paid in the form 
of contributions to local social 
programmes. In 2010 Roxi made 
significant contributions to: 
•	 Kyzylorda region social fund  
$211,500 (Galaz); and
•	 Mangistau regional social 
obligation fund $625,000 (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 surfaced at any of the properties 
acquired to date. Compliance with 
environmental regulatory bodies is 
being managed from both the 
Kyzyl-Orda and Almaty offices.
Kazakhstan
Kazakhstan continues to develop  
and is constantly improving its legal 
framework and tax legislation to 
achieve the right balance between  
the need to encourage new 
investment into Kazakhstan and 
existing companies who operate 
business in Kazakhstan and the 
State. Operating in Kazakhstan in 
such times of evolution can from time 
to time present challenges. 
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, in the 
medium-term, some of the difficulties 
being encountered by other less 
integrated international companies 
 as an opportunity for growth.
Outlook
We look forward with confidence as 
both of our core assets move closer 
to production in 2011, bringing 
much more stability to Roxi’s 
operations going forward. We will 
continue to be challenged with 
finding the right financing solutions 
for the exploration of some of the 
deeper prospects on BNG, however, 
we believe that with this in place, 
together with the ongoing 
development of the NW Konys field, 
the transformation process for Roxi 
will be complete, moving us from an 
exploration Company to an oil 
producer and ultimately realizing 
value for our shareholders. 
David Wilkes
Chief Executive Officer 
19 May 2011 
Year in Review
13 Roxi Petroleum plc Annual Report and Accounts 2010
RXP2635 - AR10 Front AW11.indd   13 20/05/2011   16:50 Clive Carver 
( ag e d	50 )		
N o n - E x e c u tiv e 	Ch a i r ma n
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. He is head of 
corporate finance and a founding 
shareholder at FinnCap, a London 
based financial advisor and broker.
David Wilkes 
( ag e d 	48 ) 		
D i r e c to r	a nd		
C hief 	E x e c u tiv e 	O f fic e r
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 the three years, as well as holding 
a Board position with the American 
Chamber of Commerce in 
Kazakhstan for six years.
Kuat Oraziman
( ag e d 	48 ) 	
E x e c u tiv e 	D i r e c to r
Kuat 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.
Goverannce
Roxi Petroleum plc Annual Report and Accounts 2010 14
Board of Directors
RXP2635 - AR10 Front AW11.indd   14 20/05/2011   16:50 Edmund Limerick
( ag e d	48 )		
N o n - E x e c u tiv e	D i r e c to r 	
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.
Hyunsik Jang 
(aged	54)	
C hief 	O p e r ati ng 	O f fic e r
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.
Governance
15 Roxi Petroleum plc Annual Report and Accounts 2010
RXP2635 - AR10 Front AW11.indd   15 20/05/2011   16:50 Goverannce
16 Roxi Petroleum plc Annual Report and Accounts 2010
The Directors present their fourth annual report on the 
operations of the Company and the Group, together  
with the audited financial statements for the year ended  
31 December 2010. 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. 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 
within three to five years. At that time, the Company had 
agreements to buy three principal assets, Ravninnoe, 
Beibars, and North Karamandybas.
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 2009, 2010 and 2011 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. The Group also progressed 
the de-risking of the portfolio of assets by progressing the 
sale of its interests in Ravninnoe Oil LLP and Munaily 
Kazakhstan LLP.
Strategy and future developments
The Group’s 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 our existing 
portfolio of assets against the backdrop of an 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, securing finance to  
develop its BNG asset and building the infrastructure 
to maximize shareholder value in the near-term;
•	 In the medium-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; and
•	 In the longer-term the Group will maximise production 
and export routes to ensure shareholder value is 
progressively increased over time. 
Current trading and prospects
Since its first admission the Company has received only 
minimal income. The Directors are focused on seeking 
early production from the two core Contract Areas. 
For the year ended 31 December 2010 the Group  
reported an after tax loss of US$54.1 million and had  
total equity of US$58.4 million.
The Directors intend to manage the activities of the 
Company in a conservative manner. 
Key	str engths
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:
•	 Experienced team
 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.
•	 Significant near-term production
 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.
•	 Significant possibility of additional reserves
 In addition to existing reserves, the Directors consider 
there is a good chance that the actual recoverable 
reserves will prove to be significantly higher, that the 
Contract Areas have historically been inadequately or 
poorly explored, and that the Contract Areas offer 
outstanding development potential.
Directors’ Report and Business Review
RXP2635 - AR10 Front AW11.indd   16 20/05/2011   16:50 Governance
17 Roxi Petroleum plc Annual Report and Accounts 2010
•	 Further acquisition opportunities
 The Directors consider that with its experienced  
team 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.
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:
•	 Financing risks
 The Group continually monitors the financing 
arrangements to ensure the continuation of the 
operational activities. Although the Group has 
secured adequate financing of Galaz and Company 
LLP for 2011 and 2012, it is still in the process of 
seeking financing for BNG LLP for the following two 
to three years.
•	 Exploration risk
 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. 
•	 Environmental and other regulatory requirements
 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 the 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.
•	 Operational risks
 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 2010 was 
US$5.0 million (2009:US$ 4.0 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 2010 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 100 days 
(2009: 189 days).
RXP2635 - AR10 Front AW11.indd   17 20/05/2011   16:50 Goverannce
18 Roxi Petroleum plc Annual Report and Accounts 2010
Directors’ Report and Business Review continued
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.
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.
The Group, together with its partners, has developed a 
balanced scorecard system. The Directors consider that 
the organisation and its operations have developed 
sufficiently for such a system to improve the overall 
operational efficiency and performance and at the same 
time link to the performance, evaluation and remuneration 
scheme across the Group.
Going concern
The financial statements have been prepared on a going 
concern basis based upon projected future cash flows  
and planned work programmes. 
On 26 April 2011 the Group entered into a binding 
unsecured loan agreement with one of its related parties, 
Verom International NV, for up to US$6,000,000 (see Note 
32.7). In the opinion of the Directors this will cover the 
working capital needs until pilot production from South 
Yelemes commences. From this point operations will be 
cash generative. 
 In the longer term the Company will need to secure a 
farm-out partner to fund the ongoing work programme 
on BNG, for which the major part of this is expected to 
arise in 2013 when the Group drills the deeper horizons 
identified from the recent seismic work undertaken on the 
license area. 
Directors and Directors’ interests
The Directors of the Company who served during the  
year were:
Dir ector Role
Mr Clive Carver Non-Executive Chairman
Mr David Wilkes Chief Executive Officer 
Mr Hyunsik Jang Chief Operating Officer 
(appointed 18 June 2010)
Mr Kuat Oraziman Executive Director
Mr Edmund Limerick Non-Executive Director 
(appointed 1 February 2010)
Mr Rob Schoonbrood Chief Executive Officer
(resigned 1 January 2010)
Mr Duncan McDougall Executive Technical Director
(resigned 18 June 2010)
Biographical details of the current Directors are set out  
on page 14. 
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.
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19 Roxi Petroleum plc Annual Report and Accounts 2010
Auditors
The Company’s auditors, BDO LLP, have indicated their 
willingness to continue in ofﬁ ce 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 ﬁ nancial statements in accordance with 
applicable law and regulations. 
Company law requires the Directors to prepare ﬁ nancial 
statements for each ﬁ nancial year. Under that law the 
Directors have elected to prepare the Group and Company 
ﬁ nancial statements in accordance with International 
Financial Reporting Standards (IFRSs) as adopted by the 
European Union. Under Company law the Directors must 
not approve the ﬁ nancial statements unless they are 
satisﬁ ed that they give a true and fair view of the state of 
affairs of the Group and Company and of the proﬁ t or loss 
of the Group and Company for that period. The Directors 
are also required to prepare ﬁ nancial statements in 
accordance with the rules of the London Stock Exchange 
for companies trading securities on the Alternative 
Investment Market. 
In preparing these ﬁ nancial 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 ﬁ nancial statements;
•  prepare the ﬁ nancial statements on the going concern 
basis unless it is inappropriate to presume that the 
Company will continue in business.
The Directors are responsible for keeping adequate 
accounting records that are sufﬁ cient to show and explain 
the Company’s transactions and disclose with reasonable 
accuracy at any time the ﬁ nancial position of the Company 
and enable them to ensure that the ﬁ nancial 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 ﬁ nancial 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 ﬁ nancial 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 
ﬁ nancial statements contained therein.
London Registrars Plc.
Company Secretary
19 May 2011
RXP2635 - AR10 Front AW11.indd   19 23/05/2011   18:05 Goverannce
20 Roxi Petroleum plc Annual Report and Accounts 2010
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	agr eement/
appointment	letter
Date	of	last	r enewal		
of	appointment
Executive
David Wilkes 1 October 2009 1 January 2010
Kuat Oraziman 1 April 2007 1 January 2008
Hyunsik Jang 1 February 2010 18 June 2010
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$. 
 
2010		
Salary/fees
2010		
Benefits
2010	
Shar e-based	
payments
2010		
T otal
2009		
T otal
Clive Carver 96,000 – 7,313 103,313 265,011
Rob Schoonbrood – – – – 725,368
Edmund Limerick 44,000 – 12,038 56,038 –
David Wilkes 566,667 94,315 218,339 879,321 166,367
Hyunsik Jang 305,558 53,654 31,085 390,297 –
Duncan McDougall 207,780 41,521 2,359 251,660 613,809
Kuat Oraziman 461,566 6,741 7,313 475,620 499,573
The highest paid Director had emoluments totalling US$879,321. The highest paid Director was granted 2,000,000, and 
exercised nil, share options during the year. For further details on Directors emoluments see Notes 6 and 31.4.
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 2010.  
RXP2635 - AR10 Front AW11.indd   20 20/05/2011   16:50 Governance
21 Roxi Petroleum plc Annual Report and Accounts 2010
Shar e	options
The current interests as at approval of accounts of the current Directors in share options agreements are as follows:
Curr ent	Dir ectors	–	Curr ent	inter est Granted Option Price Expiry date
Clive Carver 750,000 13p January 12, 2021
David Wilkes 3,860,000 13p January 12, 2021
Kuat Oraziman 3,090,000 13p January 12, 2021
Hyunsik Jang 3,090,000 13p January 12, 2021
Edmund Limerick 750,000 13p January 12, 2021
Curr ent	Dir ectors	–	Curr ent	inter est Granted Option Price Expiry date
Clive Carver 538,264 12p August 14, 2019
David Wilkes 354,918 12p October 1, 2019
David Wilkes 2,000,000 12p February 15, 2020
Kuat Oraziman 269,132 12p August 14, 2019
Hyunsik Jang 750,000 12p June 22, 2020
Edmund Limerick 200,000 12p February 15, 2020
Curr ent	Dir ectors	–	Curr ent	inter est Granted Option Price Expiry date
Clive Carver 1,345,660 38p May 22, 2017
David Wilkes 1,162,555 38p October 1, 2019
Kuat Oraziman 672,830 38p May 22, 2017
Curr ent	Dir ectors	–	Curr ent	inter est Granted Option Price Expiry date
Clive Carver 1,215,385 65p February 29, 2018
Clive Carver 387,692 65p April 22, 2018
David Wilkes 1,462,618 65p October 1, 2019
Kuat Oraziman 607,692 65p February 29, 2018
Kuat Oraziman 193,846 65p April 22, 2018
RXP2635 - AR10 Front AW11.indd   21 20/05/2011   16:50 Goverannce
22 Roxi Petroleum plc Annual Report and Accounts 2010
Remuneration Committee continued
Table for share options issued at 31 December 2010   
Directors Granted Option Price Expiry date
Clive Carver 538,264 12p August 14, 2019
David Wilkes 354,918 12p October 1, 2019
David Wilkes 2,000,000 12p February 15, 2020
Kuat Oraziman 269,132 12p August 14, 2019
Hyunsik Jang 750,000 12p June 22, 2020
Edmund Limerick 200,000 12p February 15, 2020
Directors Granted Option Price Expiry date
Clive Carver 1,345,660 38p May 22, 2017
David Wilkes 1,162,555 38p October 1, 2019
Kuat Oraziman 672,830 38p May 22, 2017
Directors Granted Option Price Expiry date
Clive Carver 1,215,385 65p February 29, 2018
Clive Carver 387,692 65p April 22, 2018
David Wilkes 1,462,618 65p October 1, 2019
Kuat Oraziman 607,692 65p February 29, 2018
Kuat Oraziman 193,846 65p April 22, 2018
On behalf of the Directors of Roxi Petroleum plc 
 
Clive Carver
Chairman of Remuneration Committee 
19 May 2011
 
RXP2635 - AR10 Front AW11.indd   22 23/05/2011   17:52 Governance
23 Roxi Petroleum plc Annual Report and Accounts 2010
In common with the Board’s commitment to apply best 
practice corporate governance procedures and with 
reference to the Combined Code on corporate governance 
the Board has prepared the following report. As an AIM 
Company there is no requirement to comply with the 
Combined 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 2007, 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:
Clive Carver Non-Executive Chairman
David Wilkes Executive
Kuat Oraziman Executive
Hyunsik Jang Executive
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 10 and 19 times during 2010 and 2009 
respectively, with the following attendance:
2010 2009
Mr C Carver 10 19
Mr E Limerick 7 –
Mr D Wilkes 10 7
Mr K Oraziman 8 15
Mr H Jang 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 and Nomination Committee
The remuneration committee, comprising Clive Carver, 
David Wilkes, Edmund Limerick and Kuat 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 to the current 
size of the Group to establish an internal audit function.
Report on Corporate Governance
RXP2635 - AR10 Front AW11.indd   23 20/05/2011   16:50 Financial Statements
Roxi Petroleum plc Annual Report and Accounts 2010 24
Independent Auditors’ Report to the Members of Roxi Petroleum Plc
We have audited the financial statements of Roxi 
Petroleum plc for the year ended 31 December 2010 
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 2010 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
19 May 2011
BDO LLP is a limited liability partnership registered in 
England and Wales (with registered number OC305127).
RXP2635 - AR10 BACK AW11.indd   24 23/05/2011   17:54 Financial Statements
25 Roxi Petroleum plc Annual Report and Accounts 2010
Notes
Year to  
31 December 
2010  
$’000
Year to  
31 December 
2009  
$’000
Revenue 123 817
Cost of sales (123) (817)
– –
Impairment of unproven oil and gas assets 11,15 (10,354) (11,882)
Gain/(loss) on disposal of subsidiary excluding release of 
cumulative translation reserve
16 1,641 (716)
Release of cumulative translation reserve 16 (15,984) (341)
Provision against joint venture receivable 15 (7,818) (4,171)
Provision against other receivables 19 (7,763) –
Share-based payments 28 (306) (1,045)
Other administrative expenses (7,564) (13,564)
Administrative expenses (48,148) (31,719)
Operating loss 4 (48,148) (31,719)
Finance cost 7 (6,124) (5,889)
Finance income 8 5,459 4,157
Loss before taxation (48,813) (33,451)
Taxation 9 (5,248) (894)
Loss after taxation (54,061) (34,345)
Loss attributable to minority interests (2,351) (10,275)
Loss attributable to equity shareholders (51,710) (24,070)
(54,061) (34,345)
Basic and diluted loss per ordinary share (US cents) 10 12.3 6.2
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 68 form part of these financial statements.
 
Consolidated Income Statement
RXP2635 - AR10 BACK AW11.indd   25 20/05/2011   16:49 Financial Statements
Roxi Petroleum plc Annual Report and Accounts 2010 26
Consolidated Statement of Comprehensive Income
Year ended  
31 December 
2010  
US$000
Year ended  
31 December 
2009  
US$000
Loss after taxation (54,061) (34,345)
Other comprehensive income:
Exchange differences on translating foreign operations 102 (41,541)
Other comprehensive income/(loss) for the year before and after taxation 102 (41,541)
Total comprehensive loss for the year (53,959) (75,886)
Total comprehensive income attributable to:
Owners of parent (51,638) (46,064)
Minority interest (2,321) (29,822)
The notes on pages 31 to 68 form part of these financial statements.
RXP2635 - AR10 BACK AW11.indd   26 20/05/2011   16:49 Financial Statements
27 Roxi Petroleum plc Annual Report and Accounts 2010
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Shares 
to be 
issued 
$’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 2009 64,549 85,909 – 20,175 2,900 2,378 – (36,017) 139,894 70,439 210,333
Total comprehensive 
income for the year – – – – (21,994) – – (24,070) (46,064) (29,822) (75,886)
Arising on share 
issues 7,925 18,655 – (20,175) – – – – 6,405 – 6,405
Share issue cost – (259) – – – – – – (259) – (259)
Arising on loan from 
shareholder – – – – – – 1,476 – 1,476 – 1,476
Reallocation* – – – – – – (1,211) – (1,211) 1,211 –
Arising on exercise 
of warrants – – – – – – – 749 749 – 749
Arising on employee 
share options – – – – – – – 1,045 1,045 – 1,045
Arising on share split (64,702) – 64,702 – – – – – – – –
Disposal of subsidiary – – – – – – – – – (12,125) (12,125)
Total equity as at 
31 December 2009 7,772 104,305 64,702 – (19,094) 2,378 265 (58,293) 102,035 29,703 131,738
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Shares 
to be 
issued 
$’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
Shares to be issued Amount subscribed for unissued share capital
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
*   Reallocation – reallocation arises as a result of the Company assuming certain costs on behalf of the minority interests.
** Forfeited warrants-arises as a result of the Company’s expired warrants during 2010, see note 29. 
*** Purchase of additional share in subsidiary - see note 14.
The notes on pages 31 to 68 form part of these financial statements.
Consolidated Statement of Changes in Equity
RXP2635 - AR10 BACK AW11.indd   27 20/05/2011   16:49 Financial Statements
Roxi Petroleum plc Annual Report and Accounts 2010 28
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Shares to 
be issued 
$’000
Other 
reserves 
$’000
Capital 
contribution 
reserve  
$’000
Retained 
earnings 
$’000
Total  
$’000
Total equity as at  
1 January 2009 64,549 85,909 – 20,175 2,378 – (47,975) 125,036
Total comprehensive income  
for the year – – – – – – (17,393) (17,393)
Arising on share issues 7,925 18,655 – (20,175) – – – 6,405
Share issue cost – (259) – – – – – (259)
Arising on loan from shareholder – – – – – 1,476 – 1,476
Arising on exercise of warrants – – – – – – 749 749
Arising on employee share options – – – – – – 1,045 1,045
Arising on share split (64,702) – 64,702 – – – – –
Total equity as at  
31 December 2009 7,772 104,305 64,702 – 2,378 1,476 (63,574) 117,059
Share 
capital 
$’000
Share 
premium 
$’000
Deferred 
shares 
$’000
Shares to 
be issued 
$’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
Shares to be issued Amount subscribed for unissued share capital
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 68 form part of these financial statements.
 
Parent Company Statement of Changes in Equity
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29 Roxi Petroleum plc Annual Report and Accounts 2010
Company number 5966431 Notes
Group
2010  
$’000
Company
2010  
$’000
 Group
2009  
$’000
 Company 
2009  
$’000
Assets
Non-current assets
Unproven oil and gas assets 11 76,298 – 187,608 –
Property, plant and equipment 12 674 5 896 48
Investments in subsidiaries 13 – 96,122 – 102,522
Other receivables 19 49,101 10,789 21,936 29,651
Restricted use cash 221 1 414 –
Total non-current assets 126,294 106,917 210,854 132,221
Current assets
Available for sale financial assets 30 – – 1,106 1,106
Inventories 18 762 – 639 –
Other receivables 19 1,748 236 4,421 65
Cash and cash equivalents 20 4,959 2,194 3,950 983
7,469 2,430 10,116 2,154
Assets in disposal Group classified as held for sale 15 8,357 – – –
Total current assets 15,826 2,430 10,116 2,154
Total assets 142,120 109,347 220,970 134,375
Equity and liabilities
Capital and reserves attributable  
to equity holders of the parent
Share capital 21 7,832 7,832 7,772 7,772
Share premium 104,798 104,798 104,305 104,305
Deferred shares 21 64,702 64,702 64,702 64,702
Other reserves 1,779 1,779 2,378 2,378
Capital contribution reserve (2,229) 1,344 265 1,476
Retained earnings (107,530) (87,738) (58,293) (63,574)
Cumulative translation reserve (3,038) – (19,094) –
66,314 92,717 102,035 117,059
Minority interests (7,954) – 29,703 –
Total equity 58,360 92,717 131,738 117,059
Current liabilities
Trade and other payables 22 6,911 11,714 13,737 6,669
Purchase consideration received in advance 23 14,213 – 19,221 –
Short-term borrowings 24 14,009 4,460 22,267 8,434
Warrant liability 29 332 332 1,630 1,630
Current income tax 580 – 1,006 –
Current provisions 25 2,552 105 4,910 583
38,597 16,611 62,771 17,316
Liabilities directly associated with assets in disposal 
Group classified as held for sale 15 6,906 – – –
Total current liabilities 45,503 16,611 62,771 17,316
Non-current liabilities
Borrowings 26 27,818 – 1,637 –
Deferred tax liabilities 27 8,725 – 20,010 –
Non-current provisions 25 695 – 3,518 –
Other payables 1,019 19 1,296 –
Total non-current liabilities 38,257 19 26,461 –
Total liabilities 83,760 16,630 89,232 17,316
Total equity and liabilities 142,120 109,347 220,970 134,375
These financial statements were approved and authorised for issue by the Board of Directors on 19 May 2011 and were 
signed on its behalf by:
Clive Carver       David Wilkes
Chairman of the Board      Chief Executive Officer
The notes on pages 31 to 68 form part of these financial statements..
Consolidated and Parent Company Statement of Financial Position 
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Roxi Petroleum plc Annual Report and Accounts 2010 30
Consolidated and Parent Company Cashflow Statements
 Year to 
31 December 2010
Year to 
31 December 2009
Notes
Group 
$’000
Company 
$’000
Group 
$’000
Company 
$’000
Cash flows from operating activities
Cash received from customers 123 – 817 –
Payments made to suppliers for goods  
and services (12,838) (3,808) (8,034) (3,424)
(12,715) (3,808) (7,217) (3,424)
Cash flows from investing activities
Purchase of plant, property and equipment 12 (383) – (24) –
Additions to unproven oil and gas assets 11 (11,926) – (18,294) –
Disposal of plant, property and equipment 12 44 32 – –
Transfers to/from restricted use cash 193 (1) (348) –
Acquisition of subsidiaries, net of cash acquired 14 (3,380) – – –
Disposal of subsidiary 16,23 19,682 – 4,956 –
Purchase consideration received in advance 23 13,723 – 19,221 5,000
Repayment of financial aid and loans by subsidiaries – 13,629 – 1,185
Issue of financial aid and loans to subsidiaries – (9,677) – (12,983)
Acquisition of joint venture 17 165 – 900 –
Net cash flow from investing activities 18,118 3,983 6,411 (6,798)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital, 
net of expenses relating to issue of shares 553 553 6,079 6,079
Repayment of borrowings (16,433) (8,433) (450) (450)
New loans received 27,878 3,500 5,000 5,000
Loans from subsidiaries – 5,416 – 410
Loans to joint venture from partners 639 – 613 –
Issue of loans to joint venture (17,030) – (6,860) –
Net cash from financing activities (4,393) 1,036 4,382 11,039
Net increase in cash and cash equivalents 1,010 1,211 3,576 817
Effects of exchange rates – – (37) 14
Cash and cash equivalents at beginning of period 3,950 983 411 152
Cash and cash equivalents at end of period 20 4,960 2,194 3,950 983
There were no significant non-cash transactions during the year except as disclosed in note 25 (change in estimates).
The notes on pages 31 to 68 form part of these financial statements.
 
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31 Roxi Petroleum plc Annual Report and Accounts 2010
General
Roxi Petroleum plc (“the Company”) is a public Company incorporated and domiciled in England and Wales. The address 
of its registered office is 21 John Street, London, WC1N 2BP. These consolidated financial statements were authorised 
for issue by the Board of Directors on 19 May 2011.
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 26 April 2011 the Group entered into a binding unsecured loan agreement with one of its related parties, Vertom 
International NV, for up to US$6,000,000 (see Note 32.7). In the opinion of the Directors this will cover the working capital 
needs until pilot production from South Yelemes commences. From this point operations will be cash generative. 
In the longer term the Company will need to secure a farm in partner to fund the ongoing work programme on BNG, for 
which the major part of this is expected to arise in 2013 when the Group drills the deeper horizons identified from the 
recent seismic work undertaken on the license area.
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$26,637,000 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 2009. The following standards, interpretations and amendments to 
existing standards have been adopted for the first time in 2010:
International Accounting Standards (IAS/IFRS)
Standard Description Effective date
IAS 27 Amendment – Consolidated and separate financial statements 1 July 2009
IFRS 3 Revised – Business Combinations 1 July 2009
IAS39
Amendment – Financial Instruments: Recognition and Measurement: 
Eligible Hedged Items 1 July 2009
IAS39 Amendment Reclassification of financial assets: effective date and transition 1 July 2009
IFRIC 9 & IAS39 Amendment – Embedded Derivatives 1 January 2010
IFRS 2 Amendment – Group cash settled share–based payments 1 January 2010
IFRS 1 Amendment – Additional exemptions for first–time adopters 1 January 2010
Improvements to IFRSs Amendments to various statements issued 6 May 2010 1 January 2010
International Financial Reporting Interpretations (IFRIC)
Standard Description Effective date
IFRIC 16 Hedges of Net Investment in a Foreign Operation 1 January 2010
IFRIC 17* Distributions of non-cash assets to owners 1 January 2010
IFRIC 18* Transfers of assets from customers 1 January 2010
The adoption of these standards, interpretations and amendments did not affect the Company results of operations or 
financial positions. The presentation of these financial statements incorporates changes arising from adoption of these 
standards, interpretations and amendments.
Notes to the Financial Statements
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Roxi Petroleum plc Annual Report and Accounts 2010 32
Notes to the Financial Statements continued Notes to the Financial Statements
The IASB and IFRIC have issued the following standards and interpretations which are effective for reporting periods 
beginning after the date of these financial statements, and which the Group is not early adopting:
Standard Description Effective date
IAS 32 Amendment – Classification of Right Issues 1 February 2010
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 1 July 2010
IFRS 1 Amendment – First Time Adoption of IFRS 1 July 2010
IAS 24 Revised – Related Party Disclosures 1 January 2011
IFRIC 14 Amendment – IAS 19 Limit on a defined benefit asset 1 January 2011
IFRS 7 * Amendment – Transfer of financial assets 1 July 2011
IFRS 1 * Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters 1 July 2011
Improvements to  
IFRSs (2010) *
Miscellaneous amendments resulting from the IASB’s  
annual improvements projects 1 January 2011
IAS 12 * Deferred Tax: Recovery of Underlying Assets 1 January 2012
IFRS 9 * Financial instruments 1 January 2013
The Group has not yet assessed the impact of IFRS 9. Except for the amended disclosure requirements of IAS 24 (the 
above revised standards), amendments and interpretations are not expected to materially affect the Group’s reporting or 
reported numbers. 
*  Not yet endorsed by European Union.
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. 
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33 Roxi Petroleum plc Annual Report and Accounts 2010
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, unless otherwise stated. RS Munai LLP, 
Beibars Munai LLP, Munaily Kazakhstan LLP, Galaz and Company LLP, Roxi Petroleum Services LLP and Roxi Petroleum 
Kazakhstan LLP, subsidiary undertakings of the Group and Ravninnoe Oil LLP and BNG Ltd 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.
1.5.2 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 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. Deferred tax assets and current 
tax losses have not been recognised since it is uncertain that taxable profits will be available against which deductible 
temporary differences can be utilised.
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Roxi Petroleum plc Annual Report and Accounts 2010 34
Notes to the Financial Statements continued
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 license 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 licenses 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 license/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. 
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 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.
Notes to the Financial Statements
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35 Roxi Petroleum plc Annual Report and Accounts 2010
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 on 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 through the profit or loss basis.
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.
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.
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Roxi Petroleum plc Annual Report and Accounts 2010 36
Notes to the Financial Statements continued
1.17 Share-based payments
The Group has used shares and share options as consideration for goods and services received from suppliers and 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 or excess fair value of the identifiable goods or services 
received, 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 Black-Scholes model. 
1.19 GEM facility
The GEM facility is classified as an available for sale asset. The asset recognised relates to future economic benefits of 
the Group being able to obtain funding via share issue to GEM Global Yield Fund Limited at a 10 per cent discount of the 
market price for the last 15 trading days. This asset has been initially recognized at fair value and at each reporting date 
the available for sale asset is fair valued with changes of fair value recognised in profit or loss as they arise.
1.20 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.
1.21 Cost of sales
During test production cost of sales cannot be reliably estimated and therefore a cost of sales equal to revenue is recognised. 
1.22 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.
1.23 Interest receivable
Interest income is recognised using the effective interest rate method.
1.24 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 1.54.
Notes to the Financial Statements
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37 Roxi Petroleum plc Annual Report and Accounts 2010
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 be 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 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. 
4 Operating loss
Group operating loss for the period has been arrived after charging: 
2010  
$’000
2009  
$’000
Depreciation of property, plant and equipment (Note 12) 267 285
Auditors’ remuneration (Note 5) 299 325
Staff costs (Note 6) 3,717 4,220
Share based payment remuneration (all equity settled, Note 6) 306 1,045
Impairment of unproven oil and gas assets (Note 11) 10,354 11,882
Provision against other receivables (Note 19) 7,763 –
Provision against joint venture receivable (Notes 15,19) 7,818 4,171
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Roxi Petroleum plc Annual Report and Accounts 2010 38
Notes to the Financial Statements continued
5 Group Auditor’s remuneration
Fees payable by the Group to the Company’s auditor and its associates in respect of the year:
 2010  
$’000
2009  
$’000
Fees for the audit of the annual financial statements 227 231
Auditing of accounts of associates of the Company 66 84
Other services 6 10
299 325
6 Employees and Directors
Staff costs during the period
Group
2010
$’000
Company
2010
$’000
Group
2009
$’000
Company
2009
$’000
Wages and salaries 3,229 1,178 3,652 1,712
Social security costs 313 88 393 165
Pension costs 175 10 175 8
Share-based payments 306 306 1,045 1,045
 4,023 1,582 5,265 2,930
Average monthly number  
of people employed  
(including executive Directors)
Group  
2010 
Company  
2010 
Group  
2009 
Company  
2009 
Technical 19 1 18 2
Field operations 13 – 21 –
Finance 17 – 15 3
Administrative and support 44 6 25 4
Other 2 – – –
 95 7 79 9
Key management Compensation
Group  
2010  
$’000
Company  
2010  
$’000
Group  
2009  
$’000
Company  
2009  
$’000
Salaries and short-term 
 employee benefits 1,878 1,409 1,289 1,049
Share-based payments 278 278 845 845
 2,156 1,687 2,134 1,894
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.
Notes to the Financial Statements
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39 Roxi Petroleum plc Annual Report and Accounts 2010
7 Finance cost
Group  
2010  
$’000
 Group  
2009  
$’000
Loan interest payable 2,978 1,454
Unwinding of fair value adjustments on loans 1,951 3,203
Write off of available for sale financial asset 1,106 –
Unwinding of discount on provisions (Note 25) 89 234
 Foreign exchange losses – 998
6,124 5,889
8 Finance income
Group  
2010  
$’000
 Group  
2009  
$’000
Interest income on financing provided to jointly controlled entities 3,526 –
Revaluation of warrants (see note 29) 1,206 3,156
Other 727 1,001
5,459 4,157
9 Taxation
Analysis of charge for the period
Group  
2010  
$’000
 Group  
2009  
$’000
Current tax 5,055 1,848
Deferred tax charge/(credit) 193 (954)
Tax charge 5,248 894
The tax charge for the period can be reconciled to the loss for the year as follows: 
Group  
2010  
$’000
 Group  
2009  
$’000
Loss on ordinary activities before tax (48,813) (33,451)
Tax on the above at the standard rate of corporate income tax in the UK 28%* (13,668) (9,366)
Effects of:
Non deductible expenses 8,738 4,839
Increase of deferred tax liability due to change in future tax rates (see note 27) 1,687 –
Effect of different tax rates overseas 1,922 2,807
Withholding tax on capital gain (see note 16) 4,502 –
Tax losses carried forward 2,067 2,614
Taxation 5,248 894
* (2009:28%)
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Roxi Petroleum plc Annual Report and Accounts 2010 40
Notes to the Financial Statements continued
10 Loss per share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average 
number of ordinary shares outstanding during the period including shares to be issued.
In order to calculate diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume 
conversion of all dilutive potential ordinary shares according to IAS33. Dilutive potential ordinary shares include share 
options granted to employees and Directors where the exercise price (adjusted according to IAS33) is less than the average 
market price of the Company’s ordinary shares during the period. During the year the potential ordinary shares are anti-
dilutive and therefore diluted loss per share has not been calculated. At the balance sheet date there were 70,655,264 
(2009: 88,966,145) potentially dilutive ordinary shares consisting of share options and warrants (notes 28 and 29). 
The calculation of earnings per share is based on:
2010 2009
The basic weighted average number of Ordinary shares in issued  
during the period 419,847,345 387,244,655
The loss for the period attributable to equity shareholders ($’000) 51,710 24,070
11 Unproven oil and gas assets
Cost
Group
$’000
Cost at 1 January 2009 340,446
Additions 11,004
Sales from test production (817)
Disposal of subsidiary (note 16) (85,887)
Foreign exchange difference (66,045)
Recognition of joint venture (note 17) 13,148
Cost at 31 December 2009 211,849
Additions 8,937
Sales from test production (123)
Disposal of subsidiary (note 16) (145,970)
Foreign exchange difference 837
Reclassification to assets held for sale (note 15) (30,533)
Other reclassifications 13,130
Recognition of joint venture (note 17) 34,082
Cost at 31 December 2010 92,209
Notes to the Financial Statements
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41 Roxi Petroleum plc Annual Report and Accounts 2010
Accumulated impairment
Group
$’000
Accumulated impairment at 1 January 2009 67,412
Impairment in the year 11,882 
Disposal of subsidiary (42,060)
Foreign exchange difference (12,993)
Cost at 31 December 2009 24,241
Impairment in the year 10,354
Disposal of subsidiary (note 16) (8,905)
Foreign exchange difference 29
Reclassification to assets held for sale (note 15) (22,938)
Other reclassifications 13,130
Cost at 31 December 2010 15,911
Net book value at 1 January 2009 273,034
Net book value at 31 December 2009 187,608
Net book value at 31 December 2010 76,298
Unproven oil and gas assets represent the acquisition cost and subsequent exploration activities in respect of five licenses 
held by Kazakh Group entities. The carrying values of those assets at 31 December 2010 were as follows: Beibars Munai 
LLP US$ nil (2009: US$ nil), BNG Ltd LLP 23,41% share US$ 35,185,000 (2009 100% consolidated: US$133,959,000), 
Galaz and Company LLP US$ 41,113,000 (2009: US$37,393,000), Munaily Kazakhstan LLP US$ nil (2009: US$ 428,000) 
and Ravninnoe Oil LLP 30% share classified as assets held for sale US$ 7,595,000 (2009: US$ 15,828,000).
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, the Directors have made provisions of US$10,354,000 in respect of the Ravninnoe 
asset, with an offsetting release of deferred tax of US$1,494,000. In the prior year provisions totaling US$79,294,000 
were made, comprising Ravninnoe (US$51,524,000), BNG (US$14,281,000), Beibars (US$11,882,000) and Munaily 
(US$1,607,000), with an offsetting release of deferred tax of US$11,066,000.
RXP2635 - AR10 BACK AW11.indd   41 20/05/2011   16:49 Financial Statements
Roxi Petroleum plc Annual Report and Accounts 2010 42
Notes to the Financial Statements continued
12 Property, plant and equipment
Group
Motor vehicles
$’000
Buildings
$’000
Other 
$’000
Total
$’000
Cost at 1 January 2009 277 816 772 1,865
Additions – 14 10 24
Disposals (54) (18) (18) (90)
Reclassifications – – (12) (12)
Foreign exchange difference – (140) (115) (255)
Disposal of subsidiary (note 16) (28) (104) (57) (189)
Recognition of joint venture (note 17) 9 31 17 57
Cost at 31 December 2009 204 599 597 1,400
Additions 105 – 278 383
Disposals (57) – (48) (105)
Reclassifications 62 (138) 76 –
Reclassification to assets held for sale (note 15) (8) (30) (38) (76)
Disposal of subsidiary (note 16) (145) – (250) (395)
Recognition of joint venture (note 17) 34 – 59 93
Cost at 31 December 2010 195 431 674 1,300
Depreciation at 1 January 2009 93 59 183 335
Charge for the period 51 54 180 285
Disposals (23) – (6) (29)
Impairment – – (3) (3)
Foreign exchange difference – (17) (14) (31)
Disposal of subsidiary (note 16) (16) (31) (29) (76)
Recognition of joint venture (note 17) 5 9 9 23
Depreciation at 31 December 2009 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 15) (3) (12) (13) (28)
Disposal of subsidiary (note 16) (34) – (39) (73)
Recognition of joint venture (note 17) 8 – 9 17
Depreciation at 31 December 2010 86 113 427 626
Net book value at:
1 January 2009 184 757 589 1,530
31 December 2009 94 525 277 896
31 December 2010 109 318 247 674
 
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43 Roxi Petroleum plc Annual Report and Accounts 2010
Company
Motor vehicles
$’000
Buildings
$’000
Other 
$’000
Total
$’000
Cost at 1 January 2009 – – 70 70
Additions – – – –
Cost at 31 December 2009 – – 70 70
Disposals – – (57) (57)
Cost at 31 December 2010 – – 13 13
Depreciation at 1 January 2009 – – 8 8
Charge for the period – – 14 14
Depreciation at 31 December 2009 – – 22 22
Charge for the period – – 11 11
Disposals – – (25) (25)
Depreciation at 31 December 2010 – – 8 8
Net book value at:
1 January 2009 – – 62 62
31 December 2009 – – 48 48
31 December 2010 – – 5 5
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Roxi Petroleum plc Annual Report and Accounts 2010 44
Notes to the Financial Statements continued
13 Investments (Company)
Investments
Company 
$’000
Cost
At 1 January 2009 130,821
Additions* 2,954
At 31 December 2009 133,775
Additions –
At 31 December 2010 133,775
Impairment
At 1 January 2009 27,498
Impairment in 2009** 3,755
At 31 December 2009 31,253
Impairment in 2010*** 6,400
At 31 December 2010 37,653
Net book value at: 
31 December 2009 102,522
31 December 2010 96,122
*  As described in Note 29 during the year ended 31 December 2009, Kuat Oraziman agreed to subordinate his US$10,000,000 loan to Galaz Energy BV to 
the US$5,000,000 loan entered into with Altius Energy Ltd. In return for this, Kuat Oraziman received 36,000,000 warrants to subscribe for shares in the 
Company (on 29 June 2009 Kuat Oraziman transferred his 36,000,000 warrants to Altius Energy Limited). As this transaction occurred for the benefit of 
Galaz Energy BV an additional investment has been recognized in the Company totaling to the fair value of the warrants issued.
**  The investment in Beibars BV, which holds 50% of Beibars Munai LLP, has been fully impaired during 2009 due to the impairment of oil and gas assets as 
described in Note 11. 
*** The investment in Ravninnoe BV, which holds 30% of Ravninnoe Oil LLP, has been impaired during the year due to the impairment of oil and gas assets as 
described in Note 11. 
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45 Roxi Petroleum plc Annual Report and Accounts 2010
The Company’s principal subsidiary undertakings and Ravninnoe Oil LLP and BNG Ltd LLP, being jointly controlled 
entities, which are included in these consolidated financial statements are:
Name of undertaking
Country of 
incorporation
Effective 
holding and 
proportion of 
voting rights 
held 2010
Effective 
holding and 
proportion of 
voting rights 
held 2009 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 30%* 30%* Exploration Company
BNG Ltd LLP Kazakhstan 23%* 58%* Exploration Company
Galaz and Company LLP Kazakhstan 58%* 50%* 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 
RS Munai LLP, Beibars Munai LLP, Munaily Kazakhstan LLP, Galaz and Company 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. 
Ravninnoe Oil LLP and BNG Ltd LLP are jointly controlled by the Group and Canamens Energy BV and as a result, from 
13 July 2009 and 11 January 2010 respectively they have been proportionately consolidated as a jointly controlled entity 
as disclosed in Note 17. Ravninnoe Oil LLP is classified as asset held for sale on 31 December 2010, see note 15.
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Roxi Petroleum plc Annual Report and Accounts 2010 46
Notes to the Financial Statements continued
14 Acquisitions
On 21 July 2010, Galaz Energy BV acquired an additional 13% in its subsidiary Galaz and Company LLP for a total 
consideration of US$3,380,000 that increased Company’s interest from 50% to 58%. Related share in net assets of 
Galaz and Company LLP at the date of acquisition was equal to US$1,018,000. The difference between the purchase 
consideration and net assets was charged directly to the consolidated statement of changes in equity. 
15 Assets and liabilities classified as held for sale
In October 2010 the Company announced that it is going to sell its entire 30% interest in Ravninnoe Oil LLP to Beimar 
Oil LLP (a private company) for US$ 2.6 million. The sales and purchase agreement is subject to the receipt of certain 
waivers from regulatory authorities. After all necessary waivers are received, the Company will transfer its title to the 
Ravninnoe interest that is expected to occur in the nearest future. Following the completion of the sale the Company will 
have no further interest in Ravninnoe Oil LLP. 
The assets and liabilities have been classified as held for sale in the consolidated statement of financial position. 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 on 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$18,172,000 and release of corresponding deferred tax of US$1,494,000 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. 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.
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47 Roxi Petroleum plc Annual Report and Accounts 2010
16 Disposals
BNG Ltd LLP 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 is required to loan (“BNG Loan 1”) to BNG Ltd LLP US$27 million of the 
proceeds. Although the funds are passed down in full by BNG Energy BV, 23% of the repayments are required to be 
made to Canamens. This loan was restated on completion of Stage 2, so that 35% of the amount loaned was repayable 
to Canamens and 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 is required to loan (“BNG Loan 2”) to BNG Ltd LLP all US$23 million of 
the proceeds. Although the funds are passed down in full by BNG Energy BV, 35% of the repayments are 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 retains an effective interest in BNG Ltd LLP of 23.41% (see note 
32.1 for further information).
The Company has subsequent to the year end agreed to cancel the SPA for the purchase of shares in BNG Ltd LLP by 
Canamens (see note 32.8 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
Less: Release of cumulative translation reserve* 10,504
41,496
Loss on disposal 7,496
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Roxi Petroleum plc Annual Report and Accounts 2010 48
Notes to the Financial Statements continued
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
Less: Release of cumulative translation reserve* 5,480
29,847
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$57,000,000 purchase consideration US$4,501,954 was withheld by Canamens Energy BV in order to pay 
withholding tax on the capital gain. 
Until the date of disposal, BNG Ltd LLP was treated as a subsidiary and was fully consolidated into the financial 
statements of the Group. From the date of disposal, BNG Ltd LLP was treated as a jointly controlled entity and 
proportionally consolidated.
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49 Roxi Petroleum plc Annual Report and Accounts 2010
Ravninnoe Oil LLP disposal:
On 14 November 2008, the Company, Kuat Oraziman, Ravninnoe BV, Vertom International BV and Canamens Energy BV 
signed a Sale and Purchase Agreement (“SPA”) to farm out 32.5% of Ravninnoe Oil LLP (“Ravninnoe”) as follows:
•	 Kuat Oraziman agreed to sell his 12.5% interest in Ravninnoe to Canamens;
•	 Ravninnoe BV agreed to sell 20% of its interest in Ravninnoe to Canamens; and
•	 Vertom International BV and the Group agreed to transfer to Canamens 26.2% of the total loan receivables (as 
defined in the SPA) made to Ravninnoe by the Group and Vertom.
The farm out was carried out in 2 stages. Under Stage 1 of the SPA, US$5,000,000 was paid by Canamens to Kuat 
Oraziman for 10% of his interest in Ravninnoe and US$1,570,000 of the Group’s loans to Ravninnoe.
Following Canamens’ exercise of its option to purchase the Stage 2 Interest, Canamens, in return for a consideration of 
US$8,500,000 payable to Ravninnoe BV, received an additional 22.5% of the equity of Ravninnoe from Ravninnoe BV (20%) 
and from Kuat Oraziman (2.5%) and the remaining 22.5% of the total loans receivable from the Group and Vertom International 
BV. The consideration of US$8,500,000 was required to be lent to Ravninnoe for the purposes of drilling Ravninnoe well 
20. Both stages were completed in 2009. The Group’s remaining interest in Ravninnoe Oil LLP is currently 30%. 
The loss on disposal of Ravninnoe Oil LLP was determined as follows:
At date of 
disposal 
$’000
Non-current assets 44,518
Inventories 117
Trade and other receivables 543
Cash and cash equivalents 3,001
Trade and other payables (19,403)
Non-current liabilities (4,524)
Net assets at date of disposal 24,252
Total consideration 8,500
Less: 20% of net assets on disposal 4,850
Less: transfer of the Group’s loans receivable from Ravninnoe 3,286
Less: recognition of 30% share of additional liability to Vertom (see note 25) 1,080
Less: Recycling of cumulative translation reserve 341
9,557
Loss on disposal 1,057
The net cash inflow on disposal comprises:
Cash received 7,957
Cash disposed of (3,001)
Net cash inflow 4,956
Of the $8,500,000 purchase consideration US$543,000 was withheld by Canamens Energy BV in order to pay 
withholding tax. 
Until the date of disposal, Ravninnoe Oil LLP was treated as a subsidiary and was fully consolidated into the financial 
statements of the Group. From the date of disposal, Ravninnoe Oil LLP was treated as a jointly controlled entity and 
proportionally consolidated as detailed in note 17 .
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Roxi Petroleum plc Annual Report and Accounts 2010 50
Notes to the Financial Statements continued
17 Jointly controlled entity
From 30 April 2010, the Group has a 23.41% interest in the jointly controlled entity BNG Ltd LLP which has been 
accounted for by proportional consolidation. The following amounts have been recognised in the Group’s consolidated 
statement of financial position relating to this jointly controlled entity.
 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)
BNG Ltd LLP’s contingent liabilities and capital commitments are disclosed in note 25.
Until 11 January 2010, BNG Ltd LLP was treated as a subsidiary and was fully consolidated into the Group accounts. 
From 13 July 2009, the Group has a 30% interest in the jointly controlled entity Ravninnoe Oil LLP which has been 
accounted for by proportional consolidation as well. The following amounts have been recognised in the Group’s 
consolidated statement of financial position relating to this jointly controlled entity as of 31 December 2009.
 2009 
$’000
Non-current assets 16,703
Current assets 1,065
Total assets 17,768
Non-current liabilities 2,468
Current liabilities 8,888
Total liabilities 11,356
Expenses (107)
Loss after tax (107)
As the Company is going to sell Ravninnoe interest in the nearest future related assets and liabilities were classified as 
assets and liabilities held for sale as of 31 December 2010, see note 15. 
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51 Roxi Petroleum plc Annual Report and Accounts 2010
18 Inventories
 Group
2010
$’000
Company
2010
$’000
 Group
2009
$’000
Company
2009
$’000
Materials and supplies 762 – 639 –
 762 – 639 –
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
2010
$’000
Company
2010
$’000
Group
2009
$’000
Company 
2009
$’000
Amounts falling due after one year:
Advances paid 600 – – –
InterCompany receivables – 10,765 – 29,627
Other receivables 15,187 24 14,421 24
Amounts due from joint venture 33,314 – 7,515 –
49,101 10,789 21,936 29,651
Amounts falling due within one year:
Advances paid 132 7 4,294 18
Prepayments 41 39 22 22
Other receivables 1,575 190 105 25
 1,748 236 4,421 65
Other receivables falling due after one year include Kazakh VAT, an amount of US$7,769,000 (2009: US$11,900,000) 
in respect of an indemnity against a loan included within short-term borrowings as detailed in note 31 and an amount 
of US$ 5,000,000 in respect of a loan facility as detailed in note 31. The carrying amount of other receivables is a 
reasonable approximation of fair value.
Amounts due from joint venture relate to BNG Ltd LLP and Ravninnoe Oil LLP and are shown net of provision of  
US$12.0 million (2009: US$4.2 million) and bear interest at rates between LIBOR+2% to LIBOR +7%. 
Advances paid relate to amounts paid to third parties for services and materials to be provided post year end. 
Other receivables falling due within one year include amount of US$1,300,000 related to deferred purchase consideration 
receivable from Canamens in respect of BNG Ltd. LLP 2 stage disposal that is shown net of provision of US$11,943,000 
(see note 32.1 for further information). The provision is partially offset by reduction in the related loan to Canamens in the 
amount of US$4,180,000, giving the net provision of US$7,763,000.
InterCompany receivables are shown net of provision of US$26,239,000 (2009: US$18,462,000), and bear interest rates 
between LIBOR +2% and LIBOR +7%. 
RXP2635 - AR10 BACK AW11.indd   51 20/05/2011   16:49 Financial Statements
Roxi Petroleum plc Annual Report and Accounts 2010 52
Notes to the Financial Statements continued
20 Cash and cash equivalents
 Group
2010
$’000
Company
2010
$’000
Group
2009
$’000
Company 
2009
$’000
Cash at bank and in hand 4,959 2,194 3,950 983
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
2010
$’000
Company
2010
$’000
Group
2009
$’000
Company
2009
$’000
US Dollar 4,808 2,135 2,129 (303)
Kazakh Tenge 106 8 535 –
Sterling 51 51 1,281 1,281
Euro (6) – 5 5
4,959 2,194 3,950 983
For the purpose of the consolidated statement of cash flow, cash and cash equivalents include also cash related to 
assets classified as held for sale in the amount of US$1,000, see note 15.
21 Called up share capital
Group and Company
Number of 
ordinary shares $’000
Balance at 31 December 2008 324,855,567 64,549
Remaining consideration for Eragon Petroleum Limited 7 May 2009 48,461,538 7,204
Effect of share split (see below) 28 May 2009 – (64,702)
Ordinary shares issued –  
for cash consideration US$500,000 2 June 2009 3,215,020 51
Ordinary shares issued
 1
15 July 2009 7,087,500 115
Ordinary shares issued –  
for cash consideration US$990,000 18 September 2009 6,000,000 99
Ordinary shares issued
 2
4 November 2009 9,082,500 149
Ordinary shares issued
 2
20 November 2009 6,430,040 107
Ordinary shares issued
 2
27 November 2009 12,050,000 200
Balance at 31 December 2009 417,182,165 7,772
Ordinary shares issued
 3
 15 February 2010 36,221 5
Ordinary shares issued
 2
9 April 2010 3,600,000 55
420,818,386 7,832
1
 The Company issued 7,087,500 fully paid ordinary shares on 15 July 2009 as the finder’s fee for the funds raised by the issue of shares on 20 November 2008.
2
 These shares were issued for cash on exercise of warrants.
3
  Ordinary shares issued to the warranty holder pursuant to the terms of the deeds of the warrant
RXP2635 - AR10 BACK AW11.indd   52 20/05/2011   16:49 Financial Statements
53 Roxi Petroleum plc Annual Report and Accounts 2010
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. 
22 Trade and other payables – current
 Group
2010
$’000
Company 
2010
$’000
Group
2009
$’000
Company 
2009
$’000
Trade payables 2,709 321 9,233 255
Taxation and social security 99 36 100 50
Accruals 535 500 544 516
Other payables 3,518 2 3,162 438
InterCompany payables – 10,855 – 5,410
Deferred income 50 – 698 –
6,911 11,714 13,737 6,669
23 Purchase consideration received in advance
 Group
2010
$’000
Company 
2010
$’000
Group
2009
$’000
Company 
2009
$’000
Purchase consideration received  
in advance 14,213 – 19,221 –
14,213 – 19,221 –
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 as detailed in note 31. 
As at 31 December 2009 the Purchase consideration received in advance of US$19.2 million relates to amounts received 
in advance from Canamens BNG BV in respect of the acquisition of 23% of BNG Ltd LLP.
RXP2635 - AR10 BACK AW11.indd   53 20/05/2011   16:49 Financial Statements
Roxi Petroleum plc Annual Report and Accounts 2010 54
Notes to the Financial Statements continued
24 Short-term borrowings
 Group
2010
$’000
Company 
2010
$’000
Group
2009
$’000
Company 
2009
$’000
Interest free loan from Kuat Oraziman (a) 3,960 3,960 3,875 3,875
Interest bearing loan from Kuat Oraziman (b) 7,961 – 10,652 –
Loan from Altius Energy (c) – – 4,559 4,559
Loan from Vertom (d) – – 2,398 –
Other borrowings 2,088 500 783 –
14,009 4,460 22,267 8,434
(a) At 31 December 2010 the principal amount of US$4,550,000 represents an interest free loan from Mr Kuat 
Oraziman that was initially repayable on 2 July 2010. During 2009 this loan was subordinated to the loan from 
Altius Energy (see note 29), and as a result was fair valued at this date and subsequently accounted for at 
amortised cost. On 14 May 2010, Kuat 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 an interest 
bearing with an annual rate of 12% (see note 32.6). 
 (b) At 31 December 2010 the US$5,000,000 interest bearing loan from Kuat Oraziman (2009: US$10,000,000) was 
repayable together with accrued interest in July 2011. During 2009 this loan was subordinated to the loan from Altius 
Energy (see note 29), and as a result was fair valued at this date and subsequently accounted for at amortised cost. 
This loan bears interest at LIBOR +7%. The loan is the subject of the Baverstock Indemnity described in note 31.2. 
In December 2010 US$5,000,000 was repaid to Kuat Oraziman under the loan facility arrangement entered between 
Galaz Energy BV, Roxi Petroleum plc, Eragon and Baverstock described in note 31.2. On 26 April 2011, the loan 
agreement was amended by extending its repayment terms to July 2012 (see note 32.6)
(c) Loan from Altius Energy 
On 16 June 2009 the Company received a US$5 million loan from Altius Energy. This loan was repaid on 18 May 
2010. 
 The Group entered into a short-term loan arrangement with Altius on 15 January 2010 whereby Altius lent  
US$3 million to the Company with associated interest of LIBOR plus 7% and repayable on 31 March 2010. The 
loan was repaid on 31 March 2010, together with the associated interest. 
(d) Loan from Vertom 
This amount represents the Group’s 30% share of Ravninnoe Oil LLP’s loan due to Vertom (bearing interest rate 
of 4% per annum). As detailed in note 15, this loan was reclassified to Liabilities directly associated with assets in 
disposal group classified as held for sale.
 
RXP2635 - AR10 BACK AW11.indd   54 20/05/2011   16:49 Financial Statements
55 Roxi Petroleum plc Annual Report and Accounts 2010
25 Provisions
Group only
Employee 
holiday 
provision
Liabilities 
under Social 
Development 
Programme
Abandonment 
fund
2009
Total
$’000
Balance at 1 January 2009 200 6,952 1,565 8,717
Increase in provision 1,204 2,766 580 4,550
Paid in year – (3,719) – (3,719)
Unwinding of discount – 164 70 234
Foreign exchange difference (21) – (188) (209)
Disposal of subsidiary (113) (1,294) (229) (1,636)
Addition of joint venture 34 387 70 491
Balance at 31 December 2009 1,304 5,256 1,868 8,428
Non-current provisions – 1,650 1,868 3,518
Current provisions 1,304 3,606 – 4,910
Balance at 31 December 2009 1,304 5,256 1,868 8,428
Group only
Employee 
holiday 
provision
Liabilities 
under Social 
Development 
Programme
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 15)
(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
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Roxi Petroleum plc Annual Report and Accounts 2010 56
Notes to the Financial Statements continued
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 is until 2012 and the exploration period is 5 years.
In accordance with the terms of the contract Beibars Munai LLP has 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$1,000,000* to the development of Astana City during the second year of the contact term;
•	 Investing US$1,000,000* 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 programme in 2009 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 programmes above.
b) Ravninnoe Oil LLP
During 2004 Ravninnoe Oil LLP, a joint venture from 13 July 2009 (previously subsidiary undertaking), and the Ministry 
of Energy and Mineral Resources of the Republic of Kazakhstan signed the Contract for oil exploration and production 
of hydrocarbons at a deposit located in Atyrauskaya oblast (Contract #1401). The contract term is until 2029 and the 
exploration period is 7 years.
From 13 July 2009 the Group’s interest in Ravninnoe Oil LLP was reduced to 30% and has been consolidated using the 
proportional consolidation method, as described in note 16.
In accordance with the terms of the contract and addendums Ravninnoe Oil LLP has committed to the following:
•	 Investing not less that 1% of total investments in professional training of Kazakhstani personnel engaged in work 
under the contract;
•	 Investing US$300,000 to the development of Astana City during the exploration period;
•	 Investing US$300,000* over the exploration period in the social development in the region; 
•	 Executing a minimum work programme of US$17,350,000 over the first 3 years of the exploration period;
•	 Executing a minimum work programme of US$14,644,400 over the initial 2 year extension period;
•	 Executing a minimum work programme of US$25,600,000 over the second 2 year extension period; and
•	 Transferring 1% of production investment to a liquidation fund through a special deposit account in a bank located 
within the Republic of Kazakhstan. 
On making a Commercial Discovery (the SSUC defines a Commercial Discovery as the discovery within the contract area 
of one or several fields that are commercially suitable for production), US$11,538,728 shall be paid by Ravninnoe Oil LLP 
in respect of historical costs, to the authorities. The amount payable will be recalculated by the authorities to take into 
account any relinquished portion of the contract area. No amounts have been recognised in the financial statements in 
respect of this as at 31 December 2009. 
On 16 April 2011 Ravninnoe Oil LLP will start applying to the production phase. This process will take approximately  
9 months within which Minimal work program for the whole production period will be approved by the Ministry of Oil and 
Gas (formerly Ministry of Energy and Mineral Resources).
* Unpaid amounts in respect of the above social obligations are included within liabilities for social programs above.
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57 Roxi Petroleum plc Annual Report and Accounts 2010
c) 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 exploration and extraction of hydrocarbons on Munaily deposit located in Atyrau region.
The contract is valid for 25 years: exploration period of 3 years, production – 22 years. Based on Addendum #3 dated  
4 March, 2008 the exploration period was further extended for 2 years – up until 31 January 2010. Currently the Group is 
in the process of receiving approval for the commercial production phase. Minimal work programme for the production 
period has not been approved by the Ministry of Oil and Gas yet.
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 programme;
•	 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; and
•	 If Munaily Kazakhstan LLP progresses to the production phase it is obliged within 90 days to enter into 
Additional Agreement to the Contract which will determine the payment of the remaining historic costs for the 
amount of US$1,580,000. No amounts have been recognised in the financial statements in respect of this as at 
31 December 2009.
*Unpaid amounts in respect of the above social obligations are included within liabilities for social programmes above.
d) 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 No1 dated  
17 April 2008, contract area was increased. The contract is valid for 4 years and expires on 7 June, 2011. Addendum  
No 2 dated 19 February 2009 agreed the minimum work programme to be carried out. 
In accordance with the terms of the contract and addendums, BNG Ltd LLP remains committed to the following:
•	 Investing US$5,000,000* over the exploration period in the social development in the region;
•	 If a production license is granted a further US$2,500,000 should be invested in the social development of the region;
•	 To fund minimum work programme during the exploration period of US$64,600,000;
•	 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 programmes above.
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Roxi Petroleum plc Annual Report and Accounts 2010 58
Notes to the Financial Statements continued
e) 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.
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 during the extension to the Kyzyl-Orda 
Contract under Annex No 2;
•	 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$130,000 by providing financial and bank guarantees;
•	 To pay royalties of 2% of hydrocarbons volume produced in the event of test production of hydrocarbons under the 
Kyzyl-Orda Contract; and
•	 To fund a minimum work programme of US$23,154,000.
On 16 February 2011 the exploration contract of Galaz and Company LLP was granted an extension of two years to  
14 May 2013, see note 32.3. Minimal work programme for the extension period has not been approved yet.
* Unpaid amounts in respect of the above social obligations are included within liabilities for social programme above.
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59 Roxi Petroleum plc Annual Report and Accounts 2010
26 Borrowings
 The non-current borrowings are non interest bearing and are due to the following:  
 Group
2010
$’000
Company
2010
$’000
Group
2009
$’000
Company 
2009
$’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) 20,378 – – –
Other payables – – 1,637 –
27,818 – 1,637 –
(a) The amount represents 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, as at 31 December 2010.
(b) The loan due to Canamens represents 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, as at 31 December 2010.
(c) The loan due to LGI represents the Group’s debts owed by Galaz and Company LLP to LGI, as a result of its planned 
acquisition of 40% interest in Galaz and Company LLP, as at 31 December 2010.
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Roxi Petroleum plc Annual Report and Accounts 2010 60
Notes to the Financial Statements continued
27 Deferred tax
Deferred tax liabilities comprise:
  Group 
2010
$’000
 Group
2009 
$’000
Deferred tax on exploration and evaluation assets acquired 8,725 20,010
8,725 20,010
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 these fair value uplifts are depleted or impaired.
The movement on deferred tax liabilities was as follows:
 Group 
2010 
$’000
Group 
2009 
$’000
At beginning of the period 20,010 30,513
Foreign exchange 50 (6,065)
Increase in tax rate 1,687 –
Disposal of subsidiary (15,052) (4,977)
Recognition of joint venture 3,524 1,493
Impairment of oil and gas asset (1,494) (954)
 8,725 20,010
The increase of deferred tax liability mainly relates to changes in future tax rates, and represents the Directors’ best 
estimate of future tax rates in Kazakhstan of 20% (see note 9).
The Group also has accumulated estimated tax losses of approximately US$27,000,000 (2009: US$29,000,000) available 
to carry forward and offset against future profits. This represents an unprovided deferred tax asset of approximately 
US$6,000,000 (2009: US$4,700,000).
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 2009
31,289,676 53
Granted 7,578,550 26
Expired (1,792,693) 65
As at 31 December 2009 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
There were 18,901,956 (2009: 26,255,329) share options exercisable at the end of the year with a weighted average 
exercise price of 45p (2009: 42p).
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61 Roxi Petroleum plc Annual Report and Accounts 2010
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 2008 31,289,676 – – 31,289,676 53
Directors 6,909,418 – (5,012,853) 28,435,197 46
14 August 2019 
and  
1 October 2019
Employees  
and others 669,132 (1,792,693) 5,012,853 8,640,336 54
14 August 2019 
and 28 
September 2019
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 –
  
The range of exercise prices of share options outstanding at the year end is 12p – 65p (2009: 12p – 65p). The weighted 
average remaining contractual life of share options outstanding at the end of the year is 7.51 years (2009: 8.21 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:
2010 2009
Expected volatility (%) 80 80
Expected life (periods) 5 5
Risk-free rate (%) 2.84 2.51-2.84
Fair value per option (p) 4-6 2.8-6.6
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Roxi Petroleum plc Annual Report and Accounts 2010 62
Notes to the Financial Statements continued
29 Warrants issued
Following table summarises the warrant transactions during the year:
Number $’000
Description Grant Exercised
Year  
End Grant Exercised
Income 
Statement
Year  
End
Expiry 
date
GEM Global Yield 
Fund Limited
 1
– – 9,000,000 – – 335 309
26 May 
2014
Altius Energy
 2
56,335 3,600,000 29,323,835 – 92 871 23
31 March
2011
56,335 3,600,000 38,323,835 – 92 1,206 332
 
1. The Company entered into a £15,000,000 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 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$1,106,000 and have been re-valued at the year end to US$309,000  
(2009: US$644,000) 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. Kuat Oraziman agreed to subordinate $14,550,000 of loans made to the Group to the US$5,000,000 loan entered into with Altius Energy Limited. 
US$10,000,000 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$2,953,000. This amount has reduced the fair value of US$10,000,000 loan to Galaz Energy BV (Note 23). On 29 June 2009 Kuat Oraziman 
transferred his 36,000,000 warrants to Altius Energy Limited. During the year 3,600,000 warrants were exercised (2009: 3,132,500). Also pursuant to 
the terms of the deeds of warrant 56,335 additional warrants were issued during the year. At the year end the outstanding warrants were revalued to 
US$23,000 (2009: US$986,000) 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. 
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. 
The total number of warrants that remained outstanding at the year end was 45,823,835 (2009: 51,890,612).
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63 Roxi Petroleum plc Annual Report and Accounts 2010
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  
2010  
$’000
Company  
2010  
$’000
Group  
2009 
$’000
Company  
2009  
$’000
 Loans and receivables
InterCompany receivables – 8,387 – 23,027
Amounts due from joint venture 33,314  2,378 7,515 6,600
Other receivables – current* 9,932  190 4,399 43
Other receivables – non-current 12,990  1 14,421 24
Cash and cash equivalents 4,959  2,194 3,950 983
 61,195 13,150 30,285 30,677
* This amount includes assets in disposal group classified as held for sale
As at 31 December 2010 the carrying value of available for sale financial assets for the Group and Company was US$ nil 
(2009: Group and Company US$1,106,000). This is described in notes 7 and 29.    
Financial liabilities
Group  
2010  
$’000
Company  
2010  
$’000
Group  
2009 
$’000
Company  
2009  
$’000
 Financial liabilities at amortised cost
Trade and other payables* 13,667  11,697 13,737 6,669
Other payables – non-current 1,019 – 1,296 –
Borrowings – current 14,009  4,460 22,267 8,434
Borrowings – non-current 27,818 – 1,637 –
Purchase consideration received in 
advance 14,213 – 19,221 –
 70,726  16,157 58,158 15,103
* This amount includes liabilities directly associated with assets in disposal group classified as held for sale
As at 31 December 2010 the carrying value of financial liabilities measured at fair value through profit and loss for the 
Group and Company was US$332,000 (2009: Group and Company US$1,630,000). These are described in note 29.
 
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Roxi Petroleum plc Annual Report and Accounts 2010 64
Notes to the Financial Statements continued
Fair value of financial assets and liabilities
At 31 December 2009 and 2010, 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 2010
Level 1
$000
Level 2 
$000
Level 3 
$000
Financial Asset – – –
Available for sale – – –
Financial Liability – – 332
Warrant liability – – 332
Group and Company
Fair value measurements at 31 December 2009
Level 1
$000
Level 2 
$000
Level 3 
$000
Financial Asset – – 1,106
Available for sale – – 1,106
Financial Liability – – 1,630
Warrant liability – – 1,630
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 situation.
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. 
During 2010 and 2009 the movement in Group and Company’s financial assets and liabilities was as follows:
Financial Asset
2010 
$’000
2009
 $’000
Balance at the beginning of the year 1,106 –
Additions – 1,106
Change in value taken to the Income Statement (1,106) –
Balance at 31 December – 1,106
Financial Liability
2010 
$’000
2009 
$’000
Balance at the beginning of the year 1,630 –
Additions – 5,794
Exercise of warrant taken to Retained Earnings (92) (749)
Change in value taken to the Income Statement (1,206) (3,415)
 Balance at 31 December 332 1,630
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65 Roxi Petroleum plc Annual Report and Accounts 2010
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.
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 mainly settled 
in January 2011 as disclosed in note 32. 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$378,000 
(2009: US$136,000).
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.
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Roxi Petroleum plc Annual Report and Accounts 2010 66
Notes to the Financial Statements continued
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.
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, Kuat Oraziman, had a beneficial interest in 42.5% (currently 62.88%) of the issued capital 
of Baverstock GmbH (“Baverstock”) and was (and remains) a Director of and holds 50% of the issued share capital of 
both Vertom International N.V. (“Vertom”) and Vertom International BV.
•	 Dae Han New Pharm Co Limited (“Dae Han”) had a beneficial interest in 17 per cent of the issued share capital of 
Baverstock (currently 25.15%). 
As a result of the Eragon Acquisition, the Group entered into related party transactions which include but are not limited 
to the following transactions:
a)  Consulting Services Agreement
On 30 January 2008, the Company entered into a consulting service agreement with Vertom. Pursuant to this agreement, 
the Company allotted 46,153,846 ordinary shares in the Company to Vertom following the extension to the contract area 
of the BNG SSUC, on 7 May 2009. 
31.2 Loan agreements 
a)  Loan from Kuat (as at the date of the Eragon Acquisition)
 At the date of the Eragon Acquisition, in Galaz Energy BV there was a US$10,000,000 loan borrowed from Kuat 
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$5,000,000 remained payable from the Group, and has 
been classified within short-term borrowings (note 24). 
 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 (see note19).
 In August 2010 Galaz Energy BV has provided Baverstock with a loan facility of up to US$10,000,000 at LIBOR +7%. 
The amounts borrowed under this loan agreement should be used exclusively for repayment of Kuat Oraziman’s 
US$10,000,000 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$5,000,000 under the facility agreement was 
transferred to Kuat Oraziman directly by Galaz Energy BV to be repaid by Baverstock. 
b) Other loans from Kuat Oraziman 
 In January 2010, Altius Energy provided a loan of US$3,000,000 to the Company. In order to repay the loan of 
US$3,000,000 on time, the Group entered into a loan arrangement with Kuat Oraziman on 19 March 2010 for 
US$3,000,000 which was lent on an interest free basis to Galaz and Company LLP and used to repay the above 
disclosed Altius Energy convertible loan. The loan was repaid to Kuat Oraziman on 12 May 2010.
 The Company has another loan outstanding as at 31 December 2010 and 2009 with Kuat Oraziman, details of which 
have been summarised in Note 24. 
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67 Roxi Petroleum plc Annual Report and Accounts 2010
c) Vertom loan to Ravninnoe Oil LLP 
 At the date of acquisition (16 May 2007) of Ravninnoe BV and its then 50% subsidiary Ravninnoe Oil LLP there was 
a loan US$7,500,000 due from Ravninnoe Oil LLP to Vertom International BV under a loan agreement dated 11 May 
2007. No repayments have been made in respect of this loan agreement to date.
 On 24 June 2009, pursuant to the amended sale and purchase agreement made between the Company, Ravninnoe 
B.V., Kuat Oraziman, Vertom and Canamens as described in note 16, Ravninnoe Oil LLP agreed to the assignment 
by Vertom to Canamens of 26.2% of the loan receivable of US$7,500,000 and that the loan would be repayable on a 
joint demand by Canamens and Vertom.
d) Transactions with Canamens
 As part of the 2 joint ventures entered into by the Group with Canamens in relation to Ravninnoe Oil LLP and BNG 
Ltd LLP, details of which are set out in Note 16, various loans were entered into:
i) Ravninnoe Farm-in
As disclosed in notes 16 and 31.2 the Group has entered into and completed a farm-in with Canamens in respect 
of Ravninnoe Oil LLP. 
ii) BNG Farm-in 
As disclosed in note 16 the Group has entered into and completed a two stage farm in with Canamens Energy 
BV in respect of BNG Ltd LLP. 
e) Loans in relation to LGI 
 As described in notes 26 and 32.2 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.
31.3 The Inter-Conditional Agreement
In January 2009, the Company announced a proposed farm-out with Canamens whereby the Company and Baverstock 
together would sell 35% of the BNG Contract area to Canamens in return for a commitment to fund some of the BNG 
Contract area work programme costs. The proposed transaction was subsequently amended and it was agreed 
between the Company and Baverstock that the Company would solely sell in 2 stages 35% of the Company’s 58.41% 
interest in BNG Ltd LLP to Canamens. Details of the transaction are set out in note 16. 
In return for Baverstock retaining its 40.59% interest in the BNG Contract area, the Company, Baverstock, the beneficial 
owners of Baverstock including Kuat Oraziman, Eragon Petroleum Limited, Galaz Energy BV and BNG Energy BV 
entered into an Inter-Conditional Agreement in October 2009 whereby. Baverstock agreed that the remaining work 
programme funding from the original US$100 million funding commitment made by the Company to Baverstock at the 
time of the Eragon Acquisition will be US$8.4 million. 
Further, the Inter-Conditional Agreement restates that Baverstock and (where applicable) the beneficial owners of 
Baverstock continue to be bound by the operative provisions of the various agreements entered into at the time of the 
Eragon Acquisition including the Baverstock Indemnity referred to in note 31.2 above.
The Inter-Conditional Agreement also deals with the proceeds of sale received from Canamens and the distribution of the 
loans. Under this agreement, the Company and Baverstock agreed that the proceeds of the sale would be to the benefit 
of the Company, in return for Baverstock retaining its effective interest in BNG Ltd LLP. This results in the Company 
ultimately benefiting from 65% of the funds to be invested into BNG Ltd LLP by Canamens. 
31.4  Key management remuneration
Key management comprises the Directors and details of their remuneration are set out in note 6. 
In September 2008 the Directors and senior management agreed to deferral of their salaries and fees until such time that 
the restatement and the refund would not materially affect the Company’s ability to continue to comply with existing work 
programme commitments. This policy continued throughout 2009 and 2010.
As at 31 December 2010, the amount due to the Directors in respect of this deferral was approximately US$ 60,000 
(2009-US$ 294,000).
32 Events after the reporting period 
32.1 BNG change in ownership 
On 3 March 2011 Canamens BNG BV has informed the Group that it will not make the final payments of US$11.9 million 
under the second stage of the sale and purchase agreement in connection with BNG Ltd LLP. As a consequence under 
the terms of the SPA, Canamens will forfeit approximately a 6.23 per cent interest in the BNG Contract Area to the Group.
RXP2635 - AR10 BACK AW11.indd   67 20/05/2011   16:49 Financial Statements
Roxi Petroleum plc Annual Report and Accounts 2010 68
Notes to the Financial Statements continued
As a result, Group’s interest in the BNG Contract Area increased from 23.41 per cent to 29.64 per cent and Canamens 
holding decreased from 35 per cent to 28.77 per cent, subject to receipt of the necessary government waivers under 
Kazakh law. 
32.2 Galaz SPA
(a) LGI Farm-in
On 27 April 2010 Galaz Energy BV entered into a SPA with LG International Corp (“LGI”) for the sale of 40% of the 
equity in Galaz and Company LLP for US$15.6 million. 
As part of this transaction LGI agreed to provide a loan of US$34.4 million to Galaz and Company LLP. Under the 
terms of the loan agreement the first tranche of US$20 million was applied as follows:
(i) US$8.5 million for the repayment of historical debt associated with drilling wells in the North West Konys field;
(ii) US$8.4 million for the partial refinancing of loans due to the Company and general corporate purposes, and
(iii) US$3.1 million for financing the ongoing operational costs.
The second tranche of the loan is to be used for investment for ongoing development costs under the current work 
programme.
On 12 May 2010 the first tranche of US$20 million under the loan agreement was received as an advance by Galaz and 
Company LLP.
The sale of 40% of the equity in Galaz and Company LLP was finalised on 20 January 2011. 
32.3 Galaz area and contract extension
On 10 January 2011 the Ministry of Oil and Gas extended the contract territory under exploration of Galaz and Company LLP . 
On 16 February 2011 the Ministry of Oil and Gas extended the exploration contract of Galaz and Company LLP for two 
more years up to 14 May 2013. 
32.4 Warrants expired
On 31 March 2011 29,323,835 warrants issued to Altius Energy had not been exercised and expired.
32.5 Options issued to Directors
The Company issued a further 11,540,000 options to the Company Directors as disclosed in the Remuneration report 
to these consolidated financial statements and 1,550,000 options to other employees on 12 January 2011 at an exercise 
price of 13p.
The Company issued a further 100,000 options to an employee, in accordance with the terms of the employee’s service 
contract, on 1 May 2011 at an exercise price of 13p.
32.6 Loans due to Kuat Oraziman
The repayment dates for the loans of US$4,550,000 and US$5,000,000 due to Kuat Oraziman described in Note 24, 
were amended and agreed between parties on 26 April 2011 to be extended from July 2011 to July 2012. Also the loan of 
US$4,550,000 was changed from non-interest bearing to interest bearing with an annual rate of 12%. 
32.7 Loan due to Vertom International NV
The group entered into a two year unsecured loan facility agreement with Vertom International NV on 26 April 2011, 
whereby Vertom International NV agreed to lend up to US$6 million to the Group with an associated interest of12% per 
annum. The loan will be repaid out of the proceeds from subsequent farm-out arrangements or from first production from 
its operating assets.
32.8 Cancellation of Deal with Canamens on BNG
On 10 May 2011 the Company came to an agreement with Canamens to cancel the SPA referred to in Note 16, whereby 
the 35% interest previously held by Canamens BV in BNG LLP will be returned to BNG Energy BV. This agreement was 
reached as a result of Canamen’s decision not to comply fully with the terms of the original SPA and decided that it was 
in their strategic interests, as well as that of Roxi’s, to terminate the deal. Canamens also agreed to novate its loans of 
US$23.6 million to BNG Energy BV in return for Roxi providing a commitment to pay a royalty of 1.5% of gross revenue 
from production on the BNG license area going forward.
RXP2635 - AR10 BACK AW11.indd   68 20/05/2011   16:49 Roxi Petroleum was admitted to trading on London’s AIM market 
on 22 May 2007 with the intent to acquire controlling interests in 
and develop oil and gas assets in Central Asia. Roxi’s strategy is 
to target oil discoveries and mature exploration acreage, which 
have reserves and production upside. 
01 Highlights
02 Year in Review
02 Operations
07 Glossary
08 Timeline
10 Business Review
10 Chairman’s Statement
12 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 
Cashﬂ ow Statements
31 Notes to the Financial Statements
69 Company Information
uralsk
Atyrau
Aktobe
Aktau
Kyzylorda
Shymkent
taraz
Almaty
Karaganda
AStANA
Pavalodar
ust Kamenogorsk
Galaz
Beibars
BNG
munaily
Contract Areas
City
Key
Contents
Company Information
Directors
Mr C Carver
(Non-Executive Chairman)
Mr D Wilkes 
(Chief Executive Ofﬁ cer)
Mr J Hyunsik 
(Chief Operating Ofﬁ cer)
Mr K Oraziman
(Executive Director)
Mr E Limerick 
(Non-Executive Director)
Company Secretary 
London Registrars plc
Registered Ofﬁ ce and 
Business Address 
4th Floor
Haines House
21 John Street
London 
WC1N 2BP
Company Number 
5966431
Nominated Adviser and Broker
Matrix Corporate Capital LLP
1 Vine Street
London, 
W1J 0AH
Solicitors 
McCarthy Tetrault
5 Old Bailey
2nd ﬂ oor
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
Huddersﬁ eld
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
Company Information
RXP2635 - Cover AW02.indd   2 20/05/2011   17:09 Growth through partnership
Annual Report and Accounts 2010
Almaty office
7th Floor
152a Karasai Batyra Street
050026 Almaty
Kazakhstan
UK office
21 John Street 
London 
WC1N 2BP
Website
www.roxipetroleum.com
Roxi Pet RoL eum PLC Annual Report and Accounts 2010
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