transition to production
roxi petroleum plc
annual report and accounts 2011
annual report and accounts 2011
registered office and 
business address 
4th floor 
haines house 
21 john street 
london  
wc1n 2bp about roxi
roxi has interests in four oil assets in kazakhstan one has 
already commenced production and production from another two 
is expected later in the year
between now and the end of the year a further two deep wells 
and four shallow wells are planned
bng 
2 
operating wells
beibars 
167km
2
 
exploration acreage
galaz 
4 
operating wells
uralsk
atyrau
kyzylorda
shymkent
taraz
almaty
karaganda
astana
pavalodar
ust kamenogorsk
munaily 
1 
operating well
 city
 exploration
 discovery
 production
01 highlights
02 year in review
02 review of operations
05 glossary
06 timeline
08 business review
08 chairman’s statement
10 chief executive’s statement
14 governance
14 board of directors
16 directors’ report and business review
20 remuneration committee report
23 report on corporate governance
24 financial statements
24 independent auditors’ report
25 consolidated income statement
26 consolidated statement of comprehensive income
27 consolidated statement of changes in equity
28 parent company statement of changes in equity
29 consolidated and parent company statement  
of financial position
30 consolidated and parent company  
cashflow statements
31 notes to the financial statements
68 company information
roxi petroleum plc 
annual report and accounts 2011 69
business review year in review highlights
roxi petroleum plc 
annual report and accounts 2011
governance company information financial statements roxi now
6
1
2
3
4
5
value 
creation
roxi petroleum plc 
annual report and accounts 2011 01
business review year in review governance financial statements company information highlights
highlights
2011
•	 loss after taxation of us  94 million
•	 completion of us  50 million galaz farmout with lgi
•	 cancellation of deal with canamens resulting in return  
of 35 effective interest in bng llp to roxi
•	 us  236 million of loans previously due to canamens 
being novated to roxi in exchange for 15 royalty 
payable by roxi to canamens based on future 
production from bng llp
2012 to date
•	 signing of us  30 million bng farmout with knoc
•	 vertom loan facility increased to us  7 million loan 
•	 first oil production revenues as pilot production 
commences on galaz
2011
•	 extension of licence area of galaz granted
•	 nw konys galaz licence extended for 2 years to may 2013
•	 airshagil bng licence extended for 2 years to june 2013
•	 completion of nw konys reservoir study galaz
•	 initial time processing of 1400 km
2
 3d seismic cube 
completed on bng
•	 37 prospects and leads mapped at depths of 1700m to 
5000m on bng contract area 
•	 gaffney cline completed technical audit of 202 mmbbls 
risked resources on bng and 13 mmbbls of mostlikely 
contingent resources on south yelemes
•	 well 136 drilled on north yelemes to 2900m pending 
testing and evaluation
•	 wells nk9 and nk10 drilled on nw konys to 1500m
•	 pilot production licenses and emissions licences granted 
for south yelemes and nw konys 
2012 to date
•	 preparation tendering and construction of facilities at nw 
konys and south yelemes to commence pilot production
•	 well nk6 commences pilot production on nw konys 
galaz at an average production rate of 155 bpd
•	 spud nk7 well on galaz
financial highlights operational highlights
1
  acquisiton of exploration acreage
2
  
ipo  farm out
3
  
exploration
4
  
reserves discovery
5
  
production – domestic sales
6
  
production – export sales
develop reserves base roxi petroleum plc 
annual report and accounts 2011 02
2  
operating wells
5841  
roxi interest
1561km
2  
area
1376km
2
  
seismic coverage
review of operations
bng contract area south precaspian basin western kazakhistan
lwr cretaceous
primary reservoir target bng prospects and leads
lwr permian kung
triassic
lwr permian artasset
mid carboniferous karst
mid carb basinal
jurassic
bng contract area is located in the west of kazakhstan 40 
kilometres southeast of tengiz on the edge of the 
mangistau oblast covering an area of 1561 square 
kilometres roxi resumed full control of bng ltd llp in the 
second quarter of 2011 after the announcement of 
canamen’s withdrawal from the contract this caused a 
temporary delay to operations while bng was reorganized 
following the departure of canamen’s staff following this 
a significant effort was made by roxi to find new farmin 
partners in the second half of the year
in january 2011 roxi had commissioned gaffney cline and 
associates gca to undertake an independent audit of the 
prospects identified by the company on the 2009 and 2010 
1500 square kilometres 3d seismic acquisition a large 
portfolio of 37 prospects and leads has been compiled by 
roxi with a combined gross resource potential of 900 million 
barrels audited by gca
the company has gained a good understanding of the 
regional geology from the extended 3d seismic acquisition 
and has identified several significant exploration plays on the 
block foremost are the prospects mapped in the lower 
permian along the margin of the south emba high these 
are direct analogues of neighbouring tolkyn field which 
contains approximately 70 million barrels initial reserves it 
should be noted that the current poor production from 
tolkyn field is believed by the company to be due to 
reservoir management issues over the last 5 years rather 
than reservoir performance therefore the company 
understands that there is enormous potential in these 
carbonate targets and they can be drilled for a modest cost 
roxi has mapped one tolkyn type prospect which is ready 
to drill with two further leads available
the company has also identified a new exploration play in the 
middle carboniferous of the south emba subbasin multiple 
discreet carbonate fans have been mapped shed off the 
south emba high these reservoirs now sit at depths of 
4500m to 5800m and have been confirmed by soviet 
drilling to be hydrocarbon bearing key to drilling these 
targets will be the identification of sweet spots where porosity 
and permeability are well developed resource volumes of 
6080 million barrels are estimated in these prospects
a third play has been identified in deep devonian through 
to middle carboniferous carbonates in the north of the 
area the carbonates are a similar age to tengiz but in the 
form of small 1020 square kilometres fringing atoll ribbon 
reefs with tallus reef plays this type of exploration play 
has been speculated to exist on the southern flank of the 
guriyev arch for many years but has never been identified 
and imaged in detail
another interesting outcome from the 3d seismic was the 
detailed imaging of the karstified surface of the south emba 
high the seismic has revealed deeply buried sinkholes and 
potholes in the carbonate platform which are directly 
analogous to the bekbolat reservoir underlying tasym field a 
few kilometres from the block boundary six small structural 
prospects have been identified in close proximity which have 
most likely combined resources of 585 million barrels 
recoverable although requiring proven modern drilling 
techniques to successfully drill these reservoirs are 
potentially high productivity and represent attractive 
exploration targets 03
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
 exploration
 discovery
 production
galaz contract area turgai basin central kazakhstan
4  
operating wells
3422  
roxi interest
179km
2  
area
30km
2
  
seismic coverage
nw   konys
konys field
license 
extension
galaz block is located in the kyzylorda oblast in central 
kazakhstan the contract area was extended on 10 january 
2011 to 179 square kilometres and now includes significant 
exploration upside on the east side of the karatau fault 
system as well as the nw konys development
the year 2012 began with notification of approval of the nw 
konys pilot production plan from the ministry of oil and gas 
with emissions and flaring permits received from the 
authorities over the following 12 months during this period 
the company commissioned a reservoir study undertaken by 
schlumberger the report provided the company with a 
development strategy for the jurassic channel sands 
developing the southern channel first under aquifer support 
following the results of the study galaz completed the 
design approval and procurement procedures for 2 wells on 
the southern channel wells nk9 and nk10 were drilled in 
november and december of 2011 and well nk7 was spudded 
in april 2012 a further 3 appraisal wells are planned for 2012
final production consent was received at the end of 2011  
and the first well nk6 was put on production in january 2012 
the oil is currently sold domestically and delivered to 
neighbouring operator kam for processing and 
transportation however the pilot development plan will 
include infield storage and processing of the oil which is 
planned in 2013 
in the newly extended acreage galaz has identified a 
structural prospect on old 2d seismic along the east side of 
the karatau fault the company is preparing to shoot a high 
resolution 3d survey to map this complex structure and 
identify jurassic channel sands
bng contract area continued
operationally the company has now completed a fourwell 
programme to test jurassic targets in the north of the block  
well 135 was drilled in january and february 2011 to a depth 
of 2950m with the objective of testing multiple stacked 
reservoirs from the cretaceous and jurassic on a small 4 way 
dip closure the well encountered only shows and was 
plugged and abandoned after reevaluation of the seismic it 
was concluded that structure was in fact cut by minor faulting 
and was therefore breached this information will be used for 
the derisking of future jurassic and cretaceous prospects 
in december bng spudded well 136 to test middle jurassic 
and triassic sands in a newly mapped fracture play to the 
northwest of well 135 at the time of writing the well has 
been cased and suspended with oil shows for further 
evaluation in 2012
south yelemes is now in a position to commence pilot 
production from wells 54 and 805 at approximately 250 bopd 
the timing of this and of further pilot development of south 
yelemes will be decided after completion of the farmout roxi petroleum plc 
annual report and accounts 2011 04
review of operations continued
roxi acquired a 50 per cent interest in beibars munai 
llp in 2007 which operates the 167 square kilometre 
beibars contract area on the caspian shoreline south  
of the city of aktau while acquiring 3d seismic in  
2008 the contract was put into force majeure when  
the acreage was allocated as a military exercise area 
polygon by the ministry of defense since this time  
no operations have been carried out and roxi operates 
a care and maintenance administrative budget on  
the project
the company plans to resolve the access issue with the 
army in due course and then seek farmin partners to 
explore beibars contract area
caspian 
sea
imasha field
beibars contract area mangishlak basin western kazakhstan
millions of barrels
contract 
area
property 
gross 
roxi 
net interest
galaz proven 24 08 3422
probable 51 17 3422
possible 34 12 3422
bng contingent resourcesbest 127 74 5841
prospective resourcesbest 9040 5280 5841
total proven 24 08
probable 51 17
possible 34 12
contingent resources best 127 74
prospective resources best 9040 5280
hyunsik jang chief operating  
officer of roxi petroleum has 
reviewed and approved the 
technical disclosure in this 
announcement he holds a  
bsc in geology and has 26  
years international experience  
of exploration appraisal and 
development of oilfields in a  
variety of environments
reserves and resources summary table
qualified person
50  
roxi interest
munaily field is located in the atyrau oblast approximately  
70 kilometres southeast of the town of kulsary the field was 
discovered in the 1940s and produced from 12 reservoirs in  
the cretaceous through to the triassic roxi acquired a 5841 
per cent interest of the 067 square kilometre rehabilitation 
block in 2008 and funded two wells and one well reentry 
after the cancelled sale of munaily to bt corporation  
roxi resumed control of munaily in the fourth quarter 
2011 and started preparations for the necessary 
permitting and surface facilities to bring well h1 onto 
production in 2012 approval has been received from the 
ministry for munaily to enter the commercial production 
period of the contract once production has commenced 
from h1 four further wells are planned in 20122013 to 
develop the 12 million barrels of bypassed reserves 
currently estimated on the field
munaily contract area precaspian basin western kazakhstan
5841  
roxi interest 05
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
spe – the society of petroleum engineers
glossary
proved reserves
proved reserves are those quantities of petroleum which 
by analysis of geosciences and engineering data can be 
estimated with reasonable certainty to be commercially 
recoverable from a given date forward from known 
reservoirs and under defined economic conditions 
operating methods and government regulations if 
eterministic methods are used the term reasonable 
certainty is intended to express a high degree of 
confidence that the quantities will be recovered if 
probabilistic methods are used there should be at least a 
90 probability that the quantities actually recovered will 
equal or exceed the estimate
probable reserves
probable reserves are those additional reserves which 
analysis of geosciences and engineering data indicate are 
less likely to be recovered than proved reserves but more 
certain to be recovered than possible reserves it is 
equally likely that actual remaining quantities recovered will 
be greater than or less than the sum of the estimated 
proved plus probable reserves 2p in this context when 
probabilistic methods are used there should be at least a 
50 probability that the actual quantities recovered will 
equal or exceed the 2p estimate
contingent resources
contingent resources are those quantities of petroleum 
estimated as of a given date to be potentially recoverable 
from known accumulations but the applied projects 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 subclassified 
based on project maturity andor characterized by their 
economic status roxi petroleum plc 
annual report and accounts 2011 06
•	 project facility design for south 
yelemes approved
•	 announce interim half year results
•	 spud 1
st
 appraisal well on nw 
konys field
•	 water injection well on nw konys
timeline
•	 notification on the pilot production for galaz  
and bng received
•	 full consideration of us  156 million for the  
sale of 40 interest in galaz to lgi received
•	 well nk 20 shows oil encountered over  
three intervals
•	 successful amendment of bng work program 
for the period june 2007 to june 2011
•	 final approval from government authority to sell 
40 interest in galaz to lgi
•	 bng well 135 on north yelemes – dry hole
•	 confirmation of two year extension to ssuc  
for nw konys received
•	 confirmation of extension to ssuc 
for bng
•	 emissions permits granted for 
pilot production on nw konys
•	 start pilot production at nw konys
•	 canamens announced reduction 
in funding commitment
•	 90 day test production from  
bng well 805
•	 resource estimate for bng contractual 
area by gaffney cline  associates
•	 project facility design for south yelemes 
finished and sent to authority
•	 seek additional financing arrangements 
for bng
•	 annual general meeting
•	 water injection permit for galaz
january
february
july
august
march
april
may
september
june
october
•	 spud 2
nd
 appraisal well on nw  
konys field
•	 emissions permits granted for pilot 
production on south yelemes
•	 pilot production start up south 
yelemes field
•	 spud 3
rd
 appraisal well on nw 
konys field
•	 preparation for field facilities 
construction on galaz contract area
november
december
2011 07
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
•	 release interim financial report to 
30 june 2012
•	 bng commence drilling 2
nd
 deep 
exploratory well
•	 well results from two bng 
deep wells available
•	 bng commence drilling post 
salt well on southern area
•	 approval for gas flaring for the period 2012 to 
2014 for galaz received
•	 pilot production from the nw konys field  
achieved a rate of approximately 225 bopd
•	 galaz nk9 well test completion
•	 signed spa for bng farmout 
deal with knoc
•	 tendering for deep well drilling  
on bng
•	 galaz nk10 well testing
•	 galaz spudding nk7 well
•	 galaz drill 2 appraisal wells
•	 release annual report and accounts 
for 2011
•	 munaily drill production well
•	 bng 54 805 well work over
•	 hold annual general meeting in london
•	 galaz drill 1 exploration well
january and february
may
june
march
april
august
2012
•	 bng commence 1
st
 deep exploratory well
•	 bng 806 well test and evaluate
july
september and october
november and december roxi petroleum plc 
annual report and accounts 2011 08
chairman’s statement
the two fundamental issues at the start of 2011 were finding a 
replacement farmout partner at bng and securing the 
required regulatory consents to allow production at our three 
principal assets
bng farmout  related funding issues
as reported in the interim statement in may 2011 we 
negotiated the cancellation of the previous bng farmout 
arrangements with canamens nv following their decision  
to withdraw from kazakhstan this resulted at the interim 
stage in an accounting profit of some us  39 million a 
further us  10 million was credited to the profit  loss 
account following the completion of the us  50 million 
lg farmin at galaz
throughout 2011 we continued the planned development 
work at bng as using the unspent funding from canamens 
and then funding provided by mr oraziman a director of the 
company and its largest shareholder
consequently the short term debt to mr oraziman and 
companies associated with him rose to a level the independent 
directors considered unsustainable as a result we announced 
in late september 2011 with the agreement of mr oraziman 
and in consultation with the company’s nominated adviser 
strand hanson to convert some us  94 million of the short 
term debt into 188771895 new roxi shares
in march 2012 we announced that the korean national oil 
corporation “knoc” had agreed to become our partner at bng 
and had acquired a 35 per cent interest in the bng contract area 
for an initial consideration of us  5 million and a us  25 million 
contribution to the bng work programme ahead of the next 
planned contract area licence extension due in june 2013
we are delighted to be working with such a prestigious 
partner completion of the farmin is dependent inter alia 
upon the receipt of the required regulatory consents
regulatory consents
for several years the pace of development across our 
portfolio of assets was slower than we would have wished 
principally as a result of the delays in securing the required 
regulatory consents 
in this respect we are in the same position as other 
exploration and production companies operating in 
kazakhstan during the lengthy application process the 
regulatory framework was recast with new ministries and 
complex new laws were introduced
nevertheless in december 2011 we were awarded the final 
permissions which were the gas flaring permits for bng and 
galaz to allow drilling for pilot production drilling activities 
commenced at galaz in december 2011 and at bng in 
january 2012
despite a very cold winter in kazakhstan we have drilled  
three wells all of which are currently being evaluated we 
commenced pilot production at galaz in january 2012 and 
expect pilot production to commence at bng and full 
commercial production at munaily later in 2012
although the production levels are low having production  
at our three principal assets and having leading multi
national farmout partners at bng and galaz marks a 
transformation for roxi from a struggling exploration 
company at the beginning of 2011 to a company which  
we expect will produce at increasing rates as oil starts  
to flow from new wells
a fuller account of the development work at our assets and 
the terms of the knoc farmout at bng are contained in the 
chief executive’s statement on page 10
future strategy
given the company’s financial constraints the board does not 
believe now is the time to consider investing in new assets 
accordingly for the time being all our available resources will 
be focused on our current projects
roxi has signed farmout deals on its two principal assets 
bng and galaz its other asset capable of early production 
munaily already has a 15 year production license and will not 
require significant roxi input to develop production has 
already started at galaz and is expected at bng and munaily 
later in the year this is a position roxi’s board has been 
working towards for several years 
once the bng farmout has completed all the significant day 
to day operational regulatory and financial management 
activities at bng and galaz will be handled through the 
farmout vehicles supervised by our farmout partners roxi’s 
interests will be safeguarded by representation on the various 
joint operating committees and by its involvement and 
consent to all significant additional capital costs
the skill and resource base required to manage these assets 
as operator and to find negotiate and conclude farmout 
deals is not the same as that required to monitor 
developments as a junior farmout partner your board has 
therefore decided that roxi can and should for the time being 
be run on a much reduced cost basis
i am pleased to report that your company made very significant advances 
in 2011 and has continued to do so in the early months of 2012  09
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
members of the executive management team have agreed to 
take significant reductions in pay and there is underway a 
thorough review of all ongoing costs with a view to 
establishing a lean organisation capable of safeguarding 
roxi’s commercial interests but at an affordable cost
management changes
david wilkes has agreed with the board that he will transition 
his ceo responsibilities to mr oraziman the company’s 
largest shareholder and principal funder over the past few 
years who has been an executive director since 2008 and 
who will become ceo effective on 1 june 2012 david will 
remain with the company until september 2012 and during 
this period will transition his cfo responsibilities to myself 
who will become an executive chairman on 1 june 2012 
taking on at board level the financial management 
responsibilities with edmund limerick becoming the senior 
nonexecutive director david will then become a consultant  
to the company with effect from 1 october 2012
mr hyunsik jang will remain as chief operating officer  
taking the leading technical role in dealings with our farm 
in partners
david wilkes
i would like to take this opportunity to pay tribute to the 
excellent job david has done for roxi he joined the company 
in 2009 as chief financial officer and became chief executive 
officer at the start of 2010 retaining most of the 
responsibilities as cfo
david joined during a period of upheaval when companies 
such as roxi found investor appetite for early stage 
exploration companies had faded and new funding from 
traditional financial investors had dried up by that stage roxi 
was committed to develop its assets according to existing 
work programme commitments
he led the company through several rounds of necessary cost 
cutting which stabilised the expenditure but more importantly 
he led the company through the complex farmout 
negotiations on galaz and bng and then again at bng after 
canamens had decided to withdraw from kazakhstan
throughout this period david had to contend with significant 
structural changes to method regulation of the oil  gas 
industry in kazakhstan and to changes to the tax 
environment david displayed an exemplary professional 
approach in dealing with the issues at hand during what have 
been arguably the most difficult three years of roxi’s brief 
existence the company is now in a far stronger position than 
when he first joined it and should be justifiably proud of his 
achievements i am also very pleased that david will continue 
as a consultant to the company going forward
employees
as in previous years i would like to thank our employees for 
their sustained hard work and commitment during what have 
been difficult times
outlook
as a result of the successes noted above i believe we are  
in a stronger position now than we have been at any time  
over the past few years clearly our future success depends 
on achieving further operational success however as 
production increases across our asset portfolio our funding 
options should widen
we will look to leverage on the operational and financial 
strengths of our farmout partners knoc and lgi to increase 
shareholder value and to report further operational successes 
as they arise
clive carver
chairman
8 may 2012 10
roxi petroleum plc 
annual report and accounts 2011
chief executive’s statement
update
roxi’s effective interest in the following assets was as follows
asset
interest at  
1 january 
2011
interest at  
31 december 
2011
bng ltd llp 2341 5841
galaz and company llp 5782 3422
munailly kazakhstan llp 5841 5841
beibars munai llp 50 50
we are very close now to achieving our primary goal of 
transitioning three of our assets into production galaz was 
our first asset to commence production in january 2012 the 
revenue from future production will help finance the ongoing 
fixed costs as well as contribute towards the development 
costs of each of the assets going forward this represents  
a significant milestone for roxi and will significantly  
reduce the financial risks associated with being a purely 
exploration company during a period of volatility within  
world financial markets 
bng
we faced some challenges on bng during 2011 with our 
partner canamens deciding to withdraw from kazakhstan  
and its participation in bng having invested approximately  
us  38 million into exploring one of the smaller prospects on 
the bng acreage south yelemes canamens departure in the 
first quarter 2011 resulted in roxi’s effective interest in bng 
increasing from 2341 per cent to 5841 per cent yet at the 
same time it left us with a shortfall in funding for bng for 
2011 roxi sought additional short term funding from one of 
its shareholders vertom international bv to continue with the 
exploration and development of yelemes until such time that 
we secured an additional farmin partner for bng
in march 2012 we agreed terms on the farmout of a 35 per 
cent interest in the bng license to a subsidiary of the korean 
national oil company “knoc” the deal encompasses  
us  30 million being invested of which us  5 million will  
be paid to bng llp the current operator of the airshagil 
license and subsidiary of roxi with a further us  25 million 
funding being provided to finance the current license 
obligations including the drilling of two deep pre salt back 
to back wells on the license area at the same time knoc 
will enter into an option and pledge agreement over 32 per 
cent of the interest in galaz ‘the galaz interest” knoc will 
have the option to elect to transfer its interest from 35 per 
cent of bng to 32 per cent of galaz but only after fulfilling 
its funding obligation towards the bng work obligation 
should knoc elect to exercise their option for the galaz 
interest there will be an associated option price of us  5 
million that will have to be paid as consideration to galaz 
energy bv a subsidiary of roxi 
this represents a significant deal for roxi and we welcome 
knoc as partners to this strategic project for us knoc will 
be appointed as operator over our joint interest in the bng 
contract area this farmin arrangement will enable us to 
explore some of the deeper prospects within the bng 
territory where we believe the greater potential and value 
exists for our shareholders
bng engaged gaffney cline  associates “gca” to 
undertake a technical audit of the bng license area and 
subsequently pgs to undertake depth migration work 
based on the 3d seismic work carried out in 2009 and 
2010 the work of gca resulted in confirming total unrisked 
resources of 900 million barrels from 37 prospects and 
leads mapped from the 3d seismic work undertaken in 
2009 and 2010 the report of gca also confirmed risked 
resources of 202 million barrels as well as mostlikely 
contingent resources of 13 million barrels on south 
yelemes the depth migration work that was carried out by 
pgs enables bng to gain a greater understanding of some  
of the deeper prospects yet to be explored bng now 
plans together with its new partner knoc to drill two 
presalt wells into the deeper horizons as part of its  
current work obligation where we believe the greater 
potential in bng exists
bng recently received the necessary licences to permit pilot 
production to commence and is now in the process of putting 
facilities in place to recommence production from wells 54 
we have now achieved the transition from exploration to 
production and along with our new partners lgi and knoc  
are looking forward to developing our core assets to bring 
further value to our shareholders 11
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
and 805 that discovered oil on south yelemes in 2010 both 
these wells were drilled and tested before being shut in 
pending receipt of the required licenses to commence pilot 
production the wells previously flowed at 70 and 140 bopd 
during the period of test production in february 2012 bng 
completed the drilling of well 136 to a test depth of 3008 
metres and completed the wire logging oil shows were 
encountered between 2442 and 3008 metres the evaluation 
and testing of well 136 and the commencement of pilot 
production on south yelemes will be completed by our  
new operator for bng knoc
galaz
as a result of the completion of the farmout deal with lg 
international “lgi” in the first quarter 2011 our effective 
interest in galaz reduced from 5782 per cent to 3422 per 
cent with lgi obtaining a 40 per cent interest in galaz in 
return for a us  50 million deal comprising a combination  
of assigned debt future funding and purchase consideration 
to roxi secondly lgi completed a reservoir study with 
schlumberger and have since developed a drilling program 
that will prioritise drilling appraisal and exploratory wells to 
enable further reserves to transition from p2 to p1 
classification the first two of the planned new appraisal wells 
were drilled in december 2011 to a depth of 1500 metres 
although the results from testing these two wells were 
disappointing it did provide some useful information on the 
reserves in place on nw konys we have recently spudded 
well nk 7 in the north channel and we are expecting that this 
will bring more positive news for galaz
galaz also received all licenses necessary to permit pilot 
production to commence enabling galaz to put well nk6 
into production in january 2012 average production from this 
well has been 155 bopd to date this well was one of five wells 
drilled in 2009 when oil was first discovered on nw konys 
oil production is currently being transported to one of our 
neighbouring fields where it is sold at domestic oil prices until 
such time as production increases to levels sufficient to export 
other assets
roxi’s other assets comprise interests in beibars 50 per cent 
and munaily 5841 per cent at beibars the military polygon 
is still reserving use of the field for exercises we have applied 
for existing exploration license to be extended given that our 
ability to complete works at the territory have been impaired 
by the force majeure situation we plan to farmout part of our 
interest in beibars to an investor willing to fund the drilling of 
exploratory wells that will enable us to assess the potential of 
this asset once the military use has been removed
after a long period of negotiation on munaily roxi came to an 
agreement to cancel the sale of its interest to the previous 
buyer bt corporation this enabled roxi to retain its effective 
interest of 5841 per cent in munaily in return roxi agreed to 
return all funds paid by the former buyer including an amount 
for the cost of the well the buyer drilled on munaily in 2009 
roxi financed this by obtaining a loan of us  25 million from 
one of its shareholders radite nv this loan is secured against 
a 30 per cent interest in munaily munaily has a 15 year 
production licence in place and the company plans now to 
commence production from its well h1 after installing facilities 
in the field the well previously flowed at 80 bopd during its test 
production phase in addition the company plans to drill a 
further 4 production wells over the next two years 
financing arrangements
we faced some difficult challenges in 2011 to fund the 
ongoing work programme on bng with our partner canamens 
taking the decision to exit operations from kazakhstan early 
in the year with no external institutional debt on the balance 
sheet we were able to negotiate a series of short term funding 
arrangements with our principal shareholder including 
converting some of his existing debt to equity to help 
navigate the business to a point where we could secure a new 
farmin partner for bng as well as ensuring we continued to 
meet our ongoing work obligations on this core asset this 
enabled us to commence the drilling of well 136 in the final 
quarter 2011 and start putting in place facilities to commence 
pilot production 12
roxi petroleum plc 
annual report and accounts 2011
these ongoing financing challenges have led the board to 
reconsider what further restructuring is needed to ensure the 
business is able to sustain its activity until production 
commences across all its assets the chairman has indicated 
in his report that the board plans to undertake management 
restructuring through a combination of changing roles or 
implementing pay cuts at this critical juncture for the 
company i fully support these changes as i believe they will 
enable the company to successfully transition to production 
and ensure a self financing business model is achieved 
in addition to these initiatives the recent us  30 million 
farmout of interest in bng to knoc will provide the 
additional financing needed for bng and its partner to 
complete the required work programme on the bng license 
for the period to june 2013 as well as meet some of the 
working capital needs of the group on 30 april 2012 roxi 
negotiated an increase in the loan facility arrangement with 
vertom international nv to us 7 million this will be used to 
finance the ongoing work obligations on galaz and munaily  
as well as the ongoing reduced working capital needs of the 
group these initiatives will permit the company to sustain  
its activities through the end of 2013
financial highlights
the consolidated income statement on page 25 still  
reflects the fact that we have historically been an exploration 
company with little commercial production to date the 
results have also been impacted by the fair value adjustments 
made on the farmout deals completed on bng with 
canamens and knoc as well as the cost of share based 
payments and ongoing administrative costs which resulting  
in a net loss of us  95 million being recognised during the 
period we continue to drive cost efficiencies into our 
corporate structure and whilst we expect our share of costs 
associated from our joint venture interest to increase as 
operations there develop overall we plan to reduce costs 
through further restructuring
our aim going forward as we move to production is to 
continue to work on cost reduction initiatives as well as to 
increase top line revenues as pilot production commences 
from three of our assets of which production has already 
commenced on galaz in january 2012
social programmes
under kazakh regulations part of our obligations under 
various work programmes on the assets in which we have an 
interest are paid in the form of contributions to local social 
programmes in 2011 roxi made significant contributions to 
•	 kyzylorda region social fund us  302500 galaz and
•	 mangistau regional social obligation fund us  33700 
bng
these contributions while mandatory help secure the good 
standing of the company with the local regional authorities 
and with centrally based regulators roxi is pleased to have 
assisted in the developments of these projects 
environmental
no significant environmental issues have arisen at any of the 
properties acquired to date compliance with environmental 
regulatory bodies is being managed from both the aktau and 
almaty offices
kazakhstan
kazakhstan continues to develop and is constantly amending 
its legal framework and tax legislation to achieve the right 
balance between the state and the need to encourage new 
investment into kazakhstan and from existing companies 
who conduct business in kazakhstan operating in 
kazakhstan in such times of evolution can from time  
to time present difficulties 
as a kazakh based operation with a majority of asian 
investors we believe we are ideally placed to deal with any 
issues as they arise and see this as a competitive advantage 
compared with some of the difficulties being encountered by 
other less integrated international companies
chief executive’s statement continued
the forthcoming drilling campaign to be undertaken on both galaz 
and bng will represent the next key milestone events for roxi 
which if successful could significantly improve roxi’s fortunes 13
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
outlook
with the restructuring initiatives in place and with the 
successful completion of the farmout of our bng interest  
to knoc this should bring more stability to roxi’s operations 
going forward the forthcoming drilling campaign to be 
undertaken on both galaz and bng will represent the next 
key milestone events for roxi which if successful could 
significantly improve roxi’s fortunes
finally i would like to thank my team at roxi for their 
commitment and loyalty to the organisation without which  
we could not have achieved our successes to date
david wilkes
chief executive officer
8 may 2012  14
roxi petroleum plc 
annual report and accounts 2011
board of directors and senior management
clive carver aged 51
nonexecutive chairman
clive carver qualified as a chartered 
accountant with coopers  lybrand in 
london in 1986 since then he has 
focused on the corporate finance and 
corporate broking arena including 
working for kleinwort benson and price 
waterhouse corporate finance
he spent five years at seymour 
pierce where he was a director and 
head of corporate finance and six 
years at williams de broë where he 
was head of corporate finance and 
corporate sales at williams de broë 
he led the team floating and fund 
raising for a number of natural 
resource companies until october 
2011 he was head of corporate 
finance and a founding shareholder 
at finncap a london based financial 
advisor and broker he is non
executive chairman of lochard 
energy plc and of x cap securitis 
plc a londonbased stockbroker
david wilkes aged 49
director and chief executive officer
david joined the board of roxi on  
1 october 2009 from ernst  young 
where he was a partner in the almaty 
office and was most recently the 
partner responsible for advisory 
services in kazakhstan david has  
over 25 years commercial experience 
including eight years as managing 
partner of ernst  young kazakhstan 
nine years of practice in london  
two years in moscow and six years  
in lisbon portugal
he managed the integration of ernst  
 young and arthur andersen in 
kazakhstan when they merged in 2002 
across the cis during his term the  
ernst  young office grew from 25 
professionals to a firm of over 400 
professionals including 14 partners 
serving some of the leading enterprises  
in kazakhstan
he has been the chairman of the 
kazakhstan foreign investors council  
for three years as well as holding  
a board position with the american 
chamber of commerce in kazakhstan  
for six years
kuat oraziman aged 49
executive director
mr oraziman has 20 years of business 
experience in kazakhstan and abroad 
and nearly 10 years of oil and gas 
experience in kazakhstan his 
experience has included the operation  
of import and export businesses the 
establishment and operation of an 
international brewery in kazakhstan  
and acting as the kazakhstan 
representative of phillips and stork  
since 2001 mr oraziman has been  
a director of ada llp
mr oraziman also holds a doctorate  
in science and is a trained geologist 15
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
hyunsik jang aged 55
chief operating officer
hyunsik jang is a korean national who 
has 26 years experience in the 
upstream oil  gas industry gained 
principally with lgi where he worked in 
south east asia the middle east and 
latin america
in 2006 he was promoted to vice 
president in charge of the energy 
division and in 2007 transferred to 
kazakhstan as head of lgi’s central 
asia region mr jang was responsible 
for lgi’s interest in the ada and ada oil 
properties he was appointed as chief 
operating officer and an executive 
director of the board of roxi petroleum 
plc on 1 february 2010
edmund limerick aged 49
nonexecutive director 
edmund has been involved in central 
asia and financing the oil and gas 
business for the last 18 years he was  
a manager of the altima central asia 
fund which has invested in private 
equity in the oil sector in many 
countries in the region and prior to that 
he spent many years in deutsche bank 
as a project financier and senior oil and 
gas investment banker in moscow  
london and dubai
previously edmund was a solicitor  
with milbank tweed in moscow and 
freshfields and clifford chance in 
london his early career was spent  
in hm diplomatic service with postings  
in paris dakar and amman he was 
educated in oxford london moscow 
and paris and speaks russian 
he is a nonexecutive 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 nonexecutive 
director of roxi petroleum plc on  
3 february 2010 16
roxi petroleum plc 
annual report and accounts 2011
directors’ report and business review
the directors present their annual report on the operations  
of the company and the group together with the audited 
financial statements for the year ended 31 december 2011 
the chairman’s statement and the chief executive’s 
statement form part of the business review for this year
results and dividends
the consolidated income statement is set out on page 25 
and shows the loss for the year the directors do not 
recommend the payment of a dividend 2010 us  nil  
the position and performance of the group is discussed 
below and further details are given in the business review
principal activity
the principal activity of the company and the group is to 
build a diversified portfolio of oil and gas exploration and 
production assets in central asia the group’s focus is 
currently on kazakhstan as a result of numerous niche 
onshore opportunities available under the prevailing contract 
regime and the extensive operational experience of the 
management of the group in the country
group overview
on admission to aim in may 2007 the company raised  
us  78 million from institutional investors to pursue a 
strategy of building a diversified portfolio of oil and gas 
exploration and production assets located in central asia 
following the acquisition of 59 of eragon petroleum plc 
which was approved by shareholders on 29 february 2008 
the group had controlling interests in three additional 
contract areas the bng contract area the galaz contract 
area and the munaily contract area which are located in  
the kyzylorda region and western kazakhstan in the 
precaspian and turgai basins 
during 2011 and 2012 farmout agreements have been 
negotiated into selling down the group’s interests in the bng 
and galaz assets to provide funding to allow the group to 
meet its work programme commitments in respect of its 
primary assets 
strategy and future developments
the group’s longterm 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 nearterm production and increases in the 
stated reserves the company is focused on developing the 
existing portfolio of assets against the backdrop of a 
fluctuating oil price which has been rising in recent months 
the key components of the group’s strategy are summarised  
as follows
–  the group seeks to optimise its core assets by 
achieving early production and building the 
infrastructure to maximise shareholder value in the 
nearterm and to that end it commended first 
production at galaz in the first quarter 2012
–  in the mediumterm the group will maximise production 
and export routes to ensure shareholder value is 
progressively increased over time
–  in the longerterm the group will identify new 
opportunities for underdeveloped oil and gas assets with 
a view to developing them by sourcing new forms of 
finance and partners to leverage the expertise that roxi 
has acquired through developing assets within kazakhstan
current trading and prospects
since its first admission the company has received only 
minimal income with first production from one of its assets 
only starting in the first quarter in 2012 
for the year ended 31 december 2011 the group reported  
an after tax loss of us  95 million and had total equity of 
us  897 million
the directors intend to manage the activities of the company  
in a conservative manner 
key strengths
the directors believe that the company’s strengths will 
enable it to pursue a strategy to become a significant 
independent oil company in central asia the directors 
believe the company’s key strengths include
•	 e x p e r i e n c e d	t e a m
 the company benefits from an experienced team 
of proven oil and gas executives who also have  
indepth experience of operating in kazakhstan  
and extensive contacts in the region the company  
intends to utilise these contacts through their joint 
venture partners to maximise the benefit to the  
group’s operations and acquisitions
•	 s i g n i fi c a n t	n e a r  t e r m	p r o d u c t i o n
the directors believe the company’s existing reserves  
can be exploited to achieve further nearterm production 
that will drive early cash flows and will allow the business  
to achieve profitability and the continued expansion of 
the company’s business
•	 s i g n i fi c a n t	p o s s i b i l i t y	o f	a d d i t i o n a l	r e s e r v e s
in addition to existing reserves the directors consider 
there is a good chance that the actual recoverable 
reserves can be increased that the contract areas  
have historically been inadequately or poorly explored 
and that the contract areas offer outstanding 
development potential
•	 f u r t h e r	a c q u i s i t i o n	o p p o r t u n i t i e s
the directors consider that in the longterm the company 
is well placed to access and successfully negotiate oil and 
gas assets in kazakhstan at competitive prices and to 
further add to its portfolio of oil assets in the future 17
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
principal risks and uncertainties
the company and the group is subject to various risks 
relating to political economic legal social industry business 
and financial conditions the following risk factors which are 
not exhaustive are particularly relevant to the company and 
the group’s business activities
•	 f i n a n c i n g	r i s k s
the group continually monitors the financing 
arrangements to ensure the continuation of the 
operational activities the group has secured adequate 
financing of galaz and company llp for 2012 and has 
recently signed additional financing for bng llp from the 
farmout of a 35 interest to knoc
•	 e x p l o r a t i o n	r i s k
there is no assurance that the group’s exploration 
activities will be successful accordingly the group seeks 
to reduce this risk by reviewing the level of investment 
made in each project as well as engaging qualified 
personnel to undertake detailed assessments of the areas 
under exploration 
•	 e n v i r o n m e n t a l	a n d	o t h e r	r e g u l a t o r y	r e q u i r e m e n t s
existing and possible future environmental legislation 
regulations and actions could cause additional expense 
capital expenditures restrictions and delays in the 
activities of the group the extent of which cannot be 
predicted before exploration and production can 
commence the group must obtain regulatory approval 
and there is no assurance that such approvals will be 
obtained no assurance can be given that new rules and 
regulations will not be enacted or existing legislations will 
not be applied in a manner which could limit or curtail the 
group’s activities
•	 o p e r a t i o n a l	r i s k s
the group currently operates primarily in kazakhstan 
the nature of the group’s investments requires the 
commitment of significant funding to facilitate 
exploration and evaluation expenditure in kazakhstan 
it is the nature of oil and gas operations that each 
project is longterm it may be many years before the 
exploration and evaluation expenditures incurred are 
proven to be viable and for progress to reach 
commercial production to control these risks the 
board arranges for the provision of technical support 
directly or through appointed agents and also 
commissions technical research and feasibility studies 
both prior to entering into these commitments and 
subsequently in the life of these projects
in addition operational risks include equipment failure  
well blowouts pollution fire and the consequences of bad 
weather where the group is project operator it takes an 
increased responsibility for ensuring that the company is 
compliant with all relevant legislation
the group has hired competent people with appropriate skills  
to manage such risks at the appropriate levels within the 
group structure
financing and treasury
the group’s cash position at 31 december 2011 
was us  15 million 2010 us  50 million
the bulk of the group’s cash balances are held  
in us dollar denominated accounts
events after the reporting period
other than as disclosed in this annual report including  
note 32 to the financial statements there have been no 
material events between 31 december 2011 and the date  
of this report which are required to be brought to the 
attention of shareholders 
dividend policy
the directors do not intend to declare or pay a dividend  
in the immediate foreseeable future but subject to the 
availability of sufficient distributable profits intend to 
commence the payment of dividends when it becomes 
commercially prudent to do so
charitable and political donations
during the year the group made no charitable or  
political contributions
corporate social responsibility
the company will implement various social investment 
programmes throughout the group the company is 
committed to contribute to improving the quality of life  
and education of the local workforce and communities  
the company plans to work with its employees and local 
residents to determine the most effective ways to implement 
the social and community programmes
supplier payment policy
it is in the group’s policy to pay suppliers in accordance with the 
terms and conditions agreed with them the average number 
of days to pay suppliers in the year under review as calculated 
in the prescribed manner is 160 days 2010 100 days
employees
staff employed by the group are based primarily in 
kazakhstan the recruitment and retention of staff especially 
at management level is increasingly important as the group 
continues to build its portfolio of oil and gas assets
as well as providing employees with appropriate  
remuneration and other benefits together with a safe and 
enjoyable working environment the board recognises the 
importance of communicating with employees to motivate 
them and involve them fully in the business for the most part 
this communication takes place at a local level but staff are 
kept informed of major developments through email updates 
and access to the company’s website
the company has taken out full indemnity insurance on 
behalf of the directors and officers 18
roxi petroleum plc 
annual report and accounts 2011
directors’ report and business review continued
health safety and environment
it is the group’s policy and practice to comply with health 
safety and environmental regulations and the requirements of 
the countries in which it operates to protect its employees 
assets and environment
key performance indicators “kpis”
the directors are of the opinion that finding prospective 
accumulations of hydrocarbons is the appropriate kpi at this 
stage of the group’s business
going concern
the financial statements have been prepared on a going 
concern basis based upon projected future cash flows and 
planned work programmes 
on 30 april 2012 the group extended the term of the loan 
facility arrangement with vertom international nv for a further 
two years to 30 april 2014 and at the same time increased the 
facility amount to us  7 million note 322 in the opinion of 
the directors this will cover the working capital needs for the 
forthcoming twelve months 
directors and directors’ interests
the directors of the company who served during the year were
mr clive carver  nonexecutive chairman
mr david wilkes chief executive officer 
mr hyunsik jang chief operating officer
mr kuat oraziman  executive director
mr edmund limerick  nonexecutive director
biographical details of the current directors are set out on 
page 14 and 15 
details of the directors’ individual remuneration service 
contracts and interests in share options are shown in the 
remuneration committee report
financial instruments
details of the use of financial instruments by the company  
and its subsidiary undertakings are contained in note 30  
of the financial statements 
share options and warrants
the directors consider that an important part of the group’s 
remuneration policy should include equity incentives through 
the grant of share options to directors and employees
details of the options and warrants are set out in notes 28  
and 29 of the financial statements
statement of disclosure of information to auditors
all of the current directors have taken all the steps that they 
ought to have taken to make themselves aware of any 
information needed by the company’s auditors for the 
purposes of their audit and to establish that the auditors are 
aware of that information the directors are not aware of any 
relevant audit information of which the auditors are unaware
auditors
the company’s auditors bdo llp have indicated their 
willingness to continue in office and a resolution concerning 
their reappointment will be proposed at the next annual 
general meeting 
directors’ responsibilities
the directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable 
law and regulations 
company law requires the directors to prepare financial 
statements for each financial year under that law the 
directors have elected to prepare the group and company 
financial statements in accordance with international 
financial reporting standards ifrss as adopted by the 
european union under company law the directors must not 
approve the financial statements unless they are satisfied 
that they give a true and fair view of the state of affairs of the 
group and company and of the profit or loss of the group 
and company for that period the directors are also required 
to prepare financial statements in accordance with the rules 
of the london stock exchange for companies trading 
securities on the alternative investment market 
in preparing these financial statements the directors are 
required to
•	 select suitable accounting policies and then apply  
them consistently
•	 make judgements and accounting estimates that  
are reasonable and prudent
•	 state whether they have been prepared in accordance  
with ifrss as adopted by the european union subject  
to any material departures disclosed and explained in  
the financial statements and
•	 prepare the financial statements on the going concern  
basis unless it is inappropriate to presume that the  
company will continue in business 19
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
the directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain  
the company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the company 
and enable them to ensure that the financial statements 
comply with the requirements of the companies act 2006 
they are also responsible for safeguarding the assets of the 
company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
website publication
the directors are responsible for ensuring the annual report  
and the financial statements are made available on a website 
financial statements are published on the company’s website 
in accordance with legislation in the united kingdom 
governing the preparation and dissemination of financial 
statements which may vary from legislation in other 
jurisdictions the maintenance and integrity of the company’s 
website is the responsibility of the directors the directors’ 
responsibility also extends to the ongoing integrity of the 
financial statements contained therein
london registrars plc
company secretary
8 may 2012 20
roxi petroleum plc 
annual report and accounts 2011
remuneration committee report 
remuneration committee
the remuneration committee comprises clive carver david wilkes kuat oraziman and edmund limerick and is chaired by  
clive carver
remuneration policy
the company’s policy is to provide remuneration packages that will attract retain and motivate its executive directors and 
senior management this consists of a basic salary ancillary benefits and other performancerelated remuneration appropriate 
to their individual responsibilities and having regard to the remuneration levels of comparable posts the remuneration 
committee determines the contract term basic salary and other remuneration for the members of the board and the senior 
management team
service contracts
details of the current directors’ service contracts are as follows
date of service agreement
appointment letter
date of last renewal  
of appointment
executive
david wilkes 1 october 2009 1 january 2010
kuat oraziman 1 april 2007 27 june 2011
hyunsik jang 1 february 2010 27 june 2011
nonexecutive
clive carver 1 january 2008 1 january 2009
edmund limerick 1 february 2010 1 february 2010
basic salary and benefits
the basic salaries of the directors who served during the financial period are established by reference to their responsibilities 
and individual performance the amounts received by the directors are set out below in us 
2011 
salaryfees
2011 
benefits
2011 
total
2010 
total 
clive carver 102363 – 102363 96000
edmund limerick 48000 – 48000 44000
david wilkes 579145 92252 671397 660982
hyunsik jang 381879 57544 439423 359212
duncan mcdougall – – – 249301
kuat oraziman 480144 7531 487675 468307
the highest paid director had emoluments totalling us  671397 the highest paid director was granted 8660000 and 
exercised nil share options during the year for further details on directors emoluments see note 313
bonus schemes
the company has a bonus scheme for the executive directors and senior management team no bonus are payable in respect 
of the year to 31 december 2011  21
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
share options
the current interests as at approval of accounts of the current directors in share options agreements are as follows
directors – current interest granted exercise price expiry date
clive carver 2400000 4p 14 december 2021
david wilkes 4800000 4p 14 december 2021
kuat oraziman 4200000 4p 14 december 2021
hyunsik jang 4200000 4p 14 december 2021
edmund limerick 1200000 4p 14 december 2021
directors – current interest granted exercise price expiry date
clive carver 750000 13p 12 january 2021
david wilkes 3860000 13p 12 january 2021
kuat oraziman 3090000 13p 12 january 2021
hyunsik jang 3090000 13p 12 january 2021
edmund limerick 750000 13p 12 january 2021
directors – current interest granted exercise price expiry date
clive carver 538264 12p 14 august 2019
david wilkes 354918 12p 1 october 2019
david wilkes 2000000 12p 15 february 2020
kuat oraziman 269132 12p 14 august 2019
hyunsik jang 750000 12p 22 june 2020
edmund limerick 200000 12p 15 february 2020
directors – current interest granted exercise price expiry date
clive carver 1345660 38p 22 may 2017
david wilkes 1162555 38p 1 october 2019
kuat oraziman 672830 38p 22 may 2017
directors – current interest granted exercise price expiry date
clive carver 1215385 65p 29 february 2018
clive carver 387692 65p 22 april 2018
david wilkes 1462618 65p 1 october 2019
kuat oraziman 607692 65p 29 february 2018
kuat oraziman 193846 65p 22 april 2018 22
roxi petroleum plc 
annual report and accounts 2011
remuneration committee report continued
table for share options issued at 31 december 2011
directors – current interest granted exercise price expiry date
clive carver 2400000 4p 14 december 2021
david wilkes 4800000 4p 14 december 2021
kuat oraziman 4200000 4p 14 december 2021
hyunsik jang 4200000 4p 14 december 2021
edmund limerick 1200000 4p 14 december 2021
directors – current interest granted exercise price expiry date
clive carver 750000 13p 12 january 2021
david wilkes 3860000 13p 12 january 2021
kuat oraziman 3090000 13p 12 january 2021
hyunsik jang 3090000 13p 12 january 2021
edmund limerick 750000 13p 12 january 2021
directors – current interest granted exercise price expiry date
clive carver 538264 12p 14 august 2019
david wilkes 354918 12p 1 october 2019
david wilkes 2000000 12p 15 february 2020
kuat oraziman 269132 12p 14 august 2019
hyunsik jang 750000 12p 22 june 2020
edmund limerick 200000 12p 15 february 2020
directors – current interest granted exercise price expiry date
clive carver 1345660 38p 22 may 2017
david wilkes 1162555 38p 1 october 2019
kuat oraziman 672830 38p 22 may 2017
directors – current interest granted exercise price expiry date
clive carver 1215385 65p 29 february 2018
clive carver 387692 65p 22 april 2018
david wilkes 1462618 65p 1 october 2019
kuat oraziman 607692 65p 29 february 2018
kuat oraziman 193846 65p 22 april 2018
on behalf of the directors of roxi petroleum plc 
clive carver
chairman of remuneration committee
8 may 2012 23
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
report on corporate governance
in common with the board’s commitment to apply best 
practice corporate governance procedures and with 
reference to the uk corporate governance code “the 
code” on corporate governance the board has prepared 
the following report as an aim company there is no 
requirement to comply with the code but it has adopted  
the following corporate governance procedures which the 
directors believe demonstrates good corporate governance 
for the size of the group 
the group also intends to comply with the principles of  
the corporate governance guidelines for aim companies 
published by the quoted companies alliance in 2010 so  
far as it is practical for a company of its size
board of directors
the company has 2 nonexecutive directors and 3 executive 
directors as follows
mr clive carver nonexecutive chairman
mr david wilkes executive
mr kuat oraziman executive
mr hyunsik jang executive
mr edmund limerick nonexecutive
the board retains full and effective control over the  
company the company holds a board meeting at least  
once per quarter at which financial and other reports are 
considered and where appropriate voted on apart from 
regular meetings additional meetings are arranged when 
necessary to review strategy planning operational financial 
performance risk and capital expenditure and human 
resource and environmental management the board 
is also responsible for monitoring the activities of the 
executive management 
board of meetings
the board met 9 times and 10 times during 2011 and 2010 
respectively with the following attendance
2011 2010
mr c carver 9 10
mr e limerick 9 7
mr d wilkes 9 10
mr k oraziman 9 8
mr h jang 9 7
the board has established the following committees
audit committee
the audit committee which comprises clive carver and 
edmund limerick with clive carver acting as chairman 
determines and examines any matters relating to the financial 
affairs of the company including the terms of engagement of 
the group’s auditors and in consultation with the auditors 
the scope of the audit the audit committee receives and 
reviews reports from the management and the external 
auditors of the group relating to the annual and interim 
amounts and the accounting and internal control systems of 
the group in addition it considers the financial performance 
position and prospects of the company and ensures they are 
properly monitored and reported on 
remuneration committee
the remuneration committee comprising clive carver  
david wilkes edmund limerick and mr oraziman with  
clive carver acting as chairman reviews the performance  
of the senior management sets and reviews their 
remuneration and the terms of their service contracts  
and considers the group’s bonus and option schemes
rule 21 
the directors comply with rule 21 of the aim rules relating to 
directors’ dealing and take all reasonable steps to ensure 
compliance by the company’s applicable employees the 
company has adopted and operates a share dealing code for 
directors and employees in accordance with the aim rules
internal controls 
the board acknowledges responsibility for maintaining 
appropriate internal control systems and procedures to 
safeguard the shareholders’ investments and the assets 
employees and the business of the group
the board has established and operates a policy of  
continuous review and development of appropriate financial 
controls together with operating procedures consistent with  
the accounting policies of the group
the board does not consider it appropriate for the current 
size of the group to establish an internal audit function 24
roxi petroleum plc 
annual report and accounts 2011
we have audited the financial statements of roxi petroleum  
plc for the year ended 31 december 2011 which comprise the 
consolidated income statement the consolidated statement of 
comprehensive income the consolidated and parent company 
statement in changes in equity the consolidated and parent 
company statement of financial position the consolidated and 
parent company cash flow statement and the related notes 
the financial reporting framework that has been applied in  
their preparation is applicable law and international financial 
reporting standards ifrss as adopted by the european 
union and as regards the parent company financial 
statements as applied in accordance with the provisions  
of the companies act 2006 
this report is made solely to the company’s members as a 
body in accordance with chapter 3 of part 16 of the 
companies act 2006 our audit work has been undertaken so 
that we might state to the company’s members those matters 
we are required to state to them in an auditor’s report and for 
no other purpose to the fullest extent permitted by law we 
do not accept or assume responsibility to anyone other than 
the company and the company’s members as a body for our 
audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the statement of directors’ 
responsibilities the directors are responsible for the 
preparation of the financial statements and for being satisfied 
that they give a true and fair view our responsibility is to audit 
and express an opinion on the financial statements in 
accordance with applicable law and international standards 
on auditing uk and ireland those standards require us to 
comply with the auditing practices board’s apb’s ethical 
standards for auditors 
scope of the audit of the financial statements
a description of the scope of an audit of financial  
statements is provided on the apb’s website at  
wwwfrcorgukapbscopeprivatecfm 
opinion on financial statements
in our opinion 
•	 the financial statements give a true and fair view of the  
state of the group’s and the parent company’s affairs as  
at 31 december 2011 and of the group’s loss for the year 
then ended
•	 the group financial statements have been properly 
prepared in accordance with ifrss as adopted by the 
european union
•	 the parent company financial statements have been 
properly prepared in accordance with ifrss as adopted 
by the european union and as applied in accordance with 
the provisions of the companies act 2006 and
•	 the financial statements have been prepared in accordance 
with the requirements of the companies act 2006
opinion on other matters prescribed by the 
companies act 2006
in our opinion the information given in the directors’ report  
for the financial year for which the financial statements are 
prepared is consistent with the financial statements 
matters on which we are required to report by exception
we have nothing to report in respect of the following matters 
where the companies act 2006 requires us to report to you if  
in our opinion
•	 adequate accounting records have not been kept by the 
parent company or returns adequate for our audit have  
not been received from branches not visited by us or
•	 the parent company financial statements are not in 
agreement with the accounting records and returns or
•	 certain disclosures of directors’ remuneration specified  
by law are not made or
•	 we have not received all the information and explanations  
we require for our audit
scott knight senior statutory auditor
for and on behalf of bdo llp statutory auditor 
london 
united kingdom 
8 may 2012
bdo llp is a limited liability partnership registered in  
england and wales with registered number oc305127
independent auditors’ report to the members of roxi petroleum plc 25
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
consolidated income statement
notes
year to 
31 december
 2011 
’000
year to 
31 december 
2010 
’000
revenue 186 123
cost of sales 186 123
– –
impairment of unproven oil and gas assets 11 49580 10354
profit on disposal of subsidiary excluding release of  
cumulative translation reserve 1516 17636 1641
gain on acquisition of subsidiary 14 33642 –
release of cumulative translation reserve 141516 4964 15984
provision against joint venture receivable 19 6103 7818
reversal of provisionprovision against other receivables 14 7763 7763
sharebased payments 28 1556 306
other administrative expenses 7174 7564
10336 48148
operating loss 4 10336 48148
finance cost 7 1740 6124
finance income 8 1782 5459
loss before taxation 10294 48813
tax creditcharge 9 842 5248
loss after taxation 9452 54061
loss attributable to minority interests 10951 2351
incomeloss attributable to equity shareholders 1499 51710
9452 54061
basic and diluted earningsloss per ordinary share us cents 10 03 123
all of the results of the group during the year relate to continuing activities
no interim or final dividend has been paid or proposed during the year
the notes on pages 31 to 67 form part of these financial statements 26
roxi petroleum plc 
annual report and accounts 2011
consolidated statement of comprehensive income
year ended 
31 december 
2011 
us  ’000
year ended 
31 december 
2010 
us  ’000
loss after taxation 9452 54061
other comprehensive income
exchange differences on translating foreign operations 935 102
other comprehensive income loss for the year before and after taxation 935 102
total comprehensive loss for the year 10387 53959
total comprehensive income attributable to
owners of parent 947 51638
minority interest 11334 2321
the notes on pages 31 to 67 form part of these financial statements 27
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
consolidated statement of changes in equity
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
cumulative 
translation 
reserve 
’000
other 
reserves 
’000
capital 
contribution 
reserve 
’000
retained 
earnings 
’000
total 
’000
minority 
interests 
’000
total 
equity 
’000
total equity as at 1 january 2011 7832 104798 64702 3038 1779 2229 107530 66314 7954 58360
total comprehensive income for the year – – – 552 – – 1499 947 11334 10387
extinguishment of shareholder loan – – – – – 1344 1344 – – –
debts converted to equity 2945 6478 – – – – 9423 – 9423
purchase of subsidiary – – – 2056 – – 2056 27385 29441
arising on employee share options – – – – – – 1556 1556 – 1556
disposal of subsidiary – – – 2907 – – – 2907 1649 1258
total equity as at 31 december 2011 10777 111276 64702 1373 1779 3573 103131 83203 6448 89651
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
cumulative 
translation 
reserve 
’000
other 
reserves 
’000
capital 
contribution 
reserve 
’000
retained 
earnings 
’000
total 
’000
minority 
interests 
’000
total 
equity 
’000
total equity as at 1 january 2010 7772 104305 64702 19094 2378 265 58293 102035 29703 131738
total comprehensive income for the year – – – 72 – – 51710 51638 2321 53959
arising on share issues 60 493 – – – – – 553 – 553
arising on loan from shareholder – – – – – 132 1476 1344 – 1344
forfeited warrants – – – – 599 – 599 – – –
purchase of additional share in subsidiary – – – – – 2362 – 2362 1018 3380
arising on exercise of warrants – – – – – – 92 92 – 92
arising on employee share options – – – – – – 306 306 – 306
disposal of subsidiary – – – 15984 – – – 15984 34318 18334
total equity as at 31 december 2010 7832 104798 64702 3038 1779 2229 107530 66314 7954 58360
reserve description and purpose
share capital the nominal value of shares issued 
share premium amount subscribed for share capital in excess of nominal value 
deferred shares the nominal value of deferred shares issued 
cumulative translation reserve losses arising on retranslating the net assets of overseas operations into us dollars 
other reserves fair value of warrants issued 
capital contribution reserve capital contribution arising on discounted loans step by step acquisitions  
  and effect of issue costs of debt in subsidiary 
retained earnings cumulative losses recognised in the consolidated income statement 
minority interests the interest of noncontrolling interests in the net assets of the subsidiaries
 forfeited warrantsarises as a result of the company’s expired warrants during 2010 see note 29
the notes on pages 31 to 67 form part of these financial statements 28
roxi petroleum plc 
annual report and accounts 2011
parent company statement of changes in equity
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
other 
reserves 
’000
capital 
contribution 
reserve 
’000
retained 
earnings 
’000
total 
’000
total equity as at 1 january 2011 7832 104798 64702 1779 1344 87738 92717
total comprehensive income for the year – – – – – 2786 2786
extinguishment of shareholder loan – – – – 1344 1344 –
debts converted to equity 2945 6478 – – – – 9423
arising on employee share options – – – – – 1556 1556
total equity as at 31 december 2011 10777 111276 64702 1779 – 87624 100910
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
other 
reserves 
’000
capital 
contribution 
reserve 
’000
retained 
earnings 
’000
total 
’000
total equity as at 1 january 2010 7772 104305 64702 2378 1476 63574 117059
total comprehensive income for the year – – – – – 26637 26637
arising on share issues 60 493 – – – – 553
arising on loan from shareholder – – – – 132 1476 1344
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 7832 104798 64702 1779 1344 87738 92717
reserve description and purpose
share capital the nominal value of shares issued 
share premium amount subscribed for share capital in excess of nominal value 
deferred shares the nominal value of deferred shares issued 
other reserves fair value of warrants issued 
capital contribution reserve capital contribution arising on discounted loans 
retained earnings cumulative losses recognised in the income statement
 forfeited warrants arises as a result of the company’s expired warrants during 2010 see note 29
the notes on pages 31 to 67 form part of these financial statements 29
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
company number 5966431 notes
group 
2011
’000
company
2011 
’000
 group
2010
’000
 company
2010
’000
assets
noncurrent assets
unproven oil and gas assets 11 111406 – 76298 –
property plant and equipment 12 533 – 674 5
investments in subsidiaries 13 – 93522 – 96122
other receivables 19 19105 19703 49101 10789
restricted use cash 345 1 221 1
total noncurrent assets 131389 113226 126294 106917
current assets
inventories 18 1689 – 762 –
other receivables 19 711 68 1748 236
cash and cash equivalents 20 1546 1067 4959 2194
3946 1135 7469 2430
assets in disposal group classified as held for sale 16 – – 8357 –
total current assets 3946 1135 15826 2430
total assets 135335 114361 142120 109347
equity and liabilities
capital and reserves attributable to equity holders of the parent
share capital 21 10777 10777 7832 7832
share premium 111276 111276 104798 104798
deferred shares 21 64702 64702 64702 64702
other reserves 1779 1779 1779 1779
capital contribution reserve 3573 – 2229 1344
retained earnings 103131 87624 107530 87738
cumulative translation reserve 1373 – 3038 –
83203 100910 66314 92717
minority interests 6448 – 7954 –
total equity 89651 100910 58360 92717
current liabilities
trade and other payables 22 7037 4899 6911 11714
purchase consideration received in advance 23 – – 14213 –
shortterm borrowings 24 3783 500 14009 4460
warrant liability 29 84 84 332 332
current income tax – – 580 –
current provisions 25 3394 – 2552 105
14298 5483 38597 16611
liabilities directly associated with assets in disposal  
group classified as held for sale 16 – – 6906 –
total current liabilities 14298 5483 45503 16611
noncurrent liabilities
borrowings 26 12117 2728 27818 –
deferred tax liabilities 27 8953 – 8725 –
noncurrent provisions 25 1332 – 695 –
other payables 8984 5240 1019 19
total noncurrent liabilities 31386 7968 38257 19
total liabilities 45684 13451 83760 16630
total equity and liabilities 135335 114361 142120 109347
these financial statements were approved and authorised for issue by the board of directors on 8 may 2012 and were signed on 
its behalf by
clive carver david wilkes
chairman of the board chief executive officer
the notes on pages 31 to 67 form part of these financial statements
consolidated and parent company statement of financial position 30
roxi petroleum plc 
annual report and accounts 2011
consolidated and parent company cashflow statements
year to 31 december 2011 year to 31 december 2010
 notes
group
’000
company
’000
group
’000
company
’000
cash flows from operating activities
cash received from customers 136 – 123 –
payments made to suppliers for goods and 
services 4351 1725 12838 3808
4215 1725 12715 3808
cash flows from investing activities
purchase of plant property and equipment 12 305 – 383 –
additions to unproven oil and gas assets 11 7416 – 11926 –
disposal of plant property and equipment 12 28 3 44 32
transfers tofrom restricted use cash 124 – 193 1
acquisition of subsidiaries net of cash acquired 1415 136 – 3380 –
disposal of subsidiary 151623 1743 – 19682 –
purchase consideration received in advance
repaid 23 490 – 13723 –
repayment of financial aid and loans by 
subsidiaries – – – 13629
issue of financial aid and loans to subsidiaries – 6729 – 9677
acquisition of joint venture 17 750 – 165 –
net cash flow from investing activities 9164 6726 18118 3983
cash flows from financing activities
net proceeds from issue of ordinary share capital 
net of expenses relating to issue of shares – – 553 553
repayment of borrowings 2500 – 16433 8433
new loans received 9824 7324 27878 3500
loans from subsidiaries – – – 5416
loans to joint venture from partners 2641 – 639 –
issue of loans to joint venture – – 17030 –
net cash from financing activities 9965 7324 4393 1036
net increase in cash and cash equivalents 3414 1127 1010 1211
effects of exchange rates – – – –
cash and cash equivalents at beginning of period 4960 2194 3950 983
cash and cash equivalents at end of period 20 1546 1067 4960 2194
there were no significant noncash transactions during the year except as disclosed in note 14 loans transferred note 21 
borrowings converted to equity and note 25 change in estimates and increase in provision
the notes on pages 31 to 67 form part of these financial statements 31
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
notes to the financial statements
general
roxi petroleum plc “the company” is a public company incorporated and domiciled in england and wales the address of its 
registered office is 4th floor haines house 21 john street london wc1n 2bp these consolidated financial statements were 
authorised for issue by the board of directors on 8 may 2012
the principle activities of the group are exploration and production of crude oil
1 principal accounting policies
the principal accounting policies applied in the preparation of these consolidated financial statements are set out below 
11 basis of preparation
the financial statements have been prepared in accordance with international financial reporting standards “ifrs” as adopted 
by the european union and with those parts of the companies act 2006 applicable to companies reporting under ifrs
the financial statements have been prepared on a going concern basis based upon projected future cash flows and planned  
work programmes 
on 30 april 2012 the group extended the term of the loan facility arrangement with vertom international nv for a further two 
years to 30 april 2014 and at the same time increased the facility amount to us  7 million note 322 in the opinion of the 
directors this will cover the working capital needs until pilot production from its various assets commences from this point 
operations will be cash generative
the company has taken advantage of section 408 of the companies act 2006 and has not included its own income statement in 
these financial statements the group loss for the year included a loss on ordinary activities after tax of us  2786000 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
12 accounting standards issued but not adopted
the ifrs financial information has been drawn up on the basis of accounting policies consistent with those applied in the 
financial statements for the year to 31 december 2010 the following new standards and amendments to standards are 
mandatory for the first time for the group for the financial year beginning 1 january 2011 except as noted the implementation 
of these standards did not have a material effect on the group 
standard impact on initial application effective date
ifric 19 extinguishing financial 
liability with equity 
instruments 
this interpretation addresses transactions in which an entity issues 
equity instruments to a creditor in return for the extinguishment of all 
or part of a financial liability 
the group applied this interpretation from 1 january 2011
1 july 2010
ias 24 
revised 
related party 
disclosures 
the revised standard responds to concerns that the previous 
disclosure requirements and the definition of a related party were too 
complex and difficult to apply in practice especially in environments 
where government control is pervasive 
the group applied the revised standard from 1 january 2011
1 january 2011
improvements  
to ifrss 2010
the improvements in this amendment clarify the requirements of 
ifrss and eliminate inconsistencies within and between standards 
the group applied the amendments from 1 january 2011
1 january 2011 32
roxi petroleum plc 
annual report and accounts 2011
12 accounting standards issued but not adopted continued
the following new standards and amendments to standards are effective in 2011 but not relevant for the group
standard impact on initial application effective date
ias 32 
amendment 
classification of rights 
issues
the amendment addresses the accounting for rights issues that are 
denominated in a currency other than the functional currency of the 
issuers the amendment requires for rights issues to be accounted for  
as equity provided the rights are offered prorata to all existing owners  
of the entity 
the amendment is not relevant to the group as it had no rights issues
1 february 2010
ifrs 1 
amendment
firsttime adoption  
of ifrs
the amendment permits firsttime adopters to use the same 
transitional provisions as are available to existing preparers of ifrs 
this amendment is not relevant to the group as it is an existing  
ifrs preparer
1 july 2010 
ifric 14 
 ias 19 
amendment 
limit on a defined 
benefit asset minimum 
funding requirements 
and their interaction 
the amendment applies in the limited circumstances when an entity 
is subject to minimum funding requirements and makes an early 
payment of contributions to cover those requirements 
the amendment is not relevant to the group as it is not subject to 
minimum funding requirement
1 january 2011
the following standards amendments and interpretations that are not yet effective and have not been early adopted 
standard impact on initial application effective date
ifrs 7 
amendments
disclosures – transfers 
of financial assets 
the amendment requires the disclosure of information in respect 
of all transferred financial assets that are not derecognised and for 
any continuing involvement in a transferred asset existing at the 
reporting date 
the group will apply the amendments from 1 january 2012
1 july 2011
ifrs 1 
amendments 
severe hyperinflation 
and removal of  
fixed dates for first
time adopters 
management do not expect this amendment which is subject to  
the endorsement by the eu to be relevant to the group 
1 july 2011
ias 12 
amendment
deferred tax recovery 
of underlying assets 
the amendment introduces the presumption when measuring the 
deferred tax relating to an asset that the entity will normally recover 
its carrying amount through sale 
management do not expect this amendment which is subject to the 
endorsement by the eu to be relevant to the group
1 january 2012 
ias 1 
amendment 
presentation of  
items of other 
comprehensive income 
the amendment requires companies to group together items within 
other comprehensive income oci that may be reclassified to the 
profit or loss section of the income statement 
the group will apply the amendment from 1 january 2013 subject to  
the endorsement by the eu
1 july 2012
ifrs 10 consolidated financial 
statements 
the new standard replaces the consolidation requirements in sic12 
“consolidation – special purpose entities” and ias 27 “consolidated  
and separate financial statements” 
the group will apply the standard from 1 january 2013  
subject to the endorsement by the eu
1 january 2013 
notes to the financial statements continued 33
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
standard impact on initial application effective date
ifrs 11 joint arrangements the new standard requires that a party to a joint arrangement 
recognises its rights and obligations arising from the arrangements 
rather than focusing on the legal form 
the group will apply the standard from 1 january 2013 subject to the 
endorsement by the eu
1 january 2013 
ifrs 12 disclosure of interest 
in other entities 
the standard includes the disclosure requirements for all forms of 
interest in other entities including subsidiaries joint arrangements 
associates and unconsolidated structured entities 
the group will apply the standard from 1 january 2013 subject to the 
endorsement by the eu
1 january 2013 
ifrs 13 fair value 
measurement 
the standard defines fair value sets out a framework for measuring 
fair value and requires disclosures about fair value measurements 
the group will apply the standard from 1 january 2013 subject to the 
endorsement by the eu
1 january 2013 
ias 27 
amendment 
2011
separate financial 
statements 
the amendment contains accounting and disclosure requirements 
for investment in subsidiaries joint ventures and associates when an 
entity prepares separate financial statements 
the group will apply the amendment from 1 january 2013 subject to 
the endorsement by the eu
1 january 2013 
ias 28 
amendment 
2011
investments in 
associates and joint 
ventures 
the amendment includes the required accounting for joint ventures as 
well as the definition and required accounting for associates 
the group will apply the amendment from 1 january 2013 subject to 
the endorsement by the eu
1 january 2013 
ias 19 
amendment 
2011 
employee benefits the main changes introduced by the amendment revolve around the 
accounting for defined benefit pension schemes 
management do not expect this amendment which is subject to 
the endorsement by the eu to be relevant to the group as it has no 
defined benefit pension scheme in place
1 january 2013 
ifric 20 stripping costs in the 
production phase of a 
surface mine 
this interpretation applies to waste removal stripping costs that are 
incurred in surface mining activity during the production phase of  
the mine
the group will apply the interpretation from 1 january 2013 subject 
to the endorsement by the eu
1 january 2013 
ifrs 7 
amendment 
2011
disclosures – 
offsetting financial 
assets and financial 
liabilities 
the amendment introduces disclosures to enable users of financial 
statements to evaluate the effect or potential effect of netting 
arrangements on entity’s financial position 
the group will apply the amendment from 1 january 2013 subject to  
the endorsement by the eu
1 january 2013 34
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
standard impact on initial application effective date
ias 32 
amendment 
2011
offsetting financial 
assets and financial 
liabilities
the amendment seeks to clarify rather than change the offsetting 
requirements previously set out in ias 32 
the group will apply the amendment from 1 january 2014 subject to  
the endorsement by the eu
1 january 2014
ifrs 9 financial instruments the standard will eventually replace ias 39 in its entirety however the 
process has been divided into three main components classification 
and measurement impairment and hedge accounting 
the group will apply the standard from 1 january 2013 subject to the 
endorsement by the eu
1 january 2015
 not yet endorsed by the eu 
the group is evaluating the impact of the above pronouncements but they are not expected to have a material impact on the 
group’s earnings or shareholders’ funds
13 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 
linebyline 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
14 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 
15 foreign currency translation
151 functional and presentational currencies
items included in the financial statements of each of the group’s entities are measured using the currency of the primary 
economic environment in which the entity operates “the functional currency” the consolidated financial statements are 
presented in us dollars “usd” which is the group’s presentational currency rs munai llp beibars munai llp munaily 
kazakhstan llp bng ltd llp roxi petroleum services llp and roxi petroleum kazakhstan llp subsidiary undertakings of 
the group and galaz and company llp being jointly controlled entities undertake their activities in kazakhstan and the kazakh 
tenge is the functional currency of these entities the functional currency for the company rs munai bv beibars bv 
ravninnoe bv galaz energy bv and bng energy bv is usd as the significant transactions and assets and liabilities of these 
companies are in usd
12 accounting standards issued but not adopted continued 35
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
152 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 
nonmonetary 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 nonmonetary 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 
153 consolidation
for the purpose of consolidation all assets and liabilities of group entities with a foreign functional currency are translated at the 
rate prevailing at the balance sheet date the income statement is translated at the exchange rates approximating to those ruling 
when the transaction took place exchange difference arising on retranslating the opening net assets from the opening rate and 
results of operations from the average rate are recognised directly in equity the “cumulative translation reserve”
16 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
17 deferred tax
deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting 
purposes and the amounts used for taxation purposes the following temporary differences are not provided for the initial 
recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination and 
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future 
the amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of 
assets and liabilities using tax rates enacted or substantively enacted at the balance sheet date
deferred tax liabilities are generally recognised for all taxable temporary differences a deferred tax asset is recorded only to the 
extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised
18 unproven oil and gas assets
the group applies the full cost method of accounting for exploration and unproven asset costs having regard to the 
requirements of ifrs 6 ‘exploration for and evaluation of mineral resources’ under the full cost method of accounting costs of 
exploring for and evaluating oil and gas properties are accumulated and capitalised by reference to appropriate cost pools 
such cost pools are based on license areas the group currently has five cost pools 
exploration and evaluation costs are initially capitalised within ‘intangible assets’ such exploration and evaluation costs may 
include costs of licence acquisition technical services and studies seismic acquisition exploration drilling and testing but do 
not include costs incurred prior to having obtained the legal rights to explore an area which are expensed directly to the income 
statement as they are incurred 
tangible assets acquired for use in exploration and evaluation activities are classified as property plant and equipment 
however to the extent that such a tangible asset is consumed in developing an intangible exploration and evaluation asset the 
amount reflecting that consumption is recorded as part of the cost of the intangible asset
the amounts included within unproven oil and gas assets include the fair value that was paid for the acquisition of partnerships 
holding subsoil use in kazakhstan these licences have been capitalised to the group’s full cost pool in respect of each license area 
exploration and unproven intangible assets related to each exploration licenceprospect 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 poolwide impairment test as set out below  36
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
18 unproven oil and gas assets continued
such indicators include the point at which a determination is made as to whether or not commercial reserves exist where the 
exploration and evaluation assets concerned fall within the scope of an established full cost pool the exploration and evaluation 
assets are tested for impairment together with all development and production assets associated with that cost pool as a single 
cash generating unit the aggregate carrying value is compared against the expected recoverable amount of the pool generally 
by reference to the present value of the future net cash flows expected to be derived from production of the commercial 
reserves where the exploration and evaluation assets to be tested fall outside the scope of any established cost pool there will 
generally be no commercial reserves and the exploration and evaluation assets concerned will generally be written off in full 
any impairment loss is recognised in the income statement as an impairment and separately disclosed
if commercial reserves have been discovered the related exploration and evaluation assets are assessed for impairment on a 
cost pool basis as set out below and any impairment loss is recognised in the income statement the carrying value after any 
impairment loss of the relevant exploration and evaluation assets is then reclassified as development and production assets 
within property plant and equipment development and production assets are amortised on a unit of production basis over the 
life of the commercial reserves of the pool to which they relate 
19 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 unitofproduction 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
110 restricted use cash
restricted use cash is the amount set aside by the group for the purpose of creating an abandonment fund to cover the future  
cost of the decommissioning of oil and gas wells and related facilities and in accordance with local legal rulings 
under the ssuc contract the group must place 1 of the value of exploration costs in an escrow deposit account at the end 
of the contract this cash will be used to return the field to the condition that it was in before exploration started
111 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 straightline 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 24 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
112 investments company
noncurrent 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 
113 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 shortterm cash deposits which comprise cash on deposit with an original maturity of less than 3 months other 
receivables are initially measured at fair value and subsequently at amortised cost
the group’s financial liabilities are noninterest bearing trade and other payables other interest bearing borrowings and 
warrants noninterest bearing trade and other payables and other interest bearing borrowings are stated initially at fair  
value and subsequently at amortised cost warrants are recognised on a fair value basis through the income statement 37
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
there are longterm 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 noncurrent borrowings and 
receivables using a market rate of interest
share capital issued to extinguish financial liabilities are fair valued with any difference to the carrying value of the financial 
liability taken to the income statement
financial instruments are recognised on the balance sheet at fair value when the group becomes a party to the contractual 
provisions of the instrument
114 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 
115 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 pretax rate that reflects current market 
assessments of the time value of money and where appropriate the risks specific to the liability
116 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
117 sharebased payments
the group has used shares and share options as consideration for services received from employees 
equitysettled sharebased 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 equitysettled sharebased instrument is expensed on a 
straightline basis over the vesting period based on the group’s estimate of the shares that will eventually vest
equitysettled sharebased payment transactions with other parties are measured at the fair value of the goods or services 
received except where the fair value cannot be estimated reliably in which case they are measured at the fair value of the equity 
instruments granted measured at the date the entity obtains the goods or the counterparty renders the service the fair value 
determined at the grant date of such an equitysettled sharebased 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 blackscholes model the expected life used in the model has been adjusted based on 
management’s best estimate for the effects of nontransferability exercise restrictions and behavioural considerations
118 warrants
the warrants are separated from the host contract as their risks and characteristics are not closely related to those of the host 
contracts due to the exercise price of the warrants being in a different currency to a functional currency of the company at 
each reporting date the warrants are valued at fair value with changes of fair value recognised in profit and loss as they arise 
the warrants and host contracts are presented under separate heading on the balance sheet the fair values of the warrants are 
calculated using the blackscholes model 
119 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
120 cost of sales
during test production cost of sales cannot be reliably estimated and therefore a cost of sales equal to revenue is recognised  38
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
121 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
122 interest receivable
interest income is recognised using the effective interest rate method
123 accounts not presented in sterling
for reference the year end exchange rate from sterling to us  was 155 and the average rate during the year was 160
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
21 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 
22 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
23 decommissioning
provision has been in the accounts for future decommissioning costs to plug and abandon wells the costs of provisions  
have been added to the value of the unproven oil and gas asset and will be depreciated on the unit of production basis the 
decommissioning liability is stated in the accounts at discounted present value and accreted up to the final liability by way of an 
annual finance charge
the group has potential decommissioning obligations in respect of its interests in kazakhstan the extent to which a provision is 
required in respect of these potential obligations depends inter alia on the legal requirements at the time of decommissioning  
the cost and timing of any necessary decommissioning works and the discount rate to be applied to such costs
24 sharebased compensation
in order to calculate the charge for sharebased compensation as required by ifrs2 the group makes estimates principally 
relating to the assumptions used in its optionpricing model as set out in note 28
3 segmental reporting
operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision 
maker the chief operating decision maker who is responsible for allocating resources and assessing the performance of the 
operating segments and making strategic decisions has been identified as the board of directors
the group operates in one operating segment exploration for oil in kazakhstan therefore no additional segmental 
information is presented  39
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
4 operating loss
group operating loss for the period has been arrived after charging
2011
 ’000
2010 
’000
depreciation of property plant and equipment note 12 297 267
auditors’ remuneration note 5 321 299
staff costs note 6 4145 3717
sharebased payment remuneration all equity settled note 6 1556 306
impairment of unproven oil and gas assets note 11 49580 10354
provision against other receivablesreversal of provision note 14 7763 7763
provision against joint venture receivable notes 1619 6103 7818
5 group auditor’s remuneration
fees payable by the group to the company’s auditor and its associates in respect of the year
 
2011 
’000
2010 
’000
fees for the audit of the annual financial statements 197 227
auditing of accounts of associates of the company 56 66
other services 68 6
321 299
6 employees and directors
staff costs during the period
group 
2011
 ’000
group 
2010 
’000
wages and salaries 3546 3229
social security costs 390 313
pension costs 209 175
sharebased payments 1556 306
 5701 4023
average monthly number of people employed including executive directors
group 
2011
group 
2010
technical 10 19
field operations 20 13
finance 17 17
administrative and support 30 44
other – 2
 77 95
key management compensation
group 
2011 
’000
group 
2010
 ’000
salaries and shortterm employee benefits 1749 1878
 1749 1878
directors’ emoluments
the directors are the key management personnel of the company and group details of directors’ emoluments and interests  
in shares are shown in the remuneration report 40
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
7 finance cost
group 
2011
’000
group 
2010 
’000
loan interest payable 1196 2978
unwinding of fair value adjustments on loans 454 1951
write off of financial asset – 1106
unwinding of discount on provisions note 25 90 89
1740 6124
8 finance income
group 
2011 
’000
 group 
2010 
’000
interest income on financing provided to jointly controlled entities 1143 3526
revaluation of warrants see note 29 248 1206
other 391 727
1782 5459
9 taxation
 
analysis of charge for the period
group 
2011 
’000
 group 
2010 
’000
current tax charge 2600 5055
deferred tax creditcharge 3442 193
tax creditcharge 842 5248
the tax chargecredit for the period can be reconciled to the loss for the year as follows
 
group 
2011
 ’000
 group 
2010 
’000
loss on ordinary activities before tax 10294 48813
tax on the above at the standard rate of corporate income tax in the uk 26 2010 28 2676 13668
effects of
non deductible expenses 1349 8738
increase of deferred tax liability due to change in future tax rates see note 27 – 1687
effect of different tax rates overseas 822 1922
withholding tax on capital gain see note 14 15 1877 4502
recognition of previously unrecognized benefit from losses carried forward 3442 –
tax losses carried forward 1228 2067
taxation 842 5248 41
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
10 earningsloss per share
basic earningsloss per share is calculated by dividing the earningsloss 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 earningsloss 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 
antidilutive and therefore diluted earningsloss per share has not been calculated at the balance sheet date there were 
72821429 2010 70655264 potentially dilutive ordinary shares consisting of share options and warrants notes 28 and 29 
the calculation of earnings per share is based on
2011 2010
the basic weighted average number of ordinary shares in issue during the period 468011360 419847345
the incomeloss for the period attributable to equity shareholders ’000 1449 51710
11 unproven oil and gas assets
cost
group 
’000
cost at 1 january 2010 211849
additions 8937
sales from test production 123
disposal of subsidiary note 14 145970
foreign exchange difference 837
reclassification to assets held for sale note 16 30533
other reclassifications 13130
recognition of joint venture note 17 34082
cost at 31 december 2010 92209
additions 8896
sales from test production 186
disposal of subsidiary note 15 40765
foreign exchange difference 2376
acquisition of subsidiary note 14 117459
recognition of joint venture note 17 13950
cost at 31 december 2011 189187 42
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
11 unproven oil and gas assets continued
accumulated impairment
group 
’000
accumulated impairment at 1 january 2010 24241
impairment in the year 10354
disposal of subsidiary note 14 8905
foreign exchange difference 29
reclassification to assets held for sale note 16 22938
other reclassifications 13130
cost at 31 december 2010 15911
impairment in the year 61975
foreign exchange difference 105
cost at 31 december 2011 77781
net book value at 1 january 2010 187608
net book value at 31 december 2010 76298
net book value at 31 december 2011 111406
unproven oil and gas assets represent the acquisition cost and subsequent exploration activities in respect of four licenses held 
by kazakh group entities the carrying values of those assets at 31 december 2011 were as follows beibars munai llp us  nil 
2010 us  nil bng ltd llp 100 consolidated us  934 million 2010 2341 share us  352 million galaz and company 
llp 3422 share us  159 million 2010 100 consolidated us  411 million and munaily kazakhstan llp us  22 million 
2010 us  nil
the directors have carried out an impairment review of these assets on a field by field basis in carrying out this review the 
directors have taken into account the potential net present values of expected future cash flows and values implied by farmin 
agreementssale 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 forcemajeure situation and the uncertainties surrounding the beibars asset the directors 
have made a full provision against this asset 
as a result of the impairment review during 2011 the directors have made provisions of us  62 million in respect of the  
bng asset with an offsetting release of deferred tax of us  124 million resulting to the net effect on impairment expense  
of us  496 million during 2010 the directors have made provisions of us  104 million in respect of the ravninnoe asset  
with an offsetting release of deferred tax of us  15 million 43
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
12 property plant and equipment
group
motor vehicles 
’000
buildings 
’000
other 
’000
total 
’000
cost at 1 january 2010 204 599 597 1400
additions 105 – 278 383
disposals 57 – 48 105
reclassifications 62 138 76 –
reclassification to assets held for sale note 16 8 30 38 76
disposal of subsidiary note 14 145 – 250 395
recognition of joint venture note 17 34 – 59 93
cost at 31 december 2010 195 431 674 1300
additions 103 – 202 305
disposals 69 – 40 109
disposal of subsidiary note 15 103 431 315 849
recognition of joint venture note 17 35 147 108 290
foreign exchange difference 1 1 5 7
acquisition of subsidiary note 14 110 – 190 300
cost at 31 december 2011 270 146 814 1230
depreciation at 1 january 2010 110 74 320 504
charge for the period 48 46 173 267
disposals 25 – 36 61
reclassifications 18 5 13 –
reclassification to assets held for sale note 16 3 12 13 28
disposal of subsidiary note 14 34 – 39 73
recognition of joint venture note 17 8 – 9 17
depreciation at 31 december 2010 86 113 427 626
charge for the period 59 44 194 297
disposals 47 – 34 81
disposal of subsidiary note 15 15 155 127 297
recognition of joint venture note 17 5 53 43 101
foreign exchange difference 1 1 3 5
acquisition of subsidiary note 14 26 – 30 56
depreciation at 31 december 2011 113 54 530 697
net book value at
1 january 2010 94 525 277 896
31 december 2010 109 318 247 674
31 december 2011 157 92 284 533 44
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
12 property plant and equipment continued
company
motor vehicles 
’000
buildings 
’000
other 
’000
total 
’000
cost at 1 january 2010 – – 70 70
disposals – – 57 57
cost at 31 december 2010 – – 13 13
disposals – – 13 13
cost at 31 december 2011 – – – –
depreciation at 1 january 2010 – – 22 22
charge for the period – – 11 11
disposals – – 25 25
depreciation at 31 december 2010 – – 8 8
charge for the period – – 2 2
disposals – – 10 10
depreciation at 31 december 2011 – – – –
net book value at
1 january 2010 – – 48 48
31 december 2010 – – 5 5
31 december 2011 – – – –
13 investments company
investments
company 
’000
cost
at 1 january 2010 133775
additions –
at 31 december 2010 133775
additions –
disposals 9000
at 31 december 2011 124775
impairment
at 1 january 2010 31253
impairment in 2010 6400
at 31 december 2010 37653
impairment in 2011 –
disposals 6400
at 31 december 2011 31253
net book value at
31 december 2010 96122
31 december 2011 93522
  during the year ravninnoe bv sold its 30 share in ravninnoe llp as described in note 16 therefore cost of investments as well as impairment 
recognized in prior years were disposed from the books of the company
 the investment in ravninnoe bv which held 30 of ravninnoe oil llp has been impaired during 2010 due to the impairment of oil and gas assets  45
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
the company’s principal subsidiary undertakings and galaz and company llp being jointly controlled entity which are 
included in these consolidated financial statements are
name of undertaking
country of 
incorporation
effective holding 
and proportion of 
voting rights held at 
31 december 2011
effective holding 
and proportion of 
voting rights held at 
31 december 2010 nature of business
rs munai bv formerly sytero bv netherlands 100 100 holding company
beibars bv formerly sytero 2 bv netherlands 100 100 holding company
ravninnoe bv formerly sytero 3 bv netherlands 100 100 holding company
bng energy bv netherlands 59 59 holding company
galaz energy bv formerly sytero 4 bv netherlands 59 59 holding company
rs munai llp kazakhstan 50 50 exploration company
beibars munai llp kazakhstan 50 50 exploration company
ravninnoe oil llp kazakhstan 0 30 exploration company
bng ltd llp kazakhstan 58 23 exploration company
galaz and company llp kazakhstan 34 58 exploration company
munaily kazakhstan llp kazakhstan 58 58 exploration company
roxi petroleum services llp kazakhstan 100 100 management company
roxi petroleum kazakhstan llp kazakhstan 100 100 management company
eragon petroleum limited england 59 59 holding company
ada bv netherlands 100 100 dormant
ada oil bv netherlands 100 100 dormant
 indirect shareholding of the company
  ravninnoe oil llp was disposed on 27 december 2011 see note 16 at 31 december 2011 the group consolidated profit and losses and cash 
flows related to ravninnoe oil llp
rs munai llp beibars munai llp munaily kazakhstan llp bng ltd llp have been classified as subsidiary undertakings 
rather than as joint ventures since in the opinion of the directors the company has operational control of these entities 
galaz and company llp is a jointly controlled by the group and as a result from 11 january 2011 it has been proportionately 
consolidated as a jointly controlled entity as disclosed in note 15  46
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
14 bng reacquisition and disposal
141 bng reacquisition
on 10 may 2011 the group received back its 35 interest in bng ltd llp from canamens which increased its share in bng ltd 
llp from 2341 to 5841 in addition canamens assigned back to bng energy bv its share of loans receivable from the 
operating entity of us  236 million representing canamens share of funding provided to bng ltd llp in 2009 and 2010 in return 
for the assignment of the loan to bng energy bv roxi petroleum plc agreed to pay to canamens a royalty equivalent to 15 of 
the future gross revenues generated from the operating asset as disclosed in note 323 canamens share of funding transferred to 
bng energy bv was subsequently assigned by bng energy bv to roxi petroleum plc 
bng ltd llp was treated as a subsidiary and fully consolidated to the group’s financials as at 31 december 2011 before the 
transfer back of interest bng ltd llp was treated as a jointly controlled entity and proportionally consolidated
as disclosed in note 321 the group subsequently entered into a spa for the sale of 35 of the interest in the bng contract area 
to knoc
the determined fair values of the assets and liabilities as at the date the interest was transferred back to the group was as follows
book 
values 
’000
loans 
transferred 
’000
fair value 
adjustments 
’000
fair 
values 
’000
unproven oil and gas assets 53552 – 101985 155537
property plant and equipment 279 – – 279
other receivables 5581 23600 – 29181
cash and cash equivalents 136 – – 136
borrowings and other payables 74106 – – 74106
deferred taxation – – 20397 20397
net assets 14558 23600 81588 90630
minority interests 27385
net assets of jv previously held 16600
net assets transferred back to the group 46645
cancellation of funding of obligation not paid by 
canamens 7763
15 of future royalty payment 5240
total 13003
net gain recognised in the income statement 33642
related cash flows
– loans repaid 2500
– cash acquired 136
2364
 future royalty payment to canamens is recorded within other noncurrent payables
as a result of the change in the basis of consolidation of bng ltd llp from the proportional consolidation method to the full 
consolidation basis a release of us  2 million of cumulative translation reserves arose during the period this represents the 
proportion of previously capitalised translation losses attributed to the previously held joint interest now written off during 
the period  47
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
142 bng disposal
during 2009 the company entered into a sale and purchase agreement “spa” to dispose of 35 of its interest in bng ltd 
llp the structure of the deal was in two stages as follows
a stage 1
on 15 january 2009 the group and canamens bng bv part of canamens group signed a farm out agreement for bng ltd 
llp this agreement was amended during 2009 in april july september and december
under the terms of the restated agreement canamens bng bv agreed to purchase 23 of the equity and 23 of the loan 
receivables of bng ltd llp for a total consideration of us  34 million “stage 1” payable to bng energy bv
under the terms of the spa bng energy bv was required to lend “bng loan 1” to bng ltd llp us  27 million of the 
proceeds although the funds were passed down in full by bng energy bv 23 of the repayments were required to be made to 
canamens this loan was restated on completion of stage 2 so that 35 of the loan amount was repayable to canamens with 
the remaining 65 being repayable to bng energy bv
this stage of the transaction was completed on 11 january 2010
b stage 2
additionally under the farmout agreement canamens acquired an option to purchase a further 12 of the equity and the loan 
receivables including bng loan 1 of bng ltd llp for a total consideration of us  23 million “stage 2” payable to bng energy bv
on 30 april 2010 canamens exercised this option
under the terms of the agreement bng energy bv was required to loan “bng loan 2” to bng ltd llp all us  23 million of  
the proceeds although the funds passed down in full by bng energy bv 35 of the repayments were required to be made to 
canamens with the remaining 65 being made to bng energy bv
this stage of the transaction was completed on 30 april 2010
following the completion of stage 2 above the company retained an effective interest in bng ltd llp of 2341
the company subsequently agreed to cancel the spa for the purchase of shares in bng ltd llp by canamens see note 141 
for further information
the loss on disposal of bng ltd llp was determined as follows
stage 1
at date of disposal 
’000
noncurrent assets 134954
inventories 42
trade and other receivables 3869
cash and cash equivalents 352
trade and other payables 43931
noncurrent liabilities 18077
net assets at date of disposal 77209
total consideration 34000
less 23 of net assets on disposal 17758
less transfer of intercompany amounts payable 13234
gain on disposal before the effect of cumulative translation reserve 3008
less release of cumulative translation reserve 10504
loss on disposal 7496 48
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
14 bng reacquisition and disposal continued
142 bng disposal
stage 2
at date of disposal 
’000
noncurrent assets 140312
inventories 441
trade and other receivables 2104
cash and cash equivalents 379
trade and other payables 47377
noncurrent liabilities 18250
net assets at date of disposal 77609
total consideration 23000
less 12 of net assets on disposal 9313
less transfer of intercompany amounts payable 15054
loss on disposal before the effect of cumulative translation reserve 1367
less release of cumulative translation reserve 5480
loss on disposal 6847
the net cash inflow on disposal comprises
cash received 39255
cash disposed of 352
net cash inflow 38903
  the us  159 million release of cumulative translation reserves arose from the disposal of the company’s 35 interest in bng ltd llp to 
canamens this represents the proportion of previously capitalised translation losses attributed to the proportion of interest sold now written off 
during the period 
of the us  57 million purchase consideration us  45 million was withheld by canamens energy bv in order to pay withholding 
tax on the capital gain 
from the date of disposal and until the date of reacquisition bng ltd llp was treated as a jointly controlled entity and 
proportionally consolidated 49
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
15 galaz disposals and acquisition
151 galaz disposal
during 2011 the group entered into a sale and purchase agreement “spa” with lgi to dispose of 40 of its interest in 
galaz and company llp under the terms of the agreement lgi agreed to purchase 40 of the equity for a total 
consideration of us  156 million from the group and agreed to lend galaz and company llp us  344 million to develop 
the field
this transaction completed on 20 january 2011
the gain on disposal of galaz and company llp was determined as follows
at date of disposal
 ’000
total consideration 15600
noncurrent assets 41317
inventories 200
trade and other receivables 12
cash and cash equivalents 2193
trade and other payables 9088
noncurrent liabilities 24689
net assets at date of disposal 9945
less 40 of net assets on disposal 3978
gain on disposal before the effect of cumulative translation reserve 11622
less release of cumulative translation reserve
1
1924
gain on disposal 9698
the net cash inflow on disposal comprises
cash received
2
13723
cash disposed of 2193
net cash inflow 11530
1
  the us  19 million release of cumulative translation reserves arose from the disposal of the company’s 40 interest in galaz and company 
llp to lgi this represents the proportion of previously capitalised translation losses attributed to the proportion of interest sold now 
written off during 2011 
2
  of the us  156 million purchase consideration us  19 million was withheld by lgi in order to pay withholding tax on the capital gain that 
arose in galaz energy bv 
until the date of disposal galaz and company llp was treated as a subsidiary and was fully consolidated into the financial 
statements of the group from the date of disposal galaz and company llp was treated as a jointly controlled entity and 
proportionally consolidated
152 galaz acquisition
on 21 july 2010 galaz energy bv acquired an additional 13 in its subsidiary galaz and company llp for a total 
consideration of us  34 million that increased company’s interest from 50 to 58 the corresponding share of net 
assets of galaz and company llp at the date of acquisition was equal to us  1 million the difference between the 
purchase consideration and net assets was charged directly to the consolidated statement of changes in equity 50
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
16 ravninnoe disposal
during 2011 the group entered into a sale and purchase agreement “spa” to dispose of its remaining 30 interest in ravninnoe 
oil llp under the terms of the agreement beimar oil llp agreed to purchase 30 of the equity for a total consideration of us  26 
million from the group out of us  26 million consideration the group wrote off as bad debt us  12 million during the year
this transaction completed on 22 december 2011
the gain on disposal of ravninnoe oil llp was determined as follows
at date of disposal 
’000
total net consideration 1450
noncurrent assets 31218
inventories 170
trade and other receivables 1276
cash and cash equivalents –
trade and other payables 24171
noncurrent liabilities 23709
net assets at date of disposal 15216
less 30 of net assets on disposal 4564
gain on disposal before the effect of cumulative translation reserve 6014
less release of cumulative translation reserve
1
984
gain on disposal 5030
the net cash inflow on disposal comprises
cash received
2
1450
cash disposed of –
net cash inflow 1450
1
  the us  1 million release of cumulative translation reserves arose from the disposal of the company’s 30 interest in ravninnoe oil llp to  
beimar oil llp this represents the proportion of previously capitalised translation losses attributed to the proportion of interest sold now  
written off during 2011 
2
 out of us  15 million received us  1 million was received in prior years 51
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
until the date of disposal ravninnoe oil llp was treated as a jointly controlled entity and presented as an investment held for 
sale the following major classes of assets and liabilities relating to these operations have been classified as held for sale in  
the consolidated statement of financial position at 31 december 2010 
’000
unproven oil and gas assets 7595
other receivables 664
property plant and equipment 48
inventories 49
cash and cash equivalents 1
8357
’000
trade and other payables 491
borrowings 5747
current provisions 668
6906
1451
an impairment loss of us  182 million and release of corresponding deferred tax of us  15 million on the measurement of  
the disposal group to fair value less cost to sell has been recognised and is included in administrative expenses of continuing 
operations during 2010 ravninnoe oil llp division does not constitute a discontinued operation as it does not represent a 
major line of business or geographical area of operation
from the date of disposal the group does not have any interest in ravninnoe oil llp
17 jointly controlled entity
from 20 january 2011 the group has a 3422 interest in the jointly controlled entity galaz and company llp which has  
been accounted for using the proportional consolidation method the following amounts have been recognised in the group’s 
consolidated statement of financial position relating to this jointly controlled entity
2011
’000
noncurrent assets 16658
current assets 601
total assets 17259
noncurrent liabilities 10925
current liabilities 4399
total liabilities 15324
expenses 895
loss after tax 895
galaz and company llp’s contingent liabilities and capital commitments are disclosed in note 25
until 20 january 2011 galaz and company llp was treated as a subsidiary and was fully consolidated into the group accounts 
in 2010 the group’s 2341 interest in the jointly controlled entity bng ltd llp has been accounted for using the proportional 
consolidation method the following amounts have been recognised in the group’s consolidated statement of financial position 
relating to this jointly controlled entity in the period ended 31 december 2010 52
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
17 jointly controlled entity continued
2010
’000
noncurrent assets 36236
current assets 742
total assets 36978
noncurrent liabilities 10927
current liabilities 10559
total liabilities 21486
expenses 921
loss after tax 921
until 10 may 2011 bng ltd llp was treated as a jointly controlled entity on 10 may 2011 the group received back its 35 
interest in bng ltd llp from canamens and started to treat bng ltd llp as a subsidiary and fully consolidated into the group 
accounts note 14
18 inventories
 
group
2011
’000
company
2011
’000
 group
2010
’000
company
2010
’000
materials and supplies 1689 – 762 –
 1689 – 762 –
materials and supplies are principally comprised of concrete slabs goods and some tubing to be used in the exploration and 
development of the group’s oil and gas properties in kazakhstan all amounts are held at the lower of cost and net realisable value
19 other receivables
 
group
2011
’000
company
2011
’000
group
2010
’000
company 
2010
’000
amounts falling due after one year
advances paid – – 600 –
intercompany receivables – 16261 – 10765
deferred tax asset 3442 3442 – –
other receivables 9242 – 15187 24
amounts due from joint venture 6421 – 33314 –
19105 19703 49101 10789
amounts falling due within one year
advances paid 413 – 132 7
prepayments 80 29 41 39
other receivables 218 39 1575 190
 711 68 1748 236
other receivables falling due after one year includes kazakh vat and an amount of us  54 million 2010 us  5 million in respect 
of a loan facility described in note 312 the carrying amount of other receivables is a reasonable approximation of fair value
at 31 december 2010 other receivables falling after one year includes an amount of us  78 million in respect of an indemnity 
against a loan included within shortterm borrowings as described in note 24 during the year the group signed a novation 
agreement with mr oraziman whereby mr oraziman agreed to release the group from any liability under that loan as a result the 
loan and related indemnity receivable was written off from the group’s books note 24
amounts due from joint venture relate to galaz and company llp and ravninnoe oil llp and are shown net of provision of  
us  181 million 2010us  12 million and bear interest at rates between libor  2 to libor  7  53
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
advances paid relate to amounts paid to third parties for services and materials to be provided post year end 
intercompany receivables are shown net of provision of us  345 million 2010 us  345 million and bear interest rates  
between libor  2 and libor  7 
20 cash and cash equivalents
 
group
2011
’000
company
2011
’000
group
2010
’000
company 
2010
’000
cash at bank and in hand 1546 1067 4959 2194
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 shortterm foreign 
exchange fluctuations all cash is held in floating rate accounts
denomination
group
2011
’000
company
2011
’000
group
2010
’000
company
2010
’000
us dollar 1501 1063 4808 2135
sterling 81 2 51 51
kazakh tenge 3 2 106 8
euro 39 – 6 –
1546 1067 4959 2194
during 2010 for the purpose of the consolidated statement of cash flow cash and cash equivalents included also cash related 
to assets classified as held for sale in the amount of us  1000
21 called up share capital
group and company
number of 
ordinary shares ’000
balance at 31 december 2009 417182165 7772
ordinary shares issued 
1
 15 february 2010 36221 5
ordinary shares issued 
2
9 april 2010 3600000 55
balance at 31 december 2010 420818386 7832
borrowings converted to equity 
3
29 september 2011 188771895 2945
balance at 31 december 2011 609590281 10777
1
 these shares were issued for cash on exercising of warrants
2
 ordinary shares issued to the warrant holder pursuant to the terms of the deeds of the warrant
3
 these shares were issued in exchange for debt conversion as described in note 24
on 28 may 2009 each of the issued ordinary shares of 10p each in the capital of the company were subdivided and redesignated 
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 £10000000 per ordinary share in the capital of the 
company the limited rights attached to the deferred shares which are not being listed or freely transferable render them 
effectively valueless  54
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
22 trade and other payables – current
 
group
2011
’000
company 
2011
’000
group
2010
’000
company 
2010
’000
trade payables 3348 709 2709 321
taxation and social security 190 4 99 36
accruals 283 232 535 500
other payables 3216 – 3518 2
intercompany payables – 3954 – 10855
deferred income – – 50 –
7037 4899 6911 11714
23 purchase consideration received in advance
group
2011
’000
company
2011
’000
group
2010
’000
company 
2010
’000
purchase consideration received in advance – – 14213 –
– – 14213 –
as at 31 december 2010 the purchase consideration received in advance of us  137 million relates to amounts received in 
advance from lgi in respect of the acquisition of 40 of galaz and company llp 
24 shortterm borrowings
 
group
2011
’000
company
2011
’000
group
2010
’000
company 
2010
’000
interest free loan from mr oraziman a – – 3960 3960
interest bearing loan from mr oraziman b – – 7961 –
loan from raditie c 2500 – – –
other borrowings 1283 500 2088 500
3783 500 14009 4460
a  at 31 december 2010 the principal amount of us  46 million represents an interest free loan from mr oraziman that  
was initially repayable on 2 july 2010 on 14 may 2010 mr oraziman agreed to extend the repayment of this loan to july 2011 as 
a result the loan was fair valued at this date and subsequently accounted for at amortised cost on 26 april 2011 the loan 
agreement was amended by extending its repayment terms to july 2012 also the loan became interest bearing with an annual 
rate of 12 on september 29 2011 the company has agreed with mr oraziman that us  94 million of the company’s 
indebtedness to him and companies with which he is associated be converted into 188771895 of new roxi shares at a 
conversion price of 32p per share note 21 out of us  94 million company’s indebtedness at 29 september 2011  
us  46 million is represented by this loan the residual part of converted loans relates to vertom note 26  
b  at 31 december 2010 the us  5 million interest bearing loan from mr oraziman was repayable together with accrued 
interest in july 2011 this loan bears interest at libor 7 the loan is the subject of the baverstock indemnity described in 
note 312 on 26 april 2011 the loan agreement was amended by extending its repayment terms to july 2012 during 2011 
the group signed a novation agreement with mr oraziman whereby mr oraziman agreed to release the group from any 
liability under this loan agreement as a result the loan and related indemnity receivable was written off from the group’s 
books note 19
c  the group entered into a shortterm interest free loan arrangement with raditie nv on 10 november 2011 whereby raditie nv lent 
us  25 million to the group raditie nv has the right to convert this loan to 30 in munaily kazakhstan llp 55
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
25 provisions
group only
employee 
holiday 
provision
liabilities 
under social 
development 
program
abandonment 
fund
2010 
total 
’000
balance at 1 january 2010 1304 5256 1868 8428
increase in provision 103  41 219  363
paid in year 211 837 – 1048
unwinding of discount – 26 63 89
change in estimates 799 1180 1283 3262
foreign exchange difference 7 68 10 85
reclassification to assets held for sale note 16 4 444 220 668
disposal of subsidiary 62 709 197 968
addition of joint venture 16 166 46 228
balance at 31 december 2010 354 2387 506 3247
noncurrent provisions – 189 506 695
current provisions 354 2198 – 2552
balance at 31 december 2010 354 2387 506 3247
group only
employee 
holiday 
provision
liabilities 
under social 
development 
program
abandonment 
fund
2011 
total 
’000
balance at 1 january 2011 354 2387 506 3247
increase in provision 195 482 398 685
paid in year 18 137 – 155
unwinding of discount – 36 54 90
foreign exchange difference 3 24 14 41
acquisition of subsidiary note 14 47 1114 196 1357
disposal of subsidiary 12 80 604 696
addition of joint venture 4 28 207 239
balance at 31 december 2011 177 3806 743 4726
noncurrent provisions – 589 743 1332
current provisions 177 3217 – 3394
balance at 31 december 2011 177 3806 743 4726 56
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
25 provisions continued
liabilities and commitments in relation to subsoil use contracts are disclosed below 
a beibars munai llp
during 2007 beibars munai llp a subsidiary undertaking and the ministry of energy and mineral resources of the republic of 
kazakhstan signed a contract for oil exploration within the block xxxvii10 in mangistauskaya oblast contract 2287 the 
contract term expired in january 2012 and the group has applied to the ministry of oil and gas for the extension of the beibars 
exploration license given the force major situation
in accordance with the terms of the contract beibars munai llp committed to the following
•	 investing not less that 5 of annual capital expenditures on exploration during the exploration period in professional  
training of kazakhstani personnel engaged in work under the contract
•	 investing us  1 million to the development of astana city during the second year of the contact term
•	 investing us  1 million in equal tranches over the exploration period in the social development in the region and
•	 transferring on an annual basis 1 of exploration expenditures to a liquidation fund through a special deposit account  
in a bank located within the republic of kazakhstan
beibars munai llp did not fulfil its obligations under the social program in 2011 and 2010 due to forcemajor circumstances  
see note 11
 unpaid amounts in respect of the above social obligations are included within liabilities of social programs above
b munaily kazakhstan llp
munaily kazakhstan llp a subsidiary signed a contract  1646 dated 31 january 2005 with the ministry of energy and mineral 
resources of rk for the exploration and extraction of hydrocarbons on munaily deposit located in the atyrau region
the contract is valid for 25 years on 13 july 2011 munaily kazakhstan llp and a competent authority signed addendum no 5 
to the subsoil use contract which stipulates the oil production period to be 15 years to 2025 and approves the minimum work 
program for the production period
in accordance with the terms of the contract and addendums munaily kazakhstan llp remains committed to the following
•	 social development of atyrau region – us  600000 over the period of the contract
•	 to allocate us  400000 to the astana city development program
•	 professional education of engaged kazakhstan personnel – not less than 1 of total investments
•	 transferring on an annual basis 1 of exploration expenditures to a liquidation fund through a special deposit account  
in a bank located within the republic of kazakhstan 
•	 to fund the minimum work program during the 15 year production period of us  293 million and
•	 once the production stage begins to pay the remaining part of historical costs of us  16 million within 10 years in  
equal quarterly instalments 
 unpaid amounts in respect of the above social obligations are included within liabilities for social programs above
 unpaid amounts in respect of the above historical obligations are included within other noncurrent payables 57
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
c bng ltd llp 
bng ltd llp a subsidiary signed a contract 2392 dated 7 june 2007 with the ministry of energy and mineral resources of rk 
for exploration at airshagyl deposit located in mangistau region under addendum no 1 dated 17 april 2008 the contract area 
was increased the contract was valid for 4 years and expired on 7 june 2011 addendum no 6 to the subsoil use contract for 
extension of exploration period up to june 2013 was obtained on 13 july 2011
in accordance with the terms of the contract and addendums bng ltd llp remains committed to the following
•	 investing us  5 million over the initial exploration period in the social development in the region
•	 for the twoyear extension period up to 2013 us  625000 per annum should be invested in the social development of  
the region
•	 if a production license is granted a further us  25 million should be invested in the social development of the region
•	 to fund minimum work program during the extended exploration period of us  173 million
•	 investing not less than 1 of total investments in professional training of kazakhstani personnel engaged in work under  
the contract and
•	 transferring on an annual basis 1 of exploration expenditures to a liquidation fund through a special deposit account in  
a bank located within the republic of kazakhstan 
 unpaid amounts in respect of the above social obligations are included within liabilities for social programs above
d galaz and company llp
galaz and company llp a subsidiary undertaking signed an exploration contract 593 dated 12 december 2000 in respect of 
the northwest konys deposit located in kyzylorda region on 10 january 2011 the ministry of oil and gas extended the 
contract territory under exploration of galaz and company llp and on 16 february 2011 the exploration contract of galaz and 
company llp was granted an extension of two years to 14 may 2013
in accordance with the terms of the contract and addendums galaz and company llp remains committed to the following
•	 investing 3 of total exploration expenditures for the social development of the region and 2 for social infrastructure 
development with a further us  120000 to be allocated to the kyzylorda contract under annex no 2 in accordance  
with addendum no 5 to allocate additional us  302030 for the social development of the region by the end of 2011
•	 investing not less than 1 of total investments in professional training of kazakhstani personnel engaged in work under  
the contract
•	 to create a liquidation fund in an amount of us  179580 by providing financial and bank guarantees
•	 to pay royalties of 25 of hydrocarbons volume produced in the event of test production of hydrocarbons under the 
kzylorda contract and
•	 to fund a minimum work program during the extended exploration period of us  239 million
 unpaid amounts in respect of the above social obligations are included within liabilities for social program above 58
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
26 borrowings
 
group
2011
’000
company
2011
’000
group
2010
’000
company
2010
’000
loan from jv partner to bng ltd llp a – – 5514 –
loan from jv partner to bng energy bv b – – 1926 –
loan from lgi c 9389 – 20378 –
loan from vertom d 2728 2728 – –
12117 2728 27818 –
a  as at 31 december 2010 the amount represented group’s share of debt owed by bng ltd llp to canamens as a result of 
its acquisition of 35 interest in bng ltd llp on 10 may 2011 the group received back its 35 interest in bng ltd llp 
from canamens as well as canamens’s share of loans in bng ltd llp note 14 
b  as at 31 december 2010 the loan due to canamens represented the group’s share of debt owed by bng energy bv to 
canamens as a result of its acquisition of 35 interest in bng ltd llp on 10 may 2011 the group received back its 35  
interest in bng ltd llp from canamens as well as canamens’s share of loans in bng energy bv note 14
c  the loan due to lgi represents the group’s share of debt owed by galaz and company llp to lgi as a result of its 
acquisition of 40 interest in galaz and company llp as at 31 december 2011 and 2010
d  on 26 april 2011 the group entered into a two year unsecured loan facility agreement with vertom international nv “vertom” 
whereby vertom agreed to lend up to us  6 million to the group with an associated interest of 12 per annum  
the loan was repayable out of the proceeds from subsequent farmout arrangements or from first production from its 
operating assets on 29 september 2011 the company has agreed with mr oraziman that us  94 million of the company’s 
indebtedness to him and companies with which he is associated be converted into 188771895 of new roxi shares at a 
conversion price of 32p per share out of us  94 million company’s indebtedness at 29 september 2011 us  48 million  
is represented by vertom loan the residual part of converted loans relates to mr oraziman loan note 24 
as at 31 december 2011 the outstanding amount is represented by a two year loan facility with vertom entered by the company 
on 29 september 2011 whereby vertom agreed to lend up to us  5 million to the company with an associated interest of 12 
per annum the company has offered vertom security over its investments in its operating assets in respect to this loan facility
subsequently on 30 april 2012 the group extended the term of the loan facility arrangement with vertom for a further two years 
to 30 april 2014 and at the same time increased the facility amount to us  7 million note 322 59
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
27 deferred tax
deferred tax liabilities comprise
group 
2011 
’000
 group 
2010 
’000
deferred tax on exploration and evaluation assets acquired 8953 8725
8953 8725
in accordance with ias 12 the group recognises deferred taxation on fair value uplifts to its oil and gas projects arising on 
acquisition these liabilities reverse as the fair value uplifts are depleted or impaired
the movement on deferred tax liabilities was as follows
group 
2011 
’000
group 
2010 
’000
at beginning of the period 8725 20010
acquisition of subsidiary 15395 –
foreign exchange 324 50
increase in tax rate – 1687
disposal of subsidiary 3722 15052
recognition of joint venture 1274 3524
impairment of oil and gas asset 12395 1494
 8953 8725
the group also has accumulated estimated tax losses of approximately us  82 million 2010 us  40 million available  
to carry forward and offset against future profits this represents an unprovided deferred tax asset of approximately 
us  16 million 2010 us  8 million
the increase of deferred tax liability in 2010 mainly related to changes in future tax rates and represented the directors’ best 
estimate of future tax rates in kazakhstan of 20 note 9 60
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
28 share option scheme
during the year the company issued equitysettled sharebased instruments to its directors and certain employees equity
settled sharebased instruments have been measured at fair value at the date of grant the fair value determined at the grant 
date of the equitysettled sharebased instrument is expensed on a straightline basis over the vesting period based on an 
estimate of the shares that will eventually vest options generally vest in four equal tranches over the two years following grant
share options
number of 
options
weighted 
average 
exercise 
price in 
pence p 
per share
as at 1 january 2010 37075533 47
granted 2950000 12
expired 7093231 65
expired 5786338 38
expired 2314535 12
as at 31 december 2010 24831429 43
granted 13190000 13
granted 18500000 4
expired 200000 12
as at 31 december 2011 56321429 23
there were 34857005 2010 18901956 share options exercisable at the end of the year with a weighted average exercise 
price of 32p 2010 45p
the options were issued to directors and employees as follows
share options
number 
of options 
granted
number 
of options 
expired reclassifications
total options 
outstanding
weighted 
average 
exercise 
price in 
pence p 
per share expiry
as at 31 december 2009 38868226 1792693 – 37075533 47
directors 2950000 – 20224605 11160592 38
15 february 2020
and 
22 june 2020
employees and others – 15194104 20224605 13670837 50 –
as at 31 december 2010 41818226 16986797 – 24831429 43
directors 28340000 – – 39500592 16
12 january 2021 
and
 14 december 2021
employees and others 3350000 200000 – 16820837 40
12 january 2021 
1 may 2021 
and 
14 december 2021
as at 31 december 2011 73508226 17186797 – 56321429 23 61
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
the range of exercise prices of share options outstanding at the year end is 4p–65p 2010 12–65p the weighted average 
remaining contractual life of share options outstanding at the end of the year is 823 years 2010 751 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 riskfree interest rates the expected volatility was determined based on both the 
volatility of the company’s share price since flotation and the volatility of similar quoted companies employee exit rates and the 
expected period from vesting to exercise are also considered based on historical experience the principal assumptions are
2011 2010
expected volatility  80 80
expected life periods 3 5
riskfree rate  285 284
fair value per option p 17 46
29 warrants issued
following table summarises warrants outstanding at the end of the year
number ’000
description grant exercised year end grant exercised
income 
statement 
effect year end expiry date
gem global yield  
fund limited 
1
– – 9000000 – – 225 84
26 may 
2014
altius energy 
2
– – – – – 23 –
31 march
 2011
total – – 9000000 – – 248 84
1
  the company entered into a £15 million equity line of credit with gem global fund limited in return for 9000000 warrants the company can 
require gem to subscribe for shares over a 3 year period from may 2009 at an issue price of 90 of an average close bid price for the 15 trading 
days following the delivery of the subscription notice the warrants were initially recognised at a fair value of us  11 million and have been 
revalued at the year end to us  84000 2010 us  309000 with the difference being credited to the income statement due to the exercise 
price of the warrants being in sterling and the functional currency being us dollar 
2
  mr oraziman agreed to subordinate 146 million of loans made to the group to the us  5 million loan entered into with altius energy limited 
us  10 million of the loans were restated on similar terms as altius energy limited’s loan including the issue of 36000000 warrants which 
were valued at us  3 million this amount has reduced the fair value of us  10 million loan to galaz energy bv on 29 june 2009 mr oraziman 
transferred his 36000000 warrants to altius energy limited during 2009 and 2010 6732500 warrants were exercised also pursuant to the 
terms of the deeds of warrant 56335 additional warrants were issued during 2010 on 31 march 2011 29323835 warrants issued to altius 
energy had not been exercised and expired the group wrote off its warranty liability to altius energy limited’s to nil 
during the period ended 31 december 2007 the company issued warrants over 10023112 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 75 million 
shares may be exercised at any time prior to 21 may 2017 while the remaining 25 million shares expired on 21 may 2010 
resulted to movement in the consolidated and parent statements of changes in equity
total number of warrants that remained outstanding at the year end was 16500000 2010 45823835  62
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
30 financial instrument risk exposure and management
in common with all other businesses the group and company are exposed to risks that arise from its use of financial instruments 
this note describes the group and company’s objectives policies and processes for managing those risks and the methods used 
to measure them further quantitative information in respect of these risks is presented throughout these financial statements
the significant accounting policies regarding financial instruments are disclosed in note 1
there have been no substantive changes in the group or company’s exposure to financial instrument risks its objectives policies 
and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in 
this note
principle financial instruments
the principle financial instruments used by the group and company from which financial instrument risk arises are as follows
financial assets
group 
2011 
’000
company 
2011 
’000
group 
2010 
’000
company 
2010 
’000
 loans and receivables
intercompany receivables – 16261 – 10765 
amounts due from joint venture 6421 – 33314 –
other receivables – current 218 39 9932  190 
other receivables – noncurrent 5752 1 12990  1 
cash and cash equivalents 1546 1067 4959  2194 
 13937 17368 61195  13150
 this amount in 2010 includes assets in disposal group classified as held for sale
as at 31 december 2011 and 2010 the carrying value of available for sale financial assets for the group and company was us  nil
financial liabilities
group 
2011 
’000
company 
2011 
’000
group 
2010 
’000
company 
2010 
’000
 financial liabilities at amortised cost
trade and other payables 6847 4895 13667  11697 
other payables – noncurrent 8984 5240 1019 – 
borrowings – current 3783 500 14009  4460 
borrowings – noncurrent 12117 2728 27818 – 
purchase consideration received in advance – – 14213 – 
 31731 13363 70726  16157 
 this amount in 2010 includes liabilities directly associated with assets in disposal group classified as held for sale
as at 31 december 2011 the carrying value of financial liabilities measured at fair value through profit and loss for the group and 
company was us  84000 2010 group and company us  332000 these are described in note 29 63
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
fair value of financial assets and liabilities
at 31 december 2010 and 2011 the fair value and the book value of the group and company’s financial assets and liabilities 
was as follows
group and company
fair value measurements at 31 december 2011
level 1 
’000
level 2 
’000
level 3 
’000
financial asset – – –
available for sale – – –
financial liability – – 84
warrant liability – – 84
group and company
fair value measurements at 31 december 2010
level 1 
’000
level 2 
’000
level 3 
’000
financial asset – – –
available for sale – – –
financial liability – – 332
warrant liability – – 332
the fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a 
current transaction between willing parties other than in a forced or liquidation sale
the available for sale asset was initially recognised to fair value the benefit derived from the group having access to the gem 
facility which can be utilised immediately at the request of the company initially the asset was recognised the same value as 
the underlying warrants see note 291 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 blackscholes model based on the underlying contract 
terms the fair value is recalculated when warrants are issued exercised expired or at year end utilising the blackscholes 
model the model takes into account the effect of financial assumptions including the future share price volatility riskfree 
interest rates and expected life  64
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
30 financial instrument risk exposure and management continued
during 2011 and 2010 the movement in group and company’s financial assets and liabilities was as follows
financial asset
2011 
’000
2010 
’000
balance at the beginning of the year – 1106
change in value taken to the income statement – 1106
balance at 31 december – –
financial liability
2011 
’000
2010 
’000
balance at the beginning of the year 332 1630
exercise of warrant taken to retained earnings – 92
change in value taken to the income statement 248 1206
balance at 31 december 84 332
principal financial instruments
the principal financial instruments used by the group and company from which financial instrument risk arises are as follows
•	 other receivables
•	 cash at bank
•	 trade and other payables
•	 borrowings
general objectives policies and processes
the board has overall responsibility for the determination of the group and company’s risk management objectives and policies 
and whilst retaining ultimate responsibility for them it has delegated the authority for designing and operating processes that 
ensure the effective implementation of the objectives and policies to the group and company’s finance function the board 
receives regular reports from the finance function through which it reviews the effectiveness of the processes put in place and 
the appropriateness of the objectives and policies it sets
the overall objective of the board is to set policies that seek to reduce risk as far as possible without unduly affecting the  
group and company’s competitiveness and flexibility further details regarding these policies are set out below
credit risk
credit risk arises principally from the group’s other receivables it is the risk that the counterparty fails to discharge its  
obligation in respect of the instrument the maximum exposure to credit risk equals the carrying value of these items in  
the financial statements 
when commercial exploitation commences sales will only be made to customers with appropriate credit rating 
credit risk with cash and cash equivalents is reduced by placing funds with banks with high credit ratings 65
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
capital
the company and group define capital as share capital share premium deferred shares shares to be issued capital 
contribution reserve other reserves retained earnings and borrowings in managing its capital the group’s primary objective is 
to provide a return for its equity shareholders through capital growth going forward the group will seek to maintain a gearing 
ratio that balances risks and returns at an acceptable level and also to maintain a sufficient funding base to enable the group to 
meet its working capital and strategic investment needs in making decisions to adjust its capital structure to achieve these 
aims either through new share issues or the issue of debt the group considers not only its shortterm position but also its 
longterm 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 farmouts 
sufficient to meet the next phase of exploration and where relevant development expenditure 
the board receives cash flow projections on a periodic basis as well as information regarding cash balances the board will not 
commit to material expenditure in respect of its ongoing exploration programmes prior to being satisfied that sufficient funding 
is available to the group to finance the planned programmes
trade and other payables are repayable on demand the purchase consideration received in advance was settled during 2011 
for maturity dates of current and noncurrent 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  150000  
2010 us  378000
there is no significant interest rate risk on the cash and cash equivalents as the group does not have significant surplus cash 
balances to hold in interest bearing accounts
currency risk
the group and company’s policy is where possible to allow group entities to settle liabilities denominated in their functional 
currency primarily us dollar and kazakh tenge in that currency where group or company entities have liabilities denominated 
in a currency other than their functional currency and have insufficient reserves of that currency to settle them cash already 
denominated in that currency will where possible be transferred from elsewhere within the group
in order to monitor the continuing effectiveness of this policy the board receives a periodic forecast analysed by the major 
currencies held by the group and company
the group and company is primarily exposed to currency risk on purchases made from suppliers in kazakhstan as it is not 
possible for the group or company to transact in kazakh tenge outside of kazakhstan the finance team along with its 
advisors carefully monitors movements in the us dollar  kazakh tenge rate and chooses the most beneficial times for 
transferring monies to its subsidiaries whilst ensuring that they have sufficient funds to continue its operations the currency  
risk relating to tenge is insignificant 66
notes to the financial statements continued
roxi petroleum plc 
annual report and accounts 2011
31 related party transactions
the company has no ultimate controlling party
311 acquisition of eragon petroleum plc now eragon petroleum limited “eragon”
the eragon acquisition in march 2008 details of which were set out in the company’s 2008 annual report and accounts 
comprised certain related party transactions because a director of the company mr oraziman had a beneficial interest  
in 425 currently 6288 of the issued capital of baverstock gmbh “baverstock”
as a result of the eragon acquisition the group entered into related party transactions which include but are not limited to  
the following transactions
312 loan agreements 
a loan from mr oraziman as at the date of the eragon acquisition
at the date of the eragon acquisition in galaz energy bv there was a us  10 million loan borrowed from mr oraziman  
in july 2007 initially repayable together with interest accrued at libor plus 3 in july 2009 as at 31 december 2010 the 
outstanding loan in amount of us  5 million remained payable from the group and has been classified within shortterm 
borrowings note 24 during 2011 the group signed a novation agreement with mr oraziman whereby mr oraziman agreed 
to release the group from any liability under this loan agreement
under an agreement between the company and baverstock made on 30 january 2008 baverstock agreed to take 
responsibility for the payments of the sums due under that loan and to fully and effectively discharge indemnify and hold 
harmless the company eragon petroleum limited and as applicable galaz energy bv and bng energy bv from any 
obligation or liability arising from the terms of or in connection with of the loan agreement accordingly an asset equal to 
the fair value of the liability under the loan agreement has been recognised on the acquisition of eragon and wrote off 
during 2011 as per novation agreement discussed above note 19
in august 2010 galaz energy bv has provided baverstock with a loan facility of up to us  10 million at libor 7 the 
amounts borrowed under this loan agreement should be used exclusively for repayment of mr oraziman’s us  10 million 
loan received in july 2007 the facility is to be repaid by paying back future dividends receivable by baverstock from eragon 
in december 2010 the first tranche of us  5 million under the facility agreement was transferred to mr oraziman directly by 
galaz energy bv to be repaid by baverstock note 19 
b other loans from mr oraziman 
in january 2010 altius energy one of the shareholders of the company provided a loan of us  3 million to the company 
in order to repay the loan of us  3 million on time the group entered into a loan arrangement with mr oraziman on  
19 march 2010 for us  3 million which was lent on an interest free basis to galaz and company llp and used to repay  
the altius energy loan the loan was repaid to mr oraziman on 12 may 2010
the company had other loans outstanding as at 31 december 2010 with mr oraziman details of which have been 
summarised in note 24 
c vertom 
during the year ended 31 december 2011 the company entered into two loan facilities with vertom international nv details 
of which have been summarised in note 26 a director of the company mr oraziman is a director of and holds  
50 of the issued share capital of both vertom international nv “vertom” and vertom international bv 67
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
d transactions with canamens
as part of the joint venture entered into by the group with canamens in relation to bng ltd llp details of which are set  
out in note 14 various loans were provided to bng ltd llp and bng bv that were settled to the group as part of its 
reacquisition of bng ltd llp note 14 and 26
e loans in relation to lgi 
as described in notes 15 and 26 galaz and company llp and lg international entered into a facility agreement of  
us  344 million pursuant to the spa entered into on 27 april 2010 lg international is a 40 shareholder in galaz and 
company llp
f raditie loan
during the year ended 31 december 2011 the company entered into a loan facility with one of its shareholder raditie nv  
details of which have been summarised in note 24 
313 key management remuneration
key management comprises the directors and details of their remuneration are set out in note 6 
in september 2008 the directors and senior management agreed to deferral of their salaries and fees until such time that  
the restatement and the refund would not materially affect the company’s ability to continue to comply with existing work 
programme commitments this policy continued throughout 2010 and 2011
as at 31 december 2011 the amount due to the directors in respect of this deferral was approximately us  51334  
2010 us  60000
32 events after the reporting period 
321 bng spa
on 19 march 2012 bng energy bv entered into a spa with bakmura llp the “bakmura” a wholly owned subsidiary of knoc 
kaz bv which in turn is wholly owned by knoc for the sale of 35 of the interest in the bng contract area for an initial cash 
consideration of us  5 million plus an obligation to fund a further us  25 million of the bng work programme in consideration 
for funding the work programme bakmura will be entitled to recoup its investment from future production from the license in 
priority to payments due to the group
under this spa the group has given bakmura an option to transfer its 32 interest in galaz  company llp the “galaz option” 
to bakmura the galaz option is exercisable before 7 june 2013 if the oil exploration project in the bng contract area turns out to 
be economically not viable and bakmura has funded the current bng work commitments in full as part of the galaz option 
bakmura is also obliged to direct any unspent portion of the us  25 million bng work programme funding to galaz energy bv
should bakmura exercise the galaz option bakmura would be required to pay galaz energy bv an additional us  5 million the 
galaz option can be exercised from 7 april 2013 and the consent of the kazakh authorities would also be required
following the exercise of the galaz option group’s interest in the bng contract area license would be returned back to 5841 
while group’s interest in the galaz contract area is expected to decrease to 1534 
322 loan due to vertom international nv
on 30 april 2012 the group extended the term of the loan facility arrangement with vertom international nv for a further two years 
to 30 april 2014 and at the same time increased the facility amount to us  7 million
323 assignment of debts by bng energy bv 
with effect from 1 january 2012 the group undertook further cost reduction initiative as part of its drive to create greater efficiency 
within the group’s loan finance structure and as a result bng energy bv transferred the majority of its debt to roxi petroleum plc 
the ultimate funding entity of the bng ltd llp operations
324 financial aid from mr oraziman
during april 2012 mr oraziman has provided the group with the shortterm interest free financial aid for a total amount of  
us  05 million 68
roxi petroleum plc 
annual report and accounts 2011
company information
directors
mr c carver 
nonexecutive chairman
mr d wilkes 
chief executive officer
mr j hyunsik 
chief operating officer
mr k oraziman 
executive director
mr e limerick
nonexecutive director
company secretary 
london registrars plc
registered office and 
business address 
4th floor 
haines house 
21 john street 
london  
wc1n 2bp
company number 
5966431
nominated adviser
strand hanson limited
26 mount row 
mayfair 
london 
w1k 3sq
broker 
renaissance capital limited
1 angel court 
copthall avenue 
london  
ec2r 7hj
solicitors  
mccarthy tetrault
5 old bailey 
2nd floor 
london 
ec4m 7ba
chadbourne  parke llp
43 dostyk avenue 
almaty 050010 
kazakhstan
puxon murray llp
one royal exchange avenue 
london 
ec3v 3lt
auditors
bdo llp
55 baker street 
london 
w1u 7eu
share register
capita registrars
northern house 
woodsome park 
fenay bridge 
huddersfield 
hd8 0la
public relations
buchanan communications
107 cheapside 
london 
ec2v 6dn
principal banker
citibank kazakhstan
park palace 
building a 
2nd floor 
41 kazibek bi str 
almaty 050010  
kazakhstan about roxi
roxi has interests in four oil assets in kazakhstan one has 
already commenced production and production from another two 
is expected later in the year
between now and the end of the year a further two deep wells 
and four shallow wells are planned
bng 
2 
operating wells
beibars 
167km
2
 
exploration acreage
galaz 
4 
operating wells
uralsk
atyrau
kyzylorda
shymkent
taraz
almaty
karaganda
astana
pavalodar
ust kamenogorsk
munaily 
1 
operating well
 city
 exploration
 discovery
 production
01 highlights
02 year in review
02 review of operations
05 glossary
06 timeline
08 business review
08 chairman’s statement
10 chief executive’s statement
14 governance
14 board of directors
16 directors’ report and business review
20 remuneration committee report
23 report on corporate governance
24 financial statements
24 independent auditors’ report
25 consolidated income statement
26 consolidated statement of comprehensive income
27 consolidated statement of changes in equity
28 parent company statement of changes in equity
29 consolidated and parent company statement  
of financial position
30 consolidated and parent company  
cashflow statements
31 notes to the financial statements
68 company information
roxi petroleum plc 
annual report and accounts 2011 69
business review year in review highlights
roxi petroleum plc 
annual report and accounts 2011
governance company information financial statements transition to production
roxi petroleum plc
annual report and accounts 2011
annual report and accounts 2011
registered office and 
business address 
4th floor 
haines house 
21 john street 
london  
wc1n 2bp


Summary:
 10
roxi petroleum plc 
annual report and accounts 2011
chief executive’s statement
update
roxi’s effective interest in the following assets was as follows
asset
interest at  
1 january 
2011
interest at  
31 december 
2011
bng ltd llp 2341 5841
galaz and company llp 5782 3422
munailly kazakhstan llp 5841 5841
beibars munai llp 50 50
we are very close now to achieving our primary goal of 
transitioning three of our assets into production galaz was 
our first asset to commence production in january 2012 the 
revenue from future production will help finance the ongoing 
fixed costs as well as contribute towards the development 
costs of each of the assets going forward this represents  
a significant milestone for roxi and will significantly  
reduce the financial risks associated with being a purely 
exploration company during a period of volatility within  
world financial markets 
bng
we faced some challenges on bng during 2011 with our 
partner canamens deciding to withdraw from kazakhstan  
and its participation in bng having invested approximately  
us  38 million into exploring one of the smaller prospects on 
the bng acreage south yelemes canamens departure in the 
first quarter 2011 resulted in roxi’s effective interest in bng 
increasing from 2341 per cent to 5841 per cent yet at the 
same time it left us with a shortfall in funding for bng for 
2011 roxi sought additional short term funding from one of 
its shareholders vertom international bv to continue with the 
exploration and development of yelemes until such time that 
we secured an additional farmin partner for bng
in march 2012 we agreed terms on the farmout of a 35 per 
cent interest in the bng license to a subsidiary of the korean 
national oil company “knoc” the deal encompasses  
us  30 million being invested of which us  5 million will  
be paid to bng llp the current operator of the airshagil 
license and subsidiary of roxi with a further us  25 million 
funding being provided to finance the current license 
obligations including the drilling of two deep pre salt back 
to back wells on the license area at the same time knoc 
will enter into an option and pledge agreement over 32 per 
cent of the interest in galaz ‘the galaz interest” knoc will 
have the option to elect to transfer its interest from 35 per 
cent of bng to 32 per cent of galaz but only after fulfilling 
its funding obligation towards the bng work obligation 
should knoc elect to exercise their option for the galaz 
interest there will be an associated option price of us  5 
million that will have to be paid as consideration to galaz 
energy bv a subsidiary of roxi 
this represents a significant deal for roxi and we welcome 
knoc as partners to this strategic project for us knoc will 
be appointed as operator over our joint interest in the bng 
contract area this farmin arrangement will enable us to 
explore some of the deeper prospects within the bng 
territory where we believe the greater potential and value 
exists for our shareholders
bng engaged gaffney cline  associates “gca” to 
undertake a technical audit of the bng license area and 
subsequently pgs to undertake depth migration work 
based on the 3d seismic work carried out in 2009 and 
2010 the work of gca resulted in confirming total unrisked 
resources of 900 million barrels from 37 prospects and 
leads mapped from the 3d seismic work undertaken in 
2009 and 2010 the report of gca also confirmed risked 
resources of 202 million barrels as well as mostlikely 
contingent resources of 13 million barrels on south 
yelemes the depth migration work that was carried out by 
pgs enables bng to gain a greater understanding of some  
of the deeper prospects yet to be explored bng now 
plans together with its new partner knoc to drill two 
presalt wells into the deeper horizons as part of its  
current work obligation where we believe the greater 
potential in bng exists
bng recently received the necessary licences to permit pilot 
production to commence and is now in the process of putting 
facilities in place to recommence production from wells 54 
we have now achieved the transition from exploration to 
production and along with our new partners lgi and knoc  
are looking forward to developing our core assets to bring 
further value to our shareholders 11
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
and 805 that discovered oil on south yelemes in 2010 both 
these wells were drilled and tested before being shut in 
pending receipt of the required licenses to commence pilot 
production the wells previously flowed at 70 and 140 bopd 
during the period of test production in february 2012 bng 
completed the drilling of well 136 to a test depth of 3008 
metres and completed the wire logging oil shows were 
encountered between 2442 and 3008 metres the evaluation 
and testing of well 136 and the commencement of pilot 
production on south yelemes will be completed by our  
new operator for bng knoc
galaz
as a result of the completion of the farmout deal with lg 
international “lgi” in the first quarter 2011 our effective 
interest in galaz reduced from 5782 per cent to 3422 per 
cent with lgi obtaining a 40 per cent interest in galaz in 
return for a us  50 million deal comprising a combination  
of assigned debt future funding and purchase consideration 
to roxi secondly lgi completed a reservoir study with 
schlumberger and have since developed a drilling program 
that will prioritise drilling appraisal and exploratory wells to 
enable further reserves to transition from p2 to p1 
classification the first two of the planned new appraisal wells 
were drilled in december 2011 to a depth of 1500 metres 
although the results from testing these two wells were 
disappointing it did provide some useful information on the 
reserves in place on nw konys we have recently spudded 
well nk 7 in the north channel and we are expecting that this 
will bring more positive news for galaz
galaz also received all licenses necessary to permit pilot 
production to commence enabling galaz to put well nk6 
into production in january 2012 average production from this 
well has been 155 bopd to date this well was one of five wells 
drilled in 2009 when oil was first discovered on nw konys 
oil production is currently being transported to one of our 
neighbouring fields where it is sold at domestic oil prices until 
such time as production increases to levels sufficient to export 
other assets
roxi’s other assets comprise interests in beibars 50 per cent 
and munaily 5841 per cent at beibars the military polygon 
is still reserving use of the field for exercises we have applied 
for existing exploration license to be extended given that our 
ability to complete works at the territory have been impaired 
by the force majeure situation we plan to farmout part of our 
interest in beibars to an investor willing to fund the drilling of 
exploratory wells that will enable us to assess the potential of 
this asset once the military use has been removed
after a long period of negotiation on munaily roxi came to an 
agreement to cancel the sale of its interest to the previous 
buyer bt corporation this enabled roxi to retain its effective 
interest of 5841 per cent in munaily in return roxi agreed to 
return all funds paid by the former buyer including an amount 
for the cost of the well the buyer drilled on munaily in 2009 
roxi financed this by obtaining a loan of us  25 million from 
one of its shareholders radite nv this loan is secured against 
a 30 per cent interest in munaily munaily has a 15 year 
production licence in place and the company plans now to 
commence production from its well h1 after installing facilities 
in the field the well previously flowed at 80 bopd during its test 
production phase in addition the company plans to drill a 
further 4 production wells over the next two years 
financing arrangements
we faced some difficult challenges in 2011 to fund the 
ongoing work programme on bng with our partner canamens 
taking the decision to exit operations from kazakhstan early 
in the year with no external institutional debt on the balance 
sheet we were able to negotiate a series of short term funding 
arrangements with our principal shareholder including 
converting some of his existing debt to equity to help 
navigate the business to a point where we could secure a new 
farmin partner for bng as well as ensuring we continued to 
meet our ongoing work obligations on this core asset this 
enabled us to commence the drilling of well 136 in the final 
quarter 2011 and start putting in place facilities to commence 
pilot production 12
roxi petroleum plc 
annual report and accounts 2011
these ongoing financing challenges have led the board to 
reconsider what further restructuring is needed to ensure the 
business is able to sustain its activity until production 
commences across all its assets the chairman has indicated 
in his report that the board plans to undertake management 
restructuring through a combination of changing roles or 
implementing pay cuts at this critical juncture for the 
company i fully support these changes as i believe they will 
enable the company to successfully transition to production 
and ensure a self financing business model is achieved 
in addition to these initiatives the recent us  30 million 
farmout of interest in bng to knoc will provide the 
additional financing needed for bng and its partner to 
complete the required work programme on the bng license 
for the period to june 2013 as well as meet some of the 
working capital needs of the group on 30 april 2012 roxi 
negotiated an increase in the loan facility arrangement with 
vertom international nv to us 7 million this will be used to 
finance the ongoing work obligations on galaz and munaily  
as well as the ongoing reduced working capital needs of the 
group these initiatives will permit the company to sustain  
its activities through the end of 2013
financial highlights
the consolidated income statement on page 25 still  
reflects the fact that we have historically been an exploration 
company with little commercial production to date the 
results have also been impacted by the fair value adjustments 
made on the farmout deals completed on bng with 
canamens and knoc as well as the cost of share based 
payments and ongoing administrative costs which resulting  
in a net loss of us  95 million being recognised during the 
period we continue to drive cost efficiencies into our 
corporate structure and whilst we expect our share of costs 
associated from our joint venture interest to increase as 
operations there develop overall we plan to reduce costs 
through further restructuring
our aim going forward as we move to production is to 
continue to work on cost reduction initiatives as well as to 
increase top line revenues as pilot production commences 
from three of our assets of which production has already 
commenced on galaz in january 2012
social programmes
under kazakh regulations part of our obligations under 
various work programmes on the assets in which we have an 
interest are paid in the form of contributions to local social 
programmes in 2011 roxi made significant contributions to 
•	 kyzylorda region social fund us  302500 galaz and
•	 mangistau regional social obligation fund us  33700 
bng
these contributions while mandatory help secure the good 
standing of the company with the local regional authorities 
and with centrally based regulators roxi is pleased to have 
assisted in the developments of these projects 
environmental
no significant environmental issues have arisen at any of the 
properties acquired to date compliance with environmental 
regulatory bodies is being managed from both the aktau and 
almaty offices
kazakhstan
kazakhstan continues to develop and is constantly amending 
its legal framework and tax legislation to achieve the right 
balance between the state and the need to encourage new 
investment into kazakhstan and from existing companies 
who conduct business in kazakhstan operating in 
kazakhstan in such times of evolution can from time  
to time present difficulties 
as a kazakh based operation with a majority of asian 
investors we believe we are ideally placed to deal with any 
issues as they arise and see this as a competitive advantage 
compared with some of the difficulties being encountered by 
other less integrated international companies
chief executive’s statement continued
the forthcoming drilling campaign to be undertaken on both galaz 
and bng will represent the next key milestone events for roxi 
which if successful could significantly improve roxi’s fortunes 13
business review year in review governance financial statements company information highlights
roxi petroleum plc 
annual report and accounts 2011
outlook
with the restructuring initiatives in place and with the 
successful completion of the farmout of our bng interest  
to knoc this should bring more stability to roxi’s operations 
going forward the forthcoming drilling campaign to be 
undertaken on both galaz and bng will represent the next 
key milestone events for roxi which if successful could 
significantly improve roxi’s fortunes
finally i would like to thank my team at roxi for their 
commitment and loyalty to the organisation without which  
we could not have achieved our successes to date
david wilkes
chief executive officer
8 may 2012