growth through partnership
annual report and accounts 2010
almaty office
7th floor
152a karasai batyra street
050026 almaty
kazakhstan
uk office
21 john street 
london 
wc1n 2bp
website
wwwroxipetroleumcom
roxi pet rol eum plc annual report and accounts 2010
rxp2635  cover aw02indd   1 20052011   1709 roxi petroleum was admitted to trading on london’s aim market 
on 22 may 2007 with the intent to acquire controlling interests in 
and develop oil and gas assets in central asia roxi’s strategy is 
to target oil discoveries and mature exploration acreage which 
have reserves and production upside 
01 highlights
02 year in review
02 operations
07 glossary
08 timeline
10 business review
10 chairman’s statement
12 chief executive’s statement
14 governance
14 board of directors
16 directors’ report and business review
20 remuneration committee report
23 report on corporate governance
24 financial statements
24 independent auditors’ report
25 consolidated income statement
26 consolidated statement of 
comprehensive income
27 consolidated statement of changes in equity
28 parent company statement of 
changes in equity
29 consolidated and parent company 
statement of financial position
30 consolidated and parent company 
cashﬂ ow statements
31 notes to the financial statements
69 company information
uralsk
atyrau
aktobe
aktau
kyzylorda
shymkent
taraz
almaty
karaganda
astana
pavalodar
ust kamenogorsk
galaz
beibars
bng
munaily
contract areas
city
key
contents
company information
directors
mr c carver
nonexecutive chairman
mr d wilkes 
chief executive ofﬁ cer
mr j hyunsik 
chief operating ofﬁ cer
mr k oraziman
executive director
mr e limerick 
nonexecutive director
company secretary 
london registrars plc
registered ofﬁ ce and 
business address 
4th floor
haines house
21 john street
london 
wc1n 2bp
company number 
5966431
nominated adviser and broker
matrix corporate capital llp
1 vine street
london 
w1j 0ah
solicitors 
mccarthy tetrault
5 old bailey
2nd ﬂ oor
london
ec4m 7ba
chadbourne  parke llp
43 dostyk avenue
almaty 050010
kazakhstan
puxon murray llp
one royal exchange avenue
london
ec3v 3lt
auditors
bdo llp
55 baker street
london
w1u 7eu
share register
capita registrars
northern house
woodsome park
fenay bridge
huddersﬁ eld
hd8 0la
public relations 
buchanan communications
107 cheapside
london
ec2v 6dn
principal banker
citibank kazakhstan
park palace
building a
2nd floor
41 kazibek bi str
almaty 050010 
kazakhstan
company information
rxp2635  cover aw02indd   2 20052011   1709 roxi petroleum plc annual report and accounts 2010 01 roxi petroleum plc annual report and accounts 2010
highlights
financial highlights
operational highlights
2010
•	 us  57 	 m illi o n 	 bng 	 farm ou t 	 with 	 c aname ns
•	 us  20 	 m illi o n 	 adv an c e 	 r ec e i v ed 	 in 	 r esp ect 	 of 	 the 	 us  5 0 	 m illi o n 	 gal a z 	 farm ou t 	 with 	lgi
•	 us 13 	 m illi o n 	 p urch as e 	 cons id e ra t i on 	 r ec e i v ed 	 f rom 	lgi 	 fo r 	 40 	 i n t e re st 	 in 	 gal a z 	 llp
•	 us  8 	 m illi o n 	shor t t erm 	 con v e r t i bl e 	 lo an s 	 f rom 	 alti u s 	 re pai d 	 with ou t 	 con v e r s i on
•	 us  8 	 m illi o n 	 lo an 	 f rom 	 kuat 	 ora zi man 	 re pai d
2011 to date
•	 c ompl e t i on	of	us  5 0	m illi o n	gal a z	fa r m  ou t	with	lg i	
•	 c a nc e ll ati o n 	of	de a l 	with	c a na me ns 	r e s ulti ng	in	r e tu r n	of	3 5 	ef fe c tiv e 	inte re st	in		
b ng	llp	to	rox i
•	 	 us  23 6 	m illi o n	of	lo a n s	pr e v i o usly 	du e	to	c a na me ns	b e in g	n ov a te d	to	rox i 	in		
e xcha ng e 	fo r	15 	ro yalt y	p ay a b l e 	by	rox i 	to	c a na me ns	ba s e d 	on	fu tur e 	p r o du c t io n	
f r om 	b ng	llp
•	 n ew	lo a n	fa cilit y	r ec e iv ed	fo r	us  6 	m illi o n	f r om	ver tom 	int e r n a t io n a l 	n v
2010
•	 roxi 	 en t ered 	 i nto 	 a 	 sale 	 a g reem en t 	 fo r 	 it s 	 30  	 i n t e re st 	 in 	 the 	 ravninnoe 	 c on t ract 	 a r ea 	 fo r 	
u s  26 	 m illi o n
•	 8 95km
2
	 of 	 3d 	 s e ism ic 	 a c q u ired 	 on 	 bng 	 a 	 f u r the r 	 46 	 of 	 c on t ract 	 a r ea 
•	 s ou th 	 y el em e s 	 wel ls 		 8 05 	 and 	 80 6 	 su cce ss fu l l y 	 d rill ed 	
•	 22 6 	 b arrels 	 pe r 	 day 	 tested 	 f rom 	 the 	 ju rass i c 	 re ser v o i r 	 in 	 s ou th 	 y el e m es 	 well 	 8 05
•	 new 	 re ser v e s 	 and 	 p ro du ct io n 	 e stab l i s h ed 	 in 	 lower 	 c reta c eou s 	 re ser v o i r 	 of 	 well 	 8 05
•	 pi l o t 	 p ro du ct io n 	 l i c en se s 	 aw arded 	 fo r 	n w 	kon ys 	 and 	 s ou th 	 y el e m es
2011 to date
•	 e x t e ns i on 	of	li c en se	a r ea	of	gal a z	g r a n te d
•	 nw	konys 	 gal a z  	li c en se	ex te n d e d 	of	2	ye a r s	to	m ay	2013
•	 n e a r in g	compl e t i on	of	i n t e r p r et ati o n	of	s e is m ic 	d at a	coll e c t e d 	at	the	b ng 	c on t r ac t	a r ea
highlights
rxp2635  ar10 front aw11indd   1 20052011   1650 business review
roxi petroleum plc annual report and accounts 2010 02
shares at the ipo may 2007 168207490
shares in issue following the acquisition of eragon petroleum plc march 2008 320130567
other shares issued since ipo but before 31122009 97051598
total shares in issue at 31 december 2009 417182165
shares issued during 2010 3636221
total shares in issue at 31 december 2010 420818386
shares issued since 31 december 2010 –
total shares in issue at 26 april 2011 420818386
roxi held interest in five subsoil user contracts in western and central kazakhstan in 2010 the following table 
summarises the company’s interests at end of the year 
during 2010 the group sold its interest in ravninnoe oil llp to beimar oil llp which is expected to be completed in 2011
operating 	 entity description basin inter est 	 at	
1110
inter est 	 at	
311210
bng ltd llp exploration contract precaspian 5841 2341
galaz and company llp exploration contract turgai 5015 5782
ravninnoe oil llp exploration and production contract precaspian 30 30
munaily kazakhstan llp exploration and production contract precaspian 5841 5841
beibars munai llp exploration contract mangyshlak 50 50
shares in issue
review of operations
operational issues in 2010
both of roxi’s active subsidiary 
operating companies galaz and 
company llp and bng ltd llp 
have experienced a difficult year from 
an operational perspective there 
have been three extraordinary events 
which have adversely affected 
operational performance 
in february 2010 the ministry of 
energy and mineral resources 
memr was disbanded by the 
government of kazakhstan and 
responsibilities for overseeing oil  
and gas exploration and production 
contracts was put in the hands of  
the newly formed ministry for oil  
and gas mog and the ministry of 
industry and new technology 
mint the handover of supervision 
was completed by october 2010 and 
shortly following this the company 
received approval of the nw  
konys and south yelemes pilot 
development schemes from the 
mog and mint in december 2010
in april 2010 roxi announced that it 
had executed an agreement to sell a 
40 interest and operational control in 
galaz and company llp to lg 
international corporation of korea 
however it was not until january 2011 
that roxi had received all the 
necessary consents and waivers from 
the government to complete the sale 
and release the funds available to 
resume operations
in june 2010 the republic of 
kazakhstan introduced new 
legislation covering the regulations 
governing oil and gas companies 
in kazakhstan these regulations  
had the most impact on areas of 
procurement procedures kazakh 
content gas flaring permissions and 
environmental emissions permits 
the effect was that all operating 
subsidiaries had to familiarize 
themselves with new procedures  
and recruit the necessary staff to 
comply with the new procurement 
and permitting regulations together 
with government officials in some 
cases this meant having to 
retrospectively apply for permits 
which were not required under  
the previous legislation 
the cumulative effect of these 
developments was to delay progress 
at both galaz and bng however 
these events are unlikely to be 
repeated in the near term and  
should not significantly impact  
future operations
operations
rxp2635  ar10 front aw11indd   2 20052011   1650 03 roxi petroleum plc annual report and accounts 2010
business review
roxi acquired a 5015 interest in 
galaz and company llp in 2008 
the block covers an area of 30 
square kilometers and lies directly 
north of the konys fi eld operated by 
kam the block is towards the south 
edge of the turgai basin and has 
access to export by pipeline to china 
and by rail to russia
contract status
on 16 february 2011 ministry of oil 
and gas extended exploration 
contract of galaz and company llp 
for two more years up to 14 may 2013 
exploration
in february 2010 galaz completed 
well nk22 on the sw corner of the 
block to test the “north konys” 
structure on eastern side of the 
karatau fault system to a depth of 
2800m hydrocarbons were 
interpreted from logs in the arskum 
formation and a hydrocarbon 
gradient was measured in the 
formation as a result of a failed 
cement job in the original hole an 
offset well nk20 was spudded by 
the contractor in december 2010 
and drilled to a total depth of 1550m 
with the objective of retesting the 
arskum sands the well failed to fi nd 
hydrocarbons in the arskum but 
cored thin noncommercial oil 
bearing sands in the upper jurassic
well nk22 and subsequently nk20 
confi rm the migration and entrapment 
of hydrocarbons on the north konys 
structure consequently in august 
galaz applied for and has been 
subsequently awarded an extension 
of the contract area to approximately 
180 square kilometers to the 
southeast of the block
nw konys field pilot 
production
the block contains the nw konys 
satellite structure which was 
successfully appraised in 2008 and 
2009 following which the company 
submitted an application for pilot 
production in november 2009 
the company received confi rmation 
from the ministry that pilot production 
for nw konys was sanctioned in late 
december 2010 however one 
impact of the new oil and gas 
legislation is to delay the start of pilot 
production until completion of 
facilities design project eia and 
issuance of emissions permits from 
the environmental agency expected 
in the second half of 2011
in june 2010 a reserves audit was 
announced by roxi undertaken by 
mcdaniel and associates inc gross 
proven plus probable 2p reserves of 
75mmbbls were estimated for the nw 
konys fi eld this was the fi rst reserves 
update since the appraisal drilling in 
2009 and will be updated following 
further drilling likely to be in 2012 
forward programme
roxi’s main priority in 2010 was to 
secure fi nancing for the development 
of nw konys which was successfully 
achieved by the sale of 40 interest 
to lgi by roxi and partners over the 
next twelve months galaz is planning 
the appraisal and production drilling 
campaign on the fi eld together with 
facilities and infrastructure which will 
be of great signifi cance to roxi 
providing the company’s fi rst 
consistent revenue stream and 
further reserves growth
notifi cation about contract two year 
extension period should result in 
sanction and amendment to the 
subsoil user contract ssuc by 
june 2011 enabling the start of 
production from nw konys as early 
as october 2011
galaz contract area turgai basin central kazakhstan roxi interest 3422
o p e r a t i n g	we l l s
7
r o x i	i n t e r e s t
3422
lgi interest 40
a r ea 
180km
2
g r o s s	r e s e r v e s 
•	 proved 2442 mbbi
•	 proved  probable 7506 mbbi
•	 proved  probable  possible 
10905 mbbi
galaz fact file
rxp2635  ar10 front aw11indd   3 20052011   1650 business review
roxi petroleum plc annual report and accounts 2010 04
roxi acquired a 5841 interest in 
bng ltd llp in 2008 and in 2009 
entered into a farmout agreement 
with canamens to fund the work 
programme for the initial exploration 
period the block covers an area of 
1561 square kilometers and lies in the 
south emba subbasin 40 kilometers 
to the southeast of tengiz fi eld 
contract status
the initial period of the subsoil user 
contract ssuc terminates in may 
2011 in 2010 the operating 
company bng ltd llp applied for 
the fi rst two year extension of the 
ssuc which should after review be 
granted by the ministry of oil and 
gas
south yelemes pilot production
the primary focus of operations in 
2010 has been to appraise the south 
yelemes discovery in the north of the 
block the pilot production project 
was submitted to the ministry for 
approval in 2009 however due to 
restructuring of the ministry the 
approval was delayed until november 
2010 with fi nal project environmental 
and procurement approvals expected 
in the second half of 2011 
well nsa54 was reentered and put 
onto three month test in the fi rst half 
of the year producing a cumulative 
4130 barrels of oil later in the year 
appraisal wells 805 and 806 
classifi ed as exploration wells were 
drilled to evaluate the jurassic 
potential in the fi eld with the 
objective of booking spe initial 
reserves for the fi eld in 2011 the 
wells yielded mixed results delineating 
limited potential in the jurassic 
reservoirs but striking new pay in the 
lowermost cretaceous well 806 
encountered an oilwater contact in 
the jurassic but well 805 tested dry 
oil at 226 barrels of oil per day from 
the jurassic and cretaceous tests 
indicate that this new reservoir should 
be capable of producing at 
commercial rates on pump the 
company is currently updating 
reserves and evaluating how to bring 
the cretaceous into production under 
the existing development scheme 
and thereby raise pilot production 
from south yelemes field at the 
earliest opportunity
during the testing phase oil is being 
sold at the wellhead at domestic 
prices but after stable production 
is established the company will look 
for export options for the sales which 
will result in a marked increase in 
bng revenue 
exploration
bng has continued the strategy of 
3d seismic acquisition across the 
block in 2010 in august 2010 bng 
completed a further 800 square 
kilometer acquisition programme 
which brings the total 3d coverage 
on bng block to 1376 square 
kilometers the data was processed 
in almaty and merged in with the 
data acquired in 2009 
bng continues to gather and assimilate 
historical and surrounding analogue 
data to fully evaluate the exploration 
potential of the block including the 
highly prospective carboniferous and 
lower permian formations and the 
triassic jurassic and cretaceous 
reservoirs all of which produce in the 
areas surrounding the block the initial 
fi ndings of the analysis of the 3d 
seismic information gathered is 
expected to be available during the 
second quarter of 2011
a drilling contract was signed at the 
end of 2009 with a local drilling 
contractor to drill up to 7 wells on bng 
after drilling two south yelemes 
appraisal wells a third exploration well 
135 was spudded at the end of the 
year on the north yelemes prospect 
this small structure was chosen as a 
potential satellite development to south 
yelemes with the objective of early 
production the well was plugged and 
abandoned with uncommercial oil 
shows in fi rst quarter of 2011 
consequently and as a result of the 
initial results of the 3d seismic bng  
has suspended the drilling programme 
on the bng block to focus on the 
exploration potential currently being 
interpreted on the 3d seismic
forward programme
by mid 2011 bng should receive the 
ministry of oil and gas confi rmation of 
the extension of the ssuc after 
which the company plans to prepare 
for a deep well to test the paleozoic 
potential on bng block in the 
meantime the company will focus on 
bring south yelemes fi eld into pilot 
production if successful the 
development of the lower cretaceous 
reservoir in south yelemes would have 
a signifi cant impact on bng and roxi 
roxi should complete spe reserves 
and resources update in 2011 
bng contract area south precaspian basin western kazakhstan roxi interest 2341
o p e r a t i n g	we l l s
4
	
r o x i	i n t e r e s t
2341
a r ea 
1561km
2
s ei s m i c	c over a ge 
1376km
2
88
bng fact file
operations continued
rxp2635  ar10 front aw11indd   4 20052011   1650 business review
05 roxi petroleum plc annual report and accounts 2010
roxi acquired a 50 interest in 
ravninnoe oil llp in 2007 and 
in 2008 entered into a farmout 
agreement with canamens to 
fund the fi rst well the ravninnoe 
structure the block covers an area 
of 121 square kilometers and lies in 
the south emba subbasin 60 
kilometers to the northeast of the 
bng contract area 
in april 2010 newly drilled well 20 
was tested at rates of 240 barrels of 
oil per day from the carboniferous 
dolomite reservoir after acidisation 
little or immaterial increase in 
production was observed the rate
 of 500 barrels of oil per day was 
envisaged as being the commercial 
cutoff for development of ravninnoe 
due to the high costs of drilling this 
deep high pressure reservoir despite 
the potential to apply horizontal 
drilling and fracturing in october 
2010 in order to conserve funding 
for bng roxi together with our 
ravinnoe farmin partner canamens 
announced that it had agreed to sell 
its entire interest in ravninnoe oil
 llp to beimar oil llp
roxi acquired a 50 interest in beibars 
munai llp in 2007  which operates the 
beibars contract area on the caspian 
shoreline south of the city of aktau 
while acquiring 3d seismic in 2008 the 
contract was put into force majeure 
when the acreage was awarded as a 
military exercise area and the kazakh 
forces notifi ed beibars munai llp that 
it would not be permitted access to the 
area agreement was reached with the 
military to fi nish the seismic acquisition 
and since that time there has been no 
operational activity
the company plans to resolve the 
access issue with the army and then 
seek farmin partners to explore 
beibars contract area
roxi acquired a 5841 interest in 
munaily kazakhstan llp in 2008 
which operates the munaily fi eld in 
the atyrau oblast that year two 
wells were drilled on the fi eld and one 
well was reentered the company 
estimated that approximately 11 
million barrels of bypassed reserves 
were recoverable from the old fi eld 
despite the success of these 
operations the board of roxi 
decided that the scale of the project 
was too small and entered into an 
agreement to sell its entire interest to 
btc a local drilling company in 
december 2008 the sale of munaily 
has not yet completed and roxi has 
not participated in any operations on 
the block since 2008 further details 
of the current position is set out in 
the chief executive’s report
ravninnoe contract area south precaspian basin western kazakhstan roxi interest 30
beibars contract area mangishlak basin western kazakhstan roxi interest 50
munaily contract area precaspian basin western kazakhstan roxi interest 5841
rxp2635  ar10 front aw11indd   5 20052011   1650 business review
roxi petroleum plc annual report and accounts 2010 06
qualified person 
duncan mcdougall technical 
consultant of roxi petroleum and 
a fellow in the geological society 
london has reviewed and 
approved the technical disclosure 
in this announcement he holds a 
bsc in geology and has 26 years 
international experience of 
exploration appraisal and 
development of oilfields in a 
variety of environments
gost recoverable oil reserves
reserves and resources summary table
million tonnes
contract	ar ea pr operty	gr oss roxi	net inter est
ravninnoe c1 14 04 3000
c2 08 02 3000
c3
galaz c1 10 03 3422
c2 10 03 3422
c3
bng c1 13 03 2341
c2 45 11 2341
c3 502 117 2341
total c1 37 10
c2 63 16
c3 502 117
million of barrels
contract	ar ea pr operty	gr oss roxi	net inter est
ravninnoe c1 99 30 3000
c2 56 17 3000
c3
galaz c1 72 25 3422
c2 74 25 3422
c3
bng c1 101 24 2341
c2 324 76 2341
c3 3601 843 2341
total c1 272 79
c2 454 118
c3 3601 843
million of barrels
pr operty	gr oss	 roxi	net inter est
ravninnoe probable 13 04 3000
possible 24 07 3000
contingent 
resources best 26 08 3000
galaz proven 24 08 3422
probable 51 17 3422
possible 34 12 3422
bng not evaluated yet
total proven 24 08
probable 64 21
possible 58 19
contingent
 resources best 26 08
operations continued
total reserves  
for all assets
c1
8 million barrels
c1  c2 
20 million barrels
c1  c2  c3 
104 million barrels
all reported using gost 
standards common in russia  
and the cis region
rxp2635  ar10 front aw11indd   6 20052011   1650 business review
07 roxi petroleum plc annual report and accounts 2010
proved reserves
proved reserves are those quantities 
of petroleum which by analysis of 
geosciences and engineering data 
can be estimated with reasonable 
certainty to be commercially 
recoverable from a given date 
forward from known reservoirs and 
under defined economic conditions 
operating methods and government 
regulations if deterministic methods 
are used the term reasonable 
certainty is intended to express a 
high degree of confidence that the 
quantities will be recovered if 
probabilistic methods are used there 
should be at least a 90 probability 
that the quantities actually recovered 
will equal or exceed the estimate
probable reserves
probable reserves are those 
additional reserves which analysis  
of geosciences and engineering  
data indicate are less likely to be 
recovered than proved reserves  
but more certain to be recovered 
than possible reserves it is equally 
likely that actual remaining quantities 
recovered will be greater than or less 
than the sum of the estimated proved 
plus probable reserves 2p in this 
context when probabilistic methods 
are used there should be at least  
a 50 probability that the actual 
quantities recovered will equal  
or exceed the 2p estimate
contingent resources
contingent resources are those 
quantities of petroleum estimated  
as of a given date to be potentially 
recoverable from known accumulations 
but the applied 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
category c1 
c1 reserves are computed on the 
basis of results of geological 
exploration work and production 
drilling and must have been studied 
in sufficient detail to yield data from 
which to draw up either a trial 
industrial development project in the 
case of a natural gas field or a 
technological development scheme 
in the case of an oil field 
category c2 
c2 reserves are preliminary 
estimated reserves of a deposit 
calculated on the basis of geological 
and geophysical research of 
unexplored sections of deposits 
adjoining sections of a field 
containing reserves of higher 
categories and of untested deposits 
of explored fields the shape size 
structure level reservoir types 
content and characteristics of the 
hydrocarbon deposit are determined 
in general terms based on the results 
of the geological and geophysical 
exploration and information on the 
more fully explored portions of a 
deposit category c2 reserves are 
used to determine the development 
potential of a field and to plan 
geological exploration and 
production activities 
category c3 
c3 resources are prospective reserves 
prepared for the drilling of i traps 
within the oilandgas bearing area 
delineated by geological and 
geophysical exploration methods 
tested for such area and ii the 
formation of explored fields which have 
not yet been exposed by drilling the 
form size and stratification conditions 
of the assumed deposit are estimated 
from the results of geological and 
geophysical research the thickness 
reservoir characteristics of the 
formations the composition and the 
characteristics of hydrocarbons are 
assumed to be analogous to those for 
explored fields category c3 resources 
are used in the planning of prospecting 
and exploration work in areas known  
to contain other reserve bearing fields 
gost standards
gost standards are administered  
by the euroasian council for 
standardization metrology and 
certification easc a standards 
organization chartered by the 
commonwealth of independent states
at present the collection of gost 
standards includes over 20000 titles 
used extensively in conformity 
assessment activities in 12 
countries serving as the regulatory 
basis for government and private
sector certification programmes 
throughout the commonwealth of 
independent states the gost 
standards cover energy oil and gas 
environmental protection 
construction transportation 
telecommunications mining food 
processing and other industries
glossary
spe – the society of petroleum engineers
gost standard reserves
rxp2635  ar10 front aw11indd   7 20052011   1650 business review
roxi petroleum plc annual report and accounts 2010 08
“ 	 roxi 	ha s 	made	pr og r e s s	acr os s 	it s 	por t f ol i o 	as	we 	loo k	
to	d el i v er	our	s tr at e g y 	of	se c ur in g 	e a r ly 	pr oduc t ion 	a nd 	
proving 	up	r e ser v e s 	on	our	cor e	a s se ts ” 	
d a vid 	w ilk e s 	c hi ef 	e x e c u tiv e	o f fic e r
2010
january
•	 david wilkes appointed  
as chief executive officer
•	 ravninnoe well 20 drilled 
to 3455m encountering 
hydrocarbons 
•	 ravninnoe well 20 td’s 
february
•	 edmund limerick appointed 
as nonexecutive director 
•	 hyunsik jang appointed as 
chief operating officer
•	 presentation at oil barrel 
conference in london
•	 second discovery on galaz 
contract area nk 22
april
•	 sale of galaz 40  
interest announced
•	 spud well 805 at  
yelemes field
•	 bng tested well  54 
which yield 200 bopd
•	 bng seismic acquisition 
started
•	 ravninnoe well 20 tested 
240 bopd
may
•	 north yelemes seismic 
completed
•	 roxi repaid altius loan  
of us 5 million
june
•	 annual general meeting
•	 mcdaniel spe galaz 
reserves determined
•	 well 805 drilled on  
yelemes field
march
•	 canamens exercised bng 
farmout option stage 2 
•	 roxi repaid the  
us3 million altius 
convertible loan 
august
•	 bng well 805  
completed drilling
september
•	 announce interim half  
year results
•	 bng well 805 finished 
testing of two 
hydrocarbon zones
july
•	 spud well 806 at  
yelemes field
•	 bng 3d seismic acquisition 
program completed
•	 ravninnoe well 20 continued 
production testing
november
•	 one of two 
testing intervals 
completed on 
bng well 806
october
•	 roxi sold 30 interest  
in the ravninnoe  
contract area
december
•	 spud galaz well nk20
•	 spud well 135 on the 
north yelemes
timeline
rxp2635  ar10 front aw11indd   8 20052011   1650 business review
09 roxi petroleum plc annual report and accounts 2010
2011
january
•	 notification on the pilot 
production for galaz and 
bng received
•	 full consideration of 
us156 million for the sale 
of 40 interest in galaz to 
lgi received
•	 well nk 20 shows oil 
encountered over three 
intervals
•	 successful amendment  
of bng work program for 
the period june 2007 to 
june 2011
•	 final approval from 
government authority to 
sell 40 interest in galaz 
to lgi
april
•	 water injection 
permit for galaz
july
•	 confirmation of extension  
to ssuc for bng
•	 emissions permits  
granted for pilot 
production on nw konys
august
•	 start pilot production  
at nw konys
september
•	 project facility design for 
south yelemes approved
•	 announce interim  
half year results
november
•	 spud 2
nd
 appraisal well  
on nw konys field
•	 emissions permits granted 
for pilot production on 
south yelemes
december
•	 pilot production start up 
south yelemes field
•	 spud 3
rd
 appraisal well 
on nw konys field
•	 preparation for field 
facilities construction on 
galaz contract area
may
•	 resource estimate for bng 
contractual area by gaffney  
cline  associates
june
•	 project facility design for 
south yelemes finished 
and sent to authority
•	 seek additional financing 
arrangements for bng
•	 annual general meeting
february
•	 bng well 135 on north 
yelemes – dry hole
•	 confirmation of two 
year extension to ssuc 
for nw konys received
march
•	 canamens announced 
reduction in funding 
commitment
•	 90 day test production 
from bng well 805
october
•	 spud 1
st
 appraisal well  
on nw konys field
•	 water injection well on  
nw konys
rxp2635  ar10 front aw11indd   9 20052011   1650 for 	 the 	year 	 e n ded 	31 	 d ec em b er 	2010 	 	
and 	 the 	 fir st 	f ew 	 mo nth s 	 of 	2011  	 i 	ha ve 	 	
to 	 repo r t 	 b ot h 	 s ome 	 stro ng 	 pr og r e ss 	 	
and 	 s ome 	 s et b ack s 
galaz
on the positive side we recently 
completed the much anticipated 
farmout of part of our interest at 
galaz to lgi the korean multi
national corporation the funds 
released both to develop the galaz 
asset and for roxi day to day use 
were well timed
development work is expected to 
commence in earnest at galaz in 
the second quarter of 2011 
following the receipt of a final 
clearance under the new kazakh 
environmental law we believe that 
this should allow production to 
commence by october 2011
bng seismic evaluation
also on the positive side we have 
almost completed the interpretation of 
the seismic data collected at the bng 
contract area “bng” over the past 
couple of years this is being 
evaluated by our external consultants 
gaffney cline and associates ltd the 
results of which should be announced 
during the second quarter 2011
drilling results at bng
our drilling activity on south yelemes 
has resulted in some positive oil 
shows from the first three wells drilled 
there in 2010 for which we received 
notification of our pilot production 
license in december 2010 
on the negative side in february 
2011 on the north yelemes one of 
our smaller prospects on bng we 
announced that based on wire 
logging there were no zones of 
commercial interest at well 135 and 
that it would be plugged and 
abandoned this was clearly a 
disappointment having drilled to a 
depth of almost 3000 metres but the 
exercise provided a considerable 
amount of information which we 
believe will assist in our further 
development of this area
canamens
in march 2011 we announced that 
canamens bng bv “canamens” 
our farmout partner at bng and 
before that at ravninnoe had 
informed us that they would not be 
making the final payments due 
under the farmout arrangements 
approved by roxi shareholders in 
november 2009 these amount to 
some 12 million 
we had been aware for some  
time that the principal shareholders 
 in canamens were conducting a 
strategic review of canamen’s 
investments and future commitments 
while we thought that canamens’s 
shareholders may not wish 
canamens to fund the development 
of the bng asset following the end of 
the arrangements entered into in 
november 2009 we were surprised 
chairman’s statement
year in review
roxi petroleum plc annual report and accounts 2010 10
rxp2635  ar10 front aw11indd   10 20052011   1650 they have decided not to pay the 
amounts set out in the agreement 
signed at that time
under the terms of the farmout 
agreement the failure by canamens 
to make these payments results in 
the forfeiture of 623 percent of bng 
llp the entity owning the rights to 
bng  accordingly roxi’s interest in 
bng llp would have increased from 
2341 per cent to 2964 percent and 
canamens would have fallen from 35 
percent to 2877 percent  
in the shortterm canamens’ decision 
not to advance the funds for the 
development of bng has had little 
operational impact as much of the 
seismic acquisition and processing 
work has been completed and as 
mentioned above the publication of 
an audited portfolio of bng 
prospectivity is expected in the 
second quarter of 2011
on 10 may 2011 we announced that 
we had agreed with canamens to 
cancel the original bng farmout 
accordingly roxi will own 5841 
percent at the bng contract area 
additionally canamens have agreed 
to novate its loans from bng ltd llp 
to roxi other than us 25 million 
which will be repaid by bng ltd llp 
in return for roxi granting a 15 
percent royalty on its gross value of 
future production from the bng 
contract area i am delighted to 
report that as well as regaining 
majority control of this asset roxi has 
resumed operational and financial 
control of all development operations 
at the bng contract area
the significance of this for roxi is 
that bng energy bv can now seek a 
new farm out partner by farming out 
an interest in bng llp in exchange 
for the new partner providing 
additional funding into the operating 
asset this will allow for the bng to 
explore some of the deeper horizons 
identified from recently performed 3d 
seismic work carried out across the 
license area roxi will also now be 
entitled to us236 million of loans 
that were previously due to 
canamens representing their share 
of historical funding provided to the 
bng asset which have now been 
novated to roxi as part of the deal
management
as previously reported during the year 
under review we strengthened the 
board by the appointment in february 
2010 of edmund limerick as a non 
executive director and in june 2010  
of hyunsik jang as chief operating 
officer i am pleased to report that 
they are making a strong contribution 
to the running of the company and 
that in david wilkes we have a very 
competent chief executive well 
equipped to lead us through some 
potentially challenging times
kazakhstan
during the period under review there 
have been important changes to both 
the subsoil and taxation legislation in 
addition there have been changes in 
the senior personnel at some of the 
regulatory authorities with which we 
deal inevitably such a scale of 
change has resulted in delays in 
receiving regulatory approvals and 
consequently our operations
what has been pleasing is the way in 
which our team has responded to 
these challenges i believe this is a 
direct result of our policy of employing 
principally kazakh nationals and of 
working with our kazakh partners to 
develop our assets we continue to 
maintain good relations with both our 
local partners and the local 
authorities this remains core 
strength of our business
employees
once again i would like to thank all  
of our employees for their continued 
hard work it is never easy working 
for a company such as ours in 
difficult times the progress that 
has been made is principally the 
result of their sustained efforts in 
uncertain times
outlook
now we have concluded an 
acceptable exit from the current 
arrangements with canamens on 
bng we look forward to developing 
our principal assets to move both into 
production later in 2011
clive carver
chairman 
19 may 2011 
year in review
11 roxi petroleum plc annual report and accounts 2010
rxp2635  ar10 front aw11indd   11 20052011   1650 chief executive’s statement
i	am	ve r y 	p le a s e d	to	be	a b le	to	
p r e sen t 	my 	s e cond 	r epor t	as		
c hief	e xe c u tive	o f ficer
update
in summary i would say that we have 
consolidated our position during 2010 
and have made steady progress in 
moving the development of our core 
assets forward at the same time we 
have derisked our portfolio by 
moving away from those noncore 
assets that presented higher risked 
returns at higher costs than we could 
realistically afford
we faced some challenges with delays 
in obtaining the necessary licenses to 
move our core asset’s operations 
forward during the year particularly for 
galaz due to the reorganization at the 
government’s ministries that occurred 
part way through the year which added 
to the normal timeframe for obtaining 
the necessary approvals to progress 
our projects  we also more recently 
were informed by our partner 
canamens that they decided not to 
provide all of the funding under their 
agreement to acquire an interest in 
bng llp  this presents us with some 
short term challenges in meeting our 
immediate cash obligations which will 
be met through an additional financing 
arrangement that we have now agreed 
with vertom international nv via a new 
loan facility of us6 million 
as well as the new financing 
arrangement that we have put in place 
with vertom we have also recently 
agreed with canamens to cancel the 
sale of the 35 interest in bng this 
was considered to be in the best 
interests of both parties and will allow 
roxi to seek alternate financing 
solutions for the continued 
development of the bng asset 
canamens also agreed to novate their 
loans back to roxi plc in return for 
roxi agreeing to pay to canamens a 
form of royalty payment based on 
future production achieved from bng 
llp all of these arrangements will 
ensure that we are able to achieve our 
aim to further develop the potential 
from the bng asset and at the same 
time clear the way for a new financing 
solution to be put in place for bng
we also recently received final 
approvals for the extension of the nw 
konys license area as well as the 
exploration license itself has been 
approved and extended for a further 
two years as well as the pilot 
production license being awarded to 
us so we are well placed together 
with our new farmout partner lgi to 
move this asset to production later 
this year we are in a similar position 
on bng with our pilot production 
license on south yelemes recently 
being awarded to us our plan is to 
move both assets to pilot production 
as soon as the emissions licenses 
have been granted to us by the 
ministry of oil and gas
we are still waiting for final approval 
and completion for the sale of our 
interest in ravninnoe and expect that 
this will complete during 2011 in 
respect of the sale of munaily we are 
currently renegotiating the sale to 
btc which when first negotiated 
wanted to acquire 59 of munaily 
we are now looking to sell our entire 
interest in this asset and are 
renegotiating our terms with the 
buyer the group’s remaining focus 
will be on beibars where we plan to 
farmout part of our interest to an 
investor willing to fund the drilling of 
exploratory wells that will enable us to 
assess the potential of this asset
we continue to maintain our focus on 
cost reduction initiatives and are 
currently reviewing the possible 
restructuring of our holding 
companies structure in 2011 this will 
enable a much more efficient and 
transparent legal structure going 
forward and should enable further 
cost reductions to be achieved in 
addition to those put in place in 2010
strategy
our strategy in the nearterm remains 
committed to finding new farmout 
partners for bng and beibars as well 
as achieving production from bng 
and galaz which are now close to 
achieving pilot production with oil 
discoveries having already been 
made on both assets and with the 
majority of the licensing and 
associated permits now in place to 
start pilot production in the latter part 
of 2011 this will allow us to develop 
galaz and move onto exploration of 
i 	 w oul d 	 s ay 	 th at 	 we 	 h a ve 	 c ons ol ida te d 	 ou r 	
p os i ti o n 	 d u r in g 	2010 	 a nd 	 h a ve 	 m a de 	 s te a d y 	
pr og r e s s 	 in 	 mo v i ng 	 the 	 dev e lo p m e n t 	 of 	 ou r 	
c or e 	 a s se ts 	 f o r wa r d 
year in review
roxi petroleum plc annual report and accounts 2010 12
rxp2635  ar10 front aw11indd   12 20052011   1650 deeper horizons in bng where  
we believe much greater potential 
can be exploited based on the 
results from our recent 3d seismic 
work completed
as we move to pilot production from 
our two core assets we will also look 
for further acquisitions into producing 
assets in kazakhstan
financing arrangements
the completion of the previously 
announced lg deal in january 2011 
provided not only the funding 
necessary for the further 
development of the nw konys field 
but also funds that helped roxi 
repay some of its short term loans 
as well as much needed additional 
shortterm financing for roxi’s fixed 
costs going forward 
in terms of the financing of bng 
now that we have cancelled the deal 
with canamens this will allow us to 
find an alternative financing solution 
for the bng project this will remain 
a priority in the near term to enable 
us to fund the exploration and 
development of the bng operations 
going forward
financial highlights
the consolidated income statement 
on page 25 still reflects the fact that we 
have historically been an exploration 
company with no commercial 
production to date the results for the 
year were impacted by the impairment 
of our ravninnoe asset after our 
decision to sell our ravninnoe interest 
additionally the partial disposal of our 
interest in bng to canamens released 
some of the unrealized currency 
translation losses that had been 
capitalized prior to the devaluation of 
the national currency 
the advances received from the lgi 
deal which completed in january 
2011 enabled us to repay some of 
our loans to shareholders that fell 
due during the course of 2010 this 
was important to protect shareholder 
value and prevent the possibility of 
further dilution of the shareholder 
interests in roxi at the same time 
the proceeds from the disposal of 
the 40 interest in galaz and 
company llp provided useful cash 
injection into the group that will 
sustain us whilst we prepare for pilot 
production from our two core assets 
in the latter part of 2011 these 
factors together with the cost 
reduction initiatives put in place 
during 2010 will mean that we are in 
a much better position to finance our 
transition to production and 
cashflows than in the past and have 
managed to convert some of our 
historical short term financing 
arrangements to longer  
term debt with our partners that will  
be repaid out of initial production  
from our assets
infrastructure
roxi’s activities are run out of our 
principal office in almaty 
staffing
the roxi group now employs in total 
86 staff all of whom are based in 
kazakhstan we have 62 in almaty 
and 24 in the regional and field 
offices of these employees 9 are 
technical staff 17 are financial staff 
14 are operational staff and 46 fulfil 
other activities 79 of our staff are 
kazakh nationals
changes to the board and executive 
management team have been 
summarised in the chairman’s report 
social programmes
under kazakh regulations part of our 
obligations under various work 
programmes on the assets in which 
we have interest are paid in the form 
of contributions to local social 
programmes in 2010 roxi made 
significant contributions to 
•	 kyzylorda region social fund  
211500 galaz and
•	 mangistau regional social 
obligation fund 625000 bng
these contributions while 
mandatory help secure the good 
standing of the company with the 
local regional authorities and with 
centrally based regulators roxi is 
pleased to have assisted in the 
developments of these projects 
environmental
no significant environmental issues 
have surfaced at any of the properties 
acquired to date compliance with 
environmental regulatory bodies is 
being managed from both the 
kyzylorda and almaty offices
kazakhstan
kazakhstan continues to develop  
and is constantly improving its legal 
framework and tax legislation to 
achieve the right balance between  
the need to encourage new 
investment into kazakhstan and 
existing companies who operate 
business in kazakhstan and the 
state operating in kazakhstan in 
such times of evolution can from time 
to time present challenges 
as a kazakh based operation with a 
majority of asian investors we believe 
we are ideally placed to deal with any 
issues as they arise and see in the 
mediumterm some of the difficulties 
being encountered by other less 
integrated international companies 
 as an opportunity for growth
outlook
we look forward with confidence as 
both of our core assets move closer 
to production in 2011 bringing 
much more stability to roxi’s 
operations going forward we will 
continue to be challenged with 
finding the right financing solutions 
for the exploration of some of the 
deeper prospects on bng however 
we believe that with this in place 
together with the ongoing 
development of the nw konys field 
the transformation process for roxi 
will be complete moving us from an 
exploration company to an oil 
producer and ultimately realizing 
value for our shareholders 
david wilkes
chief executive officer 
19 may 2011 
year in review
13 roxi petroleum plc annual report and accounts 2010
rxp2635  ar10 front aw11indd   13 20052011   1650 clive carver 
 ag e d	50 		
n o n  e x e c u tiv e 	ch a i r ma n
clive carver qualified as a chartered 
accountant with coopers  lybrand 
in london in 1986 since then he has 
focused on the corporate finance and 
corporate broking arena including 
working for kleinwort benson and 
price waterhouse corporate finance
he spent five years at seymour 
pierce where he was a director and 
head of corporate finance and six 
years at williams de broë where he 
was head of corporate finance and 
corporate sales at williams de broë 
he led the team floating and fund 
raising for a number of natural 
resource companies he is head of 
corporate finance and a founding 
shareholder at finncap a london 
based financial advisor and broker
david wilkes 
 ag e d 	48  		
d i r e c to r	a nd		
c hief 	e x e c u tiv e 	o f fic e r
david joined the board of roxi on  
1 october 2009 from ernst  young 
where he was a partner in the almaty 
office and was most recently the 
partner responsible for advisory 
services in kazakhstan david has 
over 25 years commercial experience 
including eight years as managing 
partner of ernst  young kazakhstan 
nine years of practice in london  
two years in moscow and six years  
in lisbon portugal
he managed the integration of ernst 
 young and arthur andersen in 
kazakhstan when they merged in 
2002 across the cis during his term 
the ernst  young office grew from 25 
professionals to a firm of over 400 
professionals including 14 partners 
serving some of the leading 
enterprises in kazakhstan
he has been the chairman of the 
kazakhstan foreign investors council 
for the three years as well as holding 
a board position with the american 
chamber of commerce in 
kazakhstan for six years
kuat oraziman
 ag e d 	48  	
e x e c u tiv e 	d i r e c to r
kuat oraziman has 20 years of 
business experience in kazakhstan 
and abroad and nearly 10 years of oil 
and gas experience in kazakhstan 
his experience has included the 
operation of import and export 
businesses the establishment and 
operation of an international brewery 
in kazakhstan and acting as the 
kazakhstan representative of phillips 
and stork since 2001 mr oraziman 
has been a director of ada llp
mr oraziman also holds a doctorate 
in science and is a trained geologist
goverannce
roxi petroleum plc annual report and accounts 2010 14
board of directors
rxp2635  ar10 front aw11indd   14 20052011   1650 edmund limerick
 ag e d	48 		
n o n  e x e c u tiv e	d i r e c to r 	
edmund has been involved in central 
asia and financing the oil and gas 
business for the last 18 years he was 
a manager of the altima central asia 
fund which has invested in private 
equity in the oil sector in many 
countries in the region and prior to 
that he spent many years in deutsche 
bank as a project financier and senior 
oil and gas investment banker in 
moscow london and dubai
previously edmund was a solicitor 
with milbank tweed in moscow and 
freshfields and clifford chance in 
london his early career was spent in 
hm diplomatic service with postings 
in paris dakar and amman he was 
educated in oxford london moscow 
and paris and speaks russian 
he is a 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
hyunsik jang 
aged	54	
c hief 	o p e r ati ng 	o f fic e r
hyunsik jang is a korean national 
who has 26 years experience in the 
upstream oil  gas industry gained 
principally with lgi where he worked 
in south east asia the middle east 
and latin america
in 2006 he was promoted to vice 
president in charge of the energy 
division and in 2007 transferred to 
kazakhstan as head of lgi’s central 
asia region mr jang was responsible 
for lgi’s interest in the ada and ada 
oil properties
governance
15 roxi petroleum plc annual report and accounts 2010
rxp2635  ar10 front aw11indd   15 20052011   1650 goverannce
16 roxi petroleum plc annual report and accounts 2010
the directors present their fourth annual report on the 
operations of the company and the group together  
with the audited financial statements for the year ended  
31 december 2010 the chairman’s statement and the 
chief executive’s statement form part of the business 
review for this year
results and dividends
the consolidated income statement is set out on  
page 25 and shows the loss for the year the directors  
do not recommend the payment of a dividend the 
position and performance of the group is discussed below 
and further details are given in the business review
principal activity
the principal activity of the company and the group is to 
build a diversified portfolio of oil and gas exploration and 
production assets in central asia the group’s focus is 
currently on kazakhstan as a result of numerous niche 
onshore opportunities available under the prevailing 
contract regime and the extensive operational experience 
of the management of the group in the country
group overview
on admission to aim in may 2007 the company raised 
us78 million from institutional investors to pursue a 
strategy of building a diversified portfolio of oil and gas 
exploration and production assets located in central asia 
within three to five years at that time the company had 
agreements to buy three principal assets ravninnoe 
beibars and north karamandybas
following the acquisition of 59 of eragon petroleum plc  
which was approved by shareholders on 29 february 2008  
the group had controlling interests in three additional 
contract areas the bng contract area the galaz 
contract area and the munaily contract area which are 
located in the kyzylorda region and western kazakhstan 
in the precaspian and turgai basins
during 2009 2010 and 2011 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 the group also progressed 
the derisking of the portfolio of assets by progressing the 
sale of its interests in ravninnoe oil llp and munaily 
kazakhstan llp
strategy and future developments
the group’s strategy is to build a diversified portfolio of oil 
and gas exploration and production assets in central asia 
which in the opinion of the directors have potential for 
nearterm production and increases in the stated reserves 
the company is focused on developing our existing 
portfolio of assets against the backdrop of an oil price 
which has been rising in recent months 
the key components of the group’s strategy are 
summarised as follows
•	 the group seeks to optimise its core assets by 
achieving early production securing finance to  
develop its bng asset and building the infrastructure 
to maximize shareholder value in the nearterm
•	 in the mediumterm the group will identify new 
opportunities for underdeveloped oil and gas assets 
with a view to developing them by sourcing new forms 
of finance and partners to leverage the expertise that 
roxi has acquired through developing assets within 
kazakhstan and
•	 in the longerterm the group will maximise production 
and export routes to ensure shareholder value is 
progressively increased over time 
current trading and prospects
since its first admission the company has received only 
minimal income the directors are focused on seeking 
early production from the two core contract areas 
for the year ended 31 december 2010 the group  
reported an after tax loss of us541 million and had  
total equity of us584 million
the directors intend to manage the activities of the 
company in a conservative manner 
key	str engths
the directors believe that the company’s strengths will 
enable it to pursue a strategy to become a significant 
independent oil company in central asia the directors 
believe the company’s key strengths include
•	 experienced team
 the company benefits from an experienced team of 
proven oil and gas executives who also have 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
•	 significant nearterm production
 the directors believe the company’s existing reserves 
can be exploited to achieve further near term 
production that will drive early cash flows and will allow 
the business to achieve profitability and the continued 
expansion of the company’s business
•	 significant possibility of additional reserves
 in addition to existing reserves the directors consider 
there is a good chance that the actual recoverable 
reserves will prove to be significantly higher that the 
contract areas have historically been inadequately or 
poorly explored and that the contract areas offer 
outstanding development potential
directors’ report and business review
rxp2635  ar10 front aw11indd   16 20052011   1650 governance
17 roxi petroleum plc annual report and accounts 2010
•	 further acquisition opportunities
 the directors consider that with its experienced  
team the company is well placed to access and 
successfully negotiate oil and gas assets in 
kazakhstan at competitive prices and to further add to 
its portfolio of oil assets in the future
principal risks and uncertainties
the company and the group is subject to various risks 
relating to political economic legal social industry 
business and financial conditions the following risk 
factors which are not exhaustive are particularly relevant 
to the company and the group’s business activities
•	 financing risks
 the group continually monitors the financing 
arrangements to ensure the continuation of the 
operational activities although the group has 
secured adequate financing of galaz and company 
llp for 2011 and 2012 it is still in the process of 
seeking financing for bng llp for the following two 
to three years
•	 exploration risk
 there is no assurance that the group’s exploration 
activities will be successful accordingly the group 
seeks to reduce this risk by reviewing the level of 
investment made in each project as well as engaging 
qualified personnel to undertake detailed assessments 
of the areas under exploration 
•	 environmental and other regulatory requirements
 existing and possible future environmental legislation 
regulations and actions could cause additional expense 
capital expenditures restrictions and delays in the 
activities of the group the extent of which cannot be 
predicted before exploration and production can 
commence the group must obtain regulatory approval 
and there is no assurance that such approvals will be 
obtained no assurance can be given that the new rules 
and regulations will not be enacted or existing 
legislations will not be applied in a manner which could 
limit or curtail the group’s activities
•	 operational risks
 the group currently operates primarily in kazakhstan 
the nature of the group’s investments requires the 
commitment of significant funding to facilitate 
exploration and evaluation expenditure in kazakhstan 
it is the nature of oil and gas operations that each 
project is 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 2010 was 
us50 million 2009us 40 million
the bulk of the group’s cash balances are held in us 
dollar denominated accounts
events after the reporting period
other than as disclosed in this annual report including 
note 32 to the financial statements there have been no 
material events between 31 december 2010 and the date 
of this report which are required to be brought to the 
attention of shareholders 
dividend policy
the directors do not intend to declare or pay a dividend in 
the immediate foreseeable future but subject to the 
availability of sufficient distributable profits intend to 
commence the payment of dividends when it becomes 
commercially prudent to do so
charitable and political donations
during the year the group made no charitable or 
political contributions
corporate social responsibility
the company will implement various social investment 
programmes throughout the group the company is 
committed to contribute to improving the quality of life and 
education of the local workforce and communities the 
company plans to work with its employees and local 
residents to determine the most effective ways to 
implement the social and community programmes
supplier payment policy
it is in the group’s policy to pay suppliers in accordance 
with the terms and conditions agreed with them the 
average number of days to pay suppliers in the year under 
review as calculated in the prescribed manner is 100 days 
2009 189 days
rxp2635  ar10 front aw11indd   17 20052011   1650 goverannce
18 roxi petroleum plc annual report and accounts 2010
directors’ report and business review continued
employees
staff employed by the group are based primarily  
in kazakhstan the recruitment and retention of  
staff especially at management level is increasingly 
important as the group continues to build its portfolio  
of oil and gas assets
as well as providing employees with appropriate 
remuneration and other benefits together with a safe and 
enjoyable working environment the board recognises the 
importance of communicating with employees to motivate 
them and involve them fully in the business for the most 
part this communication takes place at a local level but 
staff are kept informed of major developments through 
email updates and access to the company’s website
the company has taken out full indemnity insurance on 
behalf of the directors and officers
health safety and environment
it is the group’s policy and practice to comply with health 
safety and environmental regulations and the requirements 
of the countries in which it operates to protect its 
employees assets and environment
key performance indicators “kpis”
the directors are of the opinion that finding prospective 
accumulations of hydrocarbons is the appropriate kpi at 
this stage of the group’s business
the group together with its partners has developed a 
balanced scorecard system the directors consider that 
the organisation and its operations have developed 
sufficiently for such a system to improve the overall 
operational efficiency and performance and at the same 
time link to the performance evaluation and remuneration 
scheme across the group
going concern
the financial statements have been prepared on a going 
concern basis based upon projected future cash flows  
and planned work programmes 
on 26 april 2011 the group entered into a binding 
unsecured loan agreement with one of its related parties 
verom international nv for up to us6000000 see note 
327 in the opinion of the directors this will cover the 
working capital needs until pilot production from south 
yelemes commences from this point operations will be 
cash generative 
 in the longer term the company will need to secure a 
farmout partner to fund the ongoing work programme 
on bng for which the major part of this is expected to 
arise in 2013 when the group drills the deeper horizons 
identified from the recent seismic work undertaken on the 
license area 
directors and directors’ interests
the directors of the company who served during the  
year were
dir ector role
mr clive carver nonexecutive chairman
mr david wilkes chief executive officer 
mr hyunsik jang chief operating officer 
appointed 18 june 2010
mr kuat oraziman executive director
mr edmund limerick nonexecutive director 
appointed 1 february 2010
mr rob schoonbrood chief executive officer
resigned 1 january 2010
mr duncan mcdougall executive technical director
resigned 18 june 2010
biographical details of the current directors are set out  
on page 14 
details of the directors’ individual remuneration service 
contracts and interests in share options are shown in the 
remuneration committee report
financial instruments
details of the use of financial instruments by the company 
and its subsidiary undertakings are contained in note 30 of 
the financial statements 
share options and warrants
the directors consider that an important part of the 
group’s remuneration policy should include equity 
incentives through the grant of share options to directors 
and employees 
details of the options and warrants are set out in notes 28 
and 29 of the financial statements
statement of disclosure of information to auditors
all of the current directors have taken all the steps that 
they ought to have taken to make themselves aware of 
any information needed by the company’s auditors for 
the purposes of their audit and to establish that the 
auditors are aware of that information the directors are 
not aware of any relevant audit information of which the 
auditors are unaware
rxp2635  ar10 front aw11indd   18 20052011   1650 governance
19 roxi petroleum plc annual report and accounts 2010
auditors
the company’s auditors bdo llp have indicated their 
willingness to continue in ofﬁ ce and a resolution 
concerning their reappointment will be proposed at the 
next annual general meeting 
directors’ responsibilities
the directors are responsible for preparing the annual 
report and the ﬁ nancial statements in accordance with 
applicable law and regulations 
company law requires the directors to prepare ﬁ nancial 
statements for each ﬁ nancial year under that law the 
directors have elected to prepare the group and company 
ﬁ nancial statements in accordance with international 
financial reporting standards ifrss as adopted by the 
european union under company law the directors must 
not approve the ﬁ nancial statements unless they are 
satisﬁ ed that they give a true and fair view of the state of 
affairs of the group and company and of the proﬁ t or loss 
of the group and company for that period the directors 
are also required to prepare ﬁ nancial statements in 
accordance with the rules of the london stock exchange 
for companies trading securities on the alternative 
investment market 
in preparing these ﬁ nancial statements the directors are 
required to
• select suitable accounting policies and then apply 
them consistently
• make judgements and accounting estimates that are 
reasonable and prudent
•  state whether they have been prepared in accordance 
with ifrss as adopted by the european union subject 
to any material departures disclosed and explained in 
the ﬁ nancial statements
•  prepare the ﬁ nancial statements on the going concern 
basis unless it is inappropriate to presume that the 
company will continue in business
the directors are responsible for keeping adequate 
accounting records that are sufﬁ cient to show and explain 
the company’s transactions and disclose with reasonable 
accuracy at any time the ﬁ nancial position of the company 
and enable them to ensure that the ﬁ nancial statements 
comply with the requirements of the companies act 2006 
they are also responsible for safeguarding the assets of the 
company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
website publication
the directors are responsible for ensuring the annual 
report and the ﬁ nancial statements are made available on 
a website financial statements are published on the 
company’s website in accordance with legislation in the 
united kingdom governing the preparation and 
dissemination of ﬁ nancial statements which may vary 
from legislation in other jurisdictions the maintenance 
and integrity of the company’s website is the 
responsibility of the directors the directors’ 
responsibility also extends to the ongoing integrity of the 
ﬁ nancial statements contained therein
london registrars plc
company secretary
19 may 2011
rxp2635  ar10 front aw11indd   19 23052011   1805 goverannce
20 roxi petroleum plc annual report and accounts 2010
remuneration committee
the remuneration committee comprises clive carver david wilkes kuat oraziman and edmund limerick and is 
chaired by clive carver
remuneration policy
the company’s policy is to provide remuneration packages that will attract retain and motivate its executive directors 
and senior management this consists of a basic salary ancillary benefits and other 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	agr eement
appointment	letter
date	of	last	r enewal		
of	appointment
executive
david wilkes 1 october 2009 1 january 2010
kuat oraziman 1 april 2007 1 january 2008
hyunsik jang 1 february 2010 18 june 2010
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 
 
2010		
salaryfees
2010		
benefits
2010	
shar ebased	
payments
2010		
t otal
2009		
t otal
clive carver 96000 – 7313 103313 265011
rob schoonbrood – – – – 725368
edmund limerick 44000 – 12038 56038 –
david wilkes 566667 94315 218339 879321 166367
hyunsik jang 305558 53654 31085 390297 –
duncan mcdougall 207780 41521 2359 251660 613809
kuat oraziman 461566 6741 7313 475620 499573
the highest paid director had emoluments totalling us879321 the highest paid director was granted 2000000 and 
exercised nil share options during the year for further details on directors emoluments see notes 6 and 314
bonus	schemes
the company has a bonus scheme for the executive directors and senior management team no bonus are payable in 
respect of the year to 31 december 2010  
rxp2635  ar10 front aw11indd   20 20052011   1650 governance
21 roxi petroleum plc annual report and accounts 2010
shar e	options
the current interests as at approval of accounts of the current directors in share options agreements are as follows
curr ent	dir ectors	–	curr ent	inter est granted option price expiry date
clive carver 750000 13p january 12 2021
david wilkes 3860000 13p january 12 2021
kuat oraziman 3090000 13p january 12 2021
hyunsik jang 3090000 13p january 12 2021
edmund limerick 750000 13p january 12 2021
curr ent	dir ectors	–	curr ent	inter est granted option price expiry date
clive carver 538264 12p august 14 2019
david wilkes 354918 12p october 1 2019
david wilkes 2000000 12p february 15 2020
kuat oraziman 269132 12p august 14 2019
hyunsik jang 750000 12p june 22 2020
edmund limerick 200000 12p february 15 2020
curr ent	dir ectors	–	curr ent	inter est granted option price expiry date
clive carver 1345660 38p may 22 2017
david wilkes 1162555 38p october 1 2019
kuat oraziman 672830 38p may 22 2017
curr ent	dir ectors	–	curr ent	inter est granted option price expiry date
clive carver 1215385 65p february 29 2018
clive carver 387692 65p april 22 2018
david wilkes 1462618 65p october 1 2019
kuat oraziman 607692 65p february 29 2018
kuat oraziman 193846 65p april 22 2018
rxp2635  ar10 front aw11indd   21 20052011   1650 goverannce
22 roxi petroleum plc annual report and accounts 2010
remuneration committee continued
table for share options issued at 31 december 2010   
directors granted option price expiry date
clive carver 538264 12p august 14 2019
david wilkes 354918 12p october 1 2019
david wilkes 2000000 12p february 15 2020
kuat oraziman 269132 12p august 14 2019
hyunsik jang 750000 12p june 22 2020
edmund limerick 200000 12p february 15 2020
directors granted option price expiry date
clive carver 1345660 38p may 22 2017
david wilkes 1162555 38p october 1 2019
kuat oraziman 672830 38p may 22 2017
directors granted option price expiry date
clive carver 1215385 65p february 29 2018
clive carver 387692 65p april 22 2018
david wilkes 1462618 65p october 1 2019
kuat oraziman 607692 65p february 29 2018
kuat oraziman 193846 65p april 22 2018
on behalf of the directors of roxi petroleum plc 
 
clive carver
chairman of remuneration committee 
19 may 2011
 
rxp2635  ar10 front aw11indd   22 23052011   1752 governance
23 roxi petroleum plc annual report and accounts 2010
in common with the board’s commitment to apply best 
practice corporate governance procedures and with 
reference to the combined code on corporate governance 
the board has prepared the following report as an aim 
company there is no requirement to comply with the 
combined code but it has adopted the following corporate 
governance procedures which the directors believe 
demonstrates good corporate governance for the size of 
the group 
the group also intends to comply with the principles of the 
corporate governance guidelines for aim companies 
published by the quoted companies alliance in 2007 so 
far as it is practical for a company of its size
board of directors
the company has 2 nonexecutive directors and  
3 executive directors as follows
clive carver nonexecutive chairman
david wilkes executive
kuat oraziman executive
hyunsik jang executive
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 10 and 19 times during 2010 and 2009 
respectively with the following attendance
2010 2009
mr c carver 10 19
mr e limerick 7 –
mr d wilkes 10 7
mr k oraziman 8 15
mr h jang 7 –
the board has established the following committees
audit committee
the audit committee which comprises clive carver and 
edmund limerick with clive carver acting as chairman 
determines and examines any matters relating to the 
financial affairs of the company including the terms of 
engagement of the group’s auditors and in consultation 
with the auditors the scope of the audit the audit 
committee receives and reviews reports from the 
management and the external auditors of the group 
relating to the annual and interim amounts and the 
accounting and internal control systems of the group in 
addition it considers the financial performance position 
and prospects of the company and ensures they are 
properly monitored and reported on 
remuneration and nomination committee
the remuneration committee comprising clive carver 
david wilkes edmund limerick and kuat oraziman with 
clive carver acting as chairman reviews the performance 
of the senior management sets and reviews their 
remuneration and the terms of their service contracts and 
considers the group’s bonus and option schemes
rule 21 
the directors comply with rule 21 of the aim rules 
relating to directors’ dealing and take all reasonable steps 
to ensure compliance by the company’s applicable 
employees the company has adopted and operates a 
share dealing code for directors and employees in 
accordance with the aim rules
internal controls 
the board acknowledges responsibility for maintaining 
appropriate internal control systems and procedures to 
safeguard the shareholders’ investments and the assets 
employees and the business of the group
the board has established and operates a policy of 
continuous review and development of appropriate 
financial controls together with operating procedures 
consistent with the accounting policies of the group
the board does not consider it appropriate to the current 
size of the group to establish an internal audit function
report on corporate governance
rxp2635  ar10 front aw11indd   23 20052011   1650 financial statements
roxi petroleum plc annual report and accounts 2010 24
independent auditors’ report to the members of roxi petroleum plc
we have audited the financial statements of roxi 
petroleum plc for the year ended 31 december 2010 
which comprise the consolidated income statement the 
consolidated statement of comprehensive income the 
consolidated and parent company statement in changes 
in equity the consolidated and parent company statement 
of financial position the consolidated and parent company 
cash flow statement and the related notes the financial 
reporting framework that has been applied in their 
preparation is applicable law and international financial 
reporting standards ifrss as adopted by the european 
union and as regards the parent company financial 
statements as applied in accordance with the provisions 
of the companies act 2006 
this report is made solely to the company’s members 
as a body in accordance with chapter 3 of part 16 of 
the companies act 2006  our audit work has been 
undertaken so that we might state to the company’s 
members those matters we are required to state to them in 
an auditor’s report and for no other purpose  to the fullest 
extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the 
company’s members as a body for our audit work for this 
report or for the opinions we have formed
respective responsibilities of directors  
and auditors
as explained more fully in the statement of directors’ 
responsibilities the directors are responsible for 
the preparation of the financial statements and for 
being satisfied that they give a true and fair view  our 
responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law 
and international standards on auditing uk and ireland  
those standards require us to comply with the auditing 
practices board’s apb’s ethical standards for auditors 
scope of the audit of the financial statements
a description of the scope of an audit of financial 
statements is provided on the apb’s website at  
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 2010 and of the group’s loss for 
the year then ended
•	 the group financial statements have been properly 
prepared in accordance with ifrss as adopted by the 
european union
•	 the parent company financial statements have been 
properly prepared in accordance with ifrss as 
adopted by the european union and as applied in 
accordance with the provisions of the companies act 
2006 and
•	 the financial statements have been prepared in 
accordance with the requirements of the companies 
act 2006
opinion on other matters prescribed by the 
companies act 2006
in our opinion the information given in the directors’ report 
for the financial year for which the financial statements are 
prepared is consistent with the financial statements 
matters on which we are required to report  
by exception
we have nothing to report in respect of the following 
matters where the companies act 2006 requires us to 
report to you if in our opinion
•	 adequate accounting records have not been kept by 
the parent company or returns adequate for our audit 
have not been received from branches not visited by 
us or
•	 the parent company financial statements are not in 
agreement with the accounting records and returns or
•	 certain disclosures of directors’ remuneration 
specified by law are not made or
•	 we have not received all the information and 
explanations we require for our audit
scott knight senior statutory auditor
for and on behalf of bdo llp statutory auditor 
london 
united kingdom
19 may 2011
bdo llp is a limited liability partnership registered in 
england and wales with registered number oc305127
rxp2635  ar10 back aw11indd   24 23052011   1754 financial statements
25 roxi petroleum plc annual report and accounts 2010
notes
year to  
31 december 
2010  
’000
year to  
31 december 
2009  
’000
revenue 123 817
cost of sales 123 817
– –
impairment of unproven oil and gas assets 1115 10354 11882
gainloss on disposal of subsidiary excluding release of 
cumulative translation reserve
16 1641 716
release of cumulative translation reserve 16 15984 341
provision against joint venture receivable 15 7818 4171
provision against other receivables 19 7763 –
sharebased payments 28 306 1045
other administrative expenses 7564 13564
administrative expenses 48148 31719
operating loss 4 48148 31719
finance cost 7 6124 5889
finance income 8 5459 4157
loss before taxation 48813 33451
taxation 9 5248 894
loss after taxation 54061 34345
loss attributable to minority interests 2351 10275
loss attributable to equity shareholders 51710 24070
54061 34345
basic and diluted loss per ordinary share us cents 10 123 62
all of the results of the group during the year relate to continuing activities
no interim or final dividend has been paid or proposed during the year
the notes on pages 31 to 68 form part of these financial statements
 
consolidated income statement
rxp2635  ar10 back aw11indd   25 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 26
consolidated statement of comprehensive income
year ended  
31 december 
2010  
us000
year ended  
31 december 
2009  
us000
loss after taxation 54061 34345
other comprehensive income
exchange differences on translating foreign operations 102 41541
other comprehensive incomeloss for the year before and after taxation 102 41541
total comprehensive loss for the year 53959 75886
total comprehensive income attributable to
owners of parent 51638 46064
minority interest 2321 29822
the notes on pages 31 to 68 form part of these financial statements
rxp2635  ar10 back aw11indd   26 20052011   1649 financial statements
27 roxi petroleum plc annual report and accounts 2010
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
shares 
to be 
issued 
’000
cumulative 
translation 
reserve 
’000
other 
reserves 
’000
capital
contribution 
reserve 
’000
retained 
earnings 
’000
total 
’000
minority 
interests 
’000
total 
equity 
’000
total equity as at  
1 january 2009 64549 85909 – 20175 2900 2378 – 36017 139894 70439 210333
total comprehensive 
income for the year – – – – 21994 – – 24070 46064 29822 75886
arising on share 
issues 7925 18655 – 20175 – – – – 6405 – 6405
share issue cost – 259 – – – – – – 259 – 259
arising on loan from 
shareholder – – – – – – 1476 – 1476 – 1476
reallocation – – – – – – 1211 – 1211 1211 –
arising on exercise 
of warrants – – – – – – – 749 749 – 749
arising on employee 
share options – – – – – – – 1045 1045 – 1045
arising on share split 64702 – 64702 – – – – – – – –
disposal of subsidiary – – – – – – – – – 12125 12125
total equity as at 
31 december 2009 7772 104305 64702 – 19094 2378 265 58293 102035 29703 131738
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
shares 
to be 
issued 
’000
cumulative 
translation 
reserve 
’000
other 
reserves 
’000
capital
contribution 
reserve
’000
retained 
earnings 
’000
total 
’000
minority 
interests 
’000
total 
equity 
’000
total equity as at  
1 january 2010 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
shares to be issued amount subscribed for unissued share capital
cumulative translation reserve losses arising on retranslating the net assets of overseas operations  
 into us dollars
other reserves fair value of warrants issued
capital contribution reserve capital contribution arising on discounted loans step by step acquisitions  
 and effect of issue costs of debt in subsidiary
retained earnings cumulative losses recognised in the consolidated income statement
minority interests the interest of noncontrolling interests in the net assets of the subsidiaries
   reallocation – reallocation arises as a result of the company assuming certain costs on behalf of the minority interests
 forfeited warrantsarises as a result of the company’s expired warrants during 2010 see note 29 
 purchase of additional share in subsidiary  see note 14
the notes on pages 31 to 68 form part of these financial statements
consolidated statement of changes in equity
rxp2635  ar10 back aw11indd   27 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 28
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
shares to 
be issued 
’000
other 
reserves 
’000
capital 
contribution 
reserve  
’000
retained 
earnings 
’000
total  
’000
total equity as at  
1 january 2009 64549 85909 – 20175 2378 – 47975 125036
total comprehensive income  
for the year – – – – – – 17393 17393
arising on share issues 7925 18655 – 20175 – – – 6405
share issue cost – 259 – – – – – 259
arising on loan from shareholder – – – – – 1476 – 1476
arising on exercise of warrants – – – – – – 749 749
arising on employee share options – – – – – – 1045 1045
arising on share split 64702 – 64702 – – – – –
total equity as at  
31 december 2009 7772 104305 64702 – 2378 1476 63574 117059
share 
capital 
’000
share 
premium 
’000
deferred 
shares 
’000
shares to 
be issued 
’000
other 
reserves 
’000
capital 
contribution 
reserve  
’000
retained 
earnings 
’000
total  
’000
total equity as at  
1 january 2010 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
shares to be issued amount subscribed for unissued share capital
other reserves fair value of warrants issued
capital contribution reserve capital contribution arising on discounted loans
retained earnings cumulative losses recognised in the income statement 
  forfeited warrants arises as a result of the company’s expired warrants during 2010 see note 29 
the notes on pages 31 to 68 form part of these financial statements
 
parent company statement of changes in equity
rxp2635  ar10 back aw11indd   28 20052011   1649 financial statements
29 roxi petroleum plc annual report and accounts 2010
company number 5966431 notes
group
2010  
’000
company
2010  
’000
 group
2009  
’000
 company 
2009  
’000
assets
noncurrent assets
unproven oil and gas assets 11 76298 – 187608 –
property plant and equipment 12 674 5 896 48
investments in subsidiaries 13 – 96122 – 102522
other receivables 19 49101 10789 21936 29651
restricted use cash 221 1 414 –
total noncurrent assets 126294 106917 210854 132221
current assets
available for sale financial assets 30 – – 1106 1106
inventories 18 762 – 639 –
other receivables 19 1748 236 4421 65
cash and cash equivalents 20 4959 2194 3950 983
7469 2430 10116 2154
assets in disposal group classified as held for sale 15 8357 – – –
total current assets 15826 2430 10116 2154
total assets 142120 109347 220970 134375
equity and liabilities
capital and reserves attributable  
to equity holders of the parent
share capital 21 7832 7832 7772 7772
share premium 104798 104798 104305 104305
deferred shares 21 64702 64702 64702 64702
other reserves 1779 1779 2378 2378
capital contribution reserve 2229 1344 265 1476
retained earnings 107530 87738 58293 63574
cumulative translation reserve 3038 – 19094 –
66314 92717 102035 117059
minority interests 7954 – 29703 –
total equity 58360 92717 131738 117059
current liabilities
trade and other payables 22 6911 11714 13737 6669
purchase consideration received in advance 23 14213 – 19221 –
shortterm borrowings 24 14009 4460 22267 8434
warrant liability 29 332 332 1630 1630
current income tax 580 – 1006 –
current provisions 25 2552 105 4910 583
38597 16611 62771 17316
liabilities directly associated with assets in disposal 
group classified as held for sale 15 6906 – – –
total current liabilities 45503 16611 62771 17316
noncurrent liabilities
borrowings 26 27818 – 1637 –
deferred tax liabilities 27 8725 – 20010 –
noncurrent provisions 25 695 – 3518 –
other payables 1019 19 1296 –
total noncurrent liabilities 38257 19 26461 –
total liabilities 83760 16630 89232 17316
total equity and liabilities 142120 109347 220970 134375
these financial statements were approved and authorised for issue by the board of directors on 19 may 2011 and were 
signed on its behalf by
clive carver       david wilkes
chairman of the board      chief executive officer
the notes on pages 31 to 68 form part of these financial statements
consolidated and parent company statement of financial position 
rxp2635  ar10 back aw11indd   29 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 30
consolidated and parent company cashflow statements
 year to 
31 december 2010
year to 
31 december 2009
notes
group 
’000
company 
’000
group 
’000
company 
’000
cash flows from operating activities
cash received from customers 123 – 817 –
payments made to suppliers for goods  
and services 12838 3808 8034 3424
12715 3808 7217 3424
cash flows from investing activities
purchase of plant property and equipment 12 383 – 24 –
additions to unproven oil and gas assets 11 11926 – 18294 –
disposal of plant property and equipment 12 44 32 – –
transfers tofrom restricted use cash 193 1 348 –
acquisition of subsidiaries net of cash acquired 14 3380 – – –
disposal of subsidiary 1623 19682 – 4956 –
purchase consideration received in advance 23 13723 – 19221 5000
repayment of financial aid and loans by subsidiaries – 13629 – 1185
issue of financial aid and loans to subsidiaries – 9677 – 12983
acquisition of joint venture 17 165 – 900 –
net cash flow from investing activities 18118 3983 6411 6798
cash flows from financing activities
net proceeds from issue of ordinary share capital 
net of expenses relating to issue of shares 553 553 6079 6079
repayment of borrowings 16433 8433 450 450
new loans received 27878 3500 5000 5000
loans from subsidiaries – 5416 – 410
loans to joint venture from partners 639 – 613 –
issue of loans to joint venture 17030 – 6860 –
net cash from financing activities 4393 1036 4382 11039
net increase in cash and cash equivalents 1010 1211 3576 817
effects of exchange rates – – 37 14
cash and cash equivalents at beginning of period 3950 983 411 152
cash and cash equivalents at end of period 20 4960 2194 3950 983
there were no significant noncash transactions during the year except as disclosed in note 25 change in estimates
the notes on pages 31 to 68 form part of these financial statements
 
rxp2635  ar10 back aw11indd   30 20052011   1649 financial statements
31 roxi petroleum plc annual report and accounts 2010
general
roxi petroleum plc “the company” is a public company incorporated and domiciled in england and wales the address 
of its registered office is 21 john street london wc1n 2bp these consolidated financial statements were authorised 
for issue by the board of directors on 19 may 2011
the principle activities of the group are exploration and production of crude oil
1 principal accounting policies
the principal accounting policies applied in the preparation of these consolidated financial statements are set out below 
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 26 april 2011 the group entered into a binding unsecured loan agreement with one of its related parties vertom 
international nv for up to us6000000 see note 327 in the opinion of the directors this will cover the working capital 
needs until pilot production from south yelemes commences from this point operations will be cash generative 
in the longer term the company will need to secure a farm in partner to fund the ongoing work programme on bng for 
which the major part of this is expected to arise in 2013 when the group drills the deeper horizons identified from the 
recent seismic work undertaken on the license area
the company has taken advantage of section 408 of the companies act 2006 and has not included its own income 
statement in these financial statements the group loss for the year included a loss on ordinary activities after tax of 
us26637000 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 2009 the following standards interpretations and amendments to 
existing standards have been adopted for the first time in 2010
international accounting standards iasifrs
standard description effective date
ias 27 amendment – consolidated and separate financial statements 1 july 2009
ifrs 3 revised – business combinations 1 july 2009
ias39
amendment – financial instruments recognition and measurement 
eligible hedged items 1 july 2009
ias39 amendment reclassification of financial assets effective date and transition 1 july 2009
ifric 9  ias39 amendment – embedded derivatives 1 january 2010
ifrs 2 amendment – group cash settled share–based payments 1 january 2010
ifrs 1 amendment – additional exemptions for first–time adopters 1 january 2010
improvements to ifrss amendments to various statements issued 6 may 2010 1 january 2010
international financial reporting interpretations ifric
standard description effective date
ifric 16 hedges of net investment in a foreign operation 1 january 2010
ifric 17 distributions of noncash assets to owners 1 january 2010
ifric 18 transfers of assets from customers 1 january 2010
the adoption of these standards interpretations and amendments did not affect the company results of operations or 
financial positions the presentation of these financial statements incorporates changes arising from adoption of these 
standards interpretations and amendments
notes to the financial statements
rxp2635  ar10 back aw11indd   31 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 32
notes to the financial statements continued notes to the financial statements
the iasb and ifric have issued the following standards and interpretations which are effective for reporting periods 
beginning after the date of these financial statements and which the group is not early adopting
standard description effective date
ias 32 amendment – classification of right issues 1 february 2010
ifric 19 extinguishing financial liabilities with equity instruments 1 july 2010
ifrs 1 amendment – first time adoption of ifrs 1 july 2010
ias 24 revised – related party disclosures 1 january 2011
ifric 14 amendment – ias 19 limit on a defined benefit asset 1 january 2011
ifrs 7  amendment – transfer of financial assets 1 july 2011
ifrs 1  severe hyperinflation and removal of fixed dates for firsttime adopters 1 july 2011
improvements to  
ifrss 2010 
miscellaneous amendments resulting from the iasb’s  
annual improvements projects 1 january 2011
ias 12  deferred tax recovery of underlying assets 1 january 2012
ifrs 9  financial instruments 1 january 2013
the group has not yet assessed the impact of ifrs 9 except for the amended disclosure requirements of ias 24 the 
above revised standards amendments and interpretations are not expected to materially affect the group’s reporting or 
reported numbers 
  not yet endorsed by european union
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 
rxp2635  ar10 back aw11indd   32 20052011   1649 financial statements
33 roxi petroleum plc annual report and accounts 2010
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 unless otherwise stated rs munai llp 
beibars munai llp munaily kazakhstan llp galaz and company llp roxi petroleum services llp and roxi petroleum 
kazakhstan llp subsidiary undertakings of the group and ravninnoe oil llp and bng ltd llp being jointly controlled 
entities undertake their activities in kazakhstan and the kazakh tenge is the functional currency of these entities the 
functional currency for the company rs munai bv beibars bv ravninnoe bv galaz energy bv and bng energy bv is 
usd as the significant transactions and assets and liabilities of these companies are in usd
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 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 deferred tax assets and current 
tax losses have not been recognised since it is uncertain that taxable profits will be available against which deductible 
temporary differences can be utilised
rxp2635  ar10 back aw11indd   33 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 34
notes to the financial statements continued
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 license acquisition technical services and studies seismic acquisition exploration drilling 
and testing but do not include costs incurred prior to having obtained the legal rights to explore an area which are 
expensed directly to the income statement as they are incurred 
tangible assets acquired for use in exploration and evaluation activities are classified as property plant and equipment 
however to the extent that such a tangible asset is consumed in developing an intangible exploration and evaluation asset 
the amount reflecting that consumption is recorded as part of the cost of the intangible asset
the amounts included within unproven oil and gas assets include the fair value that was paid for the acquisition of 
partnerships holding subsoil use in kazakhstan these licenses have been capitalised to the group’s full cost pool in 
respect of each license area 
exploration and unproven intangible assets related to each exploration licenseprospect 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 
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 ssuc contract the group must place 1 of the value of exploration costs in an escrow deposit account at the end 
of the contract this cash will be used to return the field to the condition that it was in before exploration started
notes to the financial statements
rxp2635  ar10 back aw11indd   34 20052011   1649 financial statements
35 roxi petroleum plc annual report and accounts 2010
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 on original maturity of less 
than 3 months other receivables are initially measured at fair value and subsequently at amortised cost
the group’s financial liabilities are 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 through the profit or loss basis
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
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
rxp2635  ar10 back aw11indd   35 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 36
notes to the financial statements continued
117 sharebased payments
the group has used shares and share options as consideration for goods and services received from suppliers and 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 or excess fair value of the identifiable goods or services 
received in which case they are measured at the fair value of the equity instruments granted measured at the date the 
entity obtains the goods or the counterparty renders the service the fair value determined at the grant date of such an 
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 blackscholes model 
119 gem facility
the gem facility is classified as an available for sale asset the asset recognised relates to future economic benefits of 
the group being able to obtain funding via share issue to gem global yield fund limited at a 10 per cent discount of the 
market price for the last 15 trading days this asset has been initially recognized at fair value and at each reporting date 
the available for sale asset is fair valued with changes of fair value recognised in profit or loss as they arise
120 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
121 cost of sales
during test production cost of sales cannot be reliably estimated and therefore a cost of sales equal to revenue is recognised 
122 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
123 interest receivable
interest income is recognised using the effective interest rate method
124 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 154
notes to the financial statements
rxp2635  ar10 back aw11indd   36 20052011   1649 financial statements
37 roxi petroleum plc annual report and accounts 2010
2 critical accounting estimates and judgements
in the process of applying the group’s accounting policies which are described in note 1 management has made 
the following judgements and key assumptions that have the most significant effect on the amounts recognised in the 
financial statements
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 be stated in the accounts at discounted present value and 
accreted up to the final liability by way of an annual finance charge
the group has potential decommissioning obligations in respect of its interests in kazakhstan the extent to which a provision is 
required in respect of these potential obligations depends inter alia on the legal requirements at the time of decommissioning the 
cost and timing of any necessary decommissioning works and the discount rate to be applied to such costs
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 performance of the 
operating segments and making strategic decisions has been identified as the board of directors
the group operates in one operating segment exploration for oil in kazakhstan therefore no additional segmental 
information is presented 
4 operating loss
group operating loss for the period has been arrived after charging 
2010  
’000
2009  
’000
depreciation of property plant and equipment note 12 267 285
auditors’ remuneration note 5 299 325
staff costs note 6 3717 4220
share based payment remuneration all equity settled note 6 306 1045
impairment of unproven oil and gas assets note 11 10354 11882
provision against other receivables note 19 7763 –
provision against joint venture receivable notes 1519 7818 4171
rxp2635  ar10 back aw11indd   37 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 38
notes to the financial statements continued
5 group auditor’s remuneration
fees payable by the group to the company’s auditor and its associates in respect of the year
 2010  
’000
2009  
’000
fees for the audit of the annual financial statements 227 231
auditing of accounts of associates of the company 66 84
other services 6 10
299 325
6 employees and directors
staff costs during the period
group
2010
’000
company
2010
’000
group
2009
’000
company
2009
’000
wages and salaries 3229 1178 3652 1712
social security costs 313 88 393 165
pension costs 175 10 175 8
sharebased payments 306 306 1045 1045
 4023 1582 5265 2930
average monthly number  
of people employed  
including executive directors
group  
2010 
company  
2010 
group  
2009 
company  
2009 
technical 19 1 18 2
field operations 13 – 21 –
finance 17 – 15 3
administrative and support 44 6 25 4
other 2 – – –
 95 7 79 9
key management compensation
group  
2010  
’000
company  
2010  
’000
group  
2009  
’000
company  
2009  
’000
salaries and shortterm 
 employee benefits 1878 1409 1289 1049
sharebased payments 278 278 845 845
 2156 1687 2134 1894
directors’ emoluments
the directors are the key management personnel of the company and group details of directors’ emoluments and 
interests in shares are shown in the remuneration report
notes to the financial statements
rxp2635  ar10 back aw11indd   38 20052011   1649 financial statements
39 roxi petroleum plc annual report and accounts 2010
7 finance cost
group  
2010  
’000
 group  
2009  
’000
loan interest payable 2978 1454
unwinding of fair value adjustments on loans 1951 3203
write off of available for sale financial asset 1106 –
unwinding of discount on provisions note 25 89 234
 foreign exchange losses – 998
6124 5889
8 finance income
group  
2010  
’000
 group  
2009  
’000
interest income on financing provided to jointly controlled entities 3526 –
revaluation of warrants see note 29 1206 3156
other 727 1001
5459 4157
9 taxation
analysis of charge for the period
group  
2010  
’000
 group  
2009  
’000
current tax 5055 1848
deferred tax chargecredit 193 954
tax charge 5248 894
the tax charge for the period can be reconciled to the loss for the year as follows 
group  
2010  
’000
 group  
2009  
’000
loss on ordinary activities before tax 48813 33451
tax on the above at the standard rate of corporate income tax in the uk 28 13668 9366
effects of
non deductible expenses 8738 4839
increase of deferred tax liability due to change in future tax rates see note 27 1687 –
effect of different tax rates overseas 1922 2807
withholding tax on capital gain see note 16 4502 –
tax losses carried forward 2067 2614
taxation 5248 894
 200928
rxp2635  ar10 back aw11indd   39 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 40
notes to the financial statements continued
10 loss per share
basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average 
number of ordinary shares outstanding during the period including shares to be issued
in order to calculate diluted loss per share the weighted average number of ordinary shares in issue is adjusted to assume 
conversion of all dilutive potential ordinary shares according to ias33 dilutive potential ordinary shares include share 
options granted to employees and directors where the exercise price adjusted according to ias33 is less than the average 
market price of the company’s ordinary shares during the period during the year the potential ordinary shares are anti
dilutive and therefore diluted loss per share has not been calculated at the balance sheet date there were 70655264 
2009 88966145 potentially dilutive ordinary shares consisting of share options and warrants notes 28 and 29 
the calculation of earnings per share is based on
2010 2009
the basic weighted average number of ordinary shares in issued  
during the period 419847345 387244655
the loss for the period attributable to equity shareholders ’000 51710 24070
11 unproven oil and gas assets
cost
group
’000
cost at 1 january 2009 340446
additions 11004
sales from test production 817
disposal of subsidiary note 16 85887
foreign exchange difference 66045
recognition of joint venture note 17 13148
cost at 31 december 2009 211849
additions 8937
sales from test production 123
disposal of subsidiary note 16 145970
foreign exchange difference 837
reclassification to assets held for sale note 15 30533
other reclassifications 13130
recognition of joint venture note 17 34082
cost at 31 december 2010 92209
notes to the financial statements
rxp2635  ar10 back aw11indd   40 20052011   1649 financial statements
41 roxi petroleum plc annual report and accounts 2010
accumulated impairment
group
’000
accumulated impairment at 1 january 2009 67412
impairment in the year 11882 
disposal of subsidiary 42060
foreign exchange difference 12993
cost at 31 december 2009 24241
impairment in the year 10354
disposal of subsidiary note 16 8905
foreign exchange difference 29
reclassification to assets held for sale note 15 22938
other reclassifications 13130
cost at 31 december 2010 15911
net book value at 1 january 2009 273034
net book value at 31 december 2009 187608
net book value at 31 december 2010 76298
unproven oil and gas assets represent the acquisition cost and subsequent exploration activities in respect of five licenses 
held by kazakh group entities the carrying values of those assets at 31 december 2010 were as follows beibars munai 
llp us nil 2009 us nil bng ltd llp 2341 share us 35185000 2009 100 consolidated us133959000 
galaz and company llp us 41113000 2009 us37393000 munaily kazakhstan llp us nil 2009 us 428000 
and ravninnoe oil llp 30 share classified as assets held for sale us 7595000 2009 us 15828000
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 agreements  sale and purchase agreements “spa”s entered into during the current year and following the 
year end due to the early stage of development of these assets the directors consider the values implied by the spas 
to be the best indicator of value currently available accordingly where the value implied by these spas is below the net 
book value a provision has been made to reduce the carrying value of that asset to the value implied by the relevant spa
as a result of military training activities the group currently cannot access the beibars license area which resulted in a 
forcemajeure 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 the directors have made provisions of us10354000 in respect of the ravninnoe 
asset with an offsetting release of deferred tax of us1494000 in the prior year provisions totaling us79294000 
were made comprising ravninnoe us51524000 bng us14281000 beibars us11882000 and munaily 
us1607000 with an offsetting release of deferred tax of us11066000
rxp2635  ar10 back aw11indd   41 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 42
notes to the financial statements continued
12 property plant and equipment
group
motor vehicles
’000
buildings
’000
other 
’000
total
’000
cost at 1 january 2009 277 816 772 1865
additions – 14 10 24
disposals 54 18 18 90
reclassifications – – 12 12
foreign exchange difference – 140 115 255
disposal of subsidiary note 16 28 104 57 189
recognition of joint venture note 17 9 31 17 57
cost at 31 december 2009 204 599 597 1400
additions 105 – 278 383
disposals 57 – 48 105
reclassifications 62 138 76 –
reclassification to assets held for sale note 15 8 30 38 76
disposal of subsidiary note 16 145 – 250 395
recognition of joint venture note 17 34 – 59 93
cost at 31 december 2010 195 431 674 1300
depreciation at 1 january 2009 93 59 183 335
charge for the period 51 54 180 285
disposals 23 – 6 29
impairment – – 3 3
foreign exchange difference – 17 14 31
disposal of subsidiary note 16 16 31 29 76
recognition of joint venture note 17 5 9 9 23
depreciation at 31 december 2009 110 74 320 504
charge for the period 48 46 173 267
disposals 25 – 36 61
reclassifications 18 5 13 –
reclassification to assets held for sale note 15 3 12 13 28
disposal of subsidiary note 16 34 – 39 73
recognition of joint venture note 17 8 – 9 17
depreciation at 31 december 2010 86 113 427 626
net book value at
1 january 2009 184 757 589 1530
31 december 2009 94 525 277 896
31 december 2010 109 318 247 674
 
rxp2635  ar10 back aw11indd   42 20052011   1649 financial statements
43 roxi petroleum plc annual report and accounts 2010
company
motor vehicles
’000
buildings
’000
other 
’000
total
’000
cost at 1 january 2009 – – 70 70
additions – – – –
cost at 31 december 2009 – – 70 70
disposals – – 57 57
cost at 31 december 2010 – – 13 13
depreciation at 1 january 2009 – – 8 8
charge for the period – – 14 14
depreciation at 31 december 2009 – – 22 22
charge for the period – – 11 11
disposals – – 25 25
depreciation at 31 december 2010 – – 8 8
net book value at
1 january 2009 – – 62 62
31 december 2009 – – 48 48
31 december 2010 – – 5 5
rxp2635  ar10 back aw11indd   43 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 44
notes to the financial statements continued
13 investments company
investments
company 
’000
cost
at 1 january 2009 130821
additions 2954
at 31 december 2009 133775
additions –
at 31 december 2010 133775
impairment
at 1 january 2009 27498
impairment in 2009 3755
at 31 december 2009 31253
impairment in 2010 6400
at 31 december 2010 37653
net book value at 
31 december 2009 102522
31 december 2010 96122
  as described in note 29 during the year ended 31 december 2009 kuat oraziman agreed to subordinate his us10000000 loan to galaz energy bv to 
the us5000000 loan entered into with altius energy ltd in return for this kuat oraziman received 36000000 warrants to subscribe for shares in the 
company on 29 june 2009 kuat oraziman transferred his 36000000 warrants to altius energy limited as this transaction occurred for the benefit of 
galaz energy bv an additional investment has been recognized in the company totaling to the fair value of the warrants issued
  the investment in beibars bv which holds 50 of beibars munai llp has been fully impaired during 2009 due to the impairment of oil and gas assets as 
described in note 11 
 the investment in ravninnoe bv which holds 30 of ravninnoe oil llp has been impaired during the year due to the impairment of oil and gas assets as 
described in note 11 
rxp2635  ar10 back aw11indd   44 20052011   1649 financial statements
45 roxi petroleum plc annual report and accounts 2010
the company’s principal subsidiary undertakings and ravninnoe oil llp and bng ltd llp being jointly controlled 
entities which are included in these consolidated financial statements are
name of undertaking
country of 
incorporation
effective 
holding and 
proportion of 
voting rights 
held 2010
effective 
holding and 
proportion of 
voting rights 
held 2009 nature of business
rs munai bv formerly sytero bv netherlands 100 100 holding company
beibars bv formerly sytero 2 bv netherlands 100 100 holding company
ravninnoe bv formerly sytero 3 bv netherlands 100 100 holding company
bng energy bv netherlands 59 59 holding company
galaz energy bv formerly sytero 4 bv netherlands 59 59 holding company
rs munai llp kazakhstan 50 50 exploration company
beibars munai llp kazakhstan 50 50 exploration company
ravninnoe oil llp kazakhstan 30 30 exploration company
bng ltd llp kazakhstan 23 58 exploration company
galaz and company llp kazakhstan 58 50 exploration company
munaily kazakhstan llp kazakhstan 58 58 exploration company
roxi petroleum services llp kazakhstan 100 100 management company
roxi petroleum kazakhstan llp kazakhstan 100 100 management company
eragon petroleum limited england 59 59 holding company
ada bv netherlands 100 100 dormant
ada oil bv netherlands 100 100 dormant
 indirect shareholding of the company 
rs munai llp beibars munai llp munaily kazakhstan llp galaz and company llp have been classified as 
subsidiary undertakings rather than as joint ventures since in the opinion of the directors the company has operational 
control of these entities 
ravninnoe oil llp and bng ltd llp are jointly controlled by the group and canamens energy bv and as a result from 
13 july 2009 and 11 january 2010 respectively they have been proportionately consolidated as a jointly controlled entity 
as disclosed in note 17 ravninnoe oil llp is classified as asset held for sale on 31 december 2010 see note 15
rxp2635  ar10 back aw11indd   45 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 46
notes to the financial statements continued
14 acquisitions
on 21 july 2010 galaz energy bv acquired an additional 13 in its subsidiary galaz and company llp for a total 
consideration of us3380000 that increased company’s interest from 50 to 58 related share in net assets of 
galaz and company llp at the date of acquisition was equal to us1018000 the difference between the purchase 
consideration and net assets was charged directly to the consolidated statement of changes in equity 
15 assets and liabilities classified as held for sale
in october 2010 the company announced that it is going to sell its entire 30 interest in ravninnoe oil llp to beimar 
oil llp a private company for us 26 million the sales and purchase agreement is subject to the receipt of certain 
waivers from regulatory authorities after all necessary waivers are received the company will transfer its title to the 
ravninnoe interest that is expected to occur in the nearest future following the completion of the sale the company will 
have no further interest in ravninnoe oil llp 
the assets and liabilities have been classified as held for sale in the consolidated statement of financial position the 
following major classes of assets and liabilities relating to these operations have been classified as held for sale in the 
consolidated statement of financial position on 31 december 2010 
’000
unproven oil and gas assets 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 us18172000 and release of corresponding deferred tax of us1494000 on the measurement 
of the disposal group to fair value less cost to sell has been recognised and is included in administrative expenses of 
continuing operations ravninnoe oil llp division does not constitute a discontinued operation as it does not represent a 
major line of business or geographical area of operation
rxp2635  ar10 back aw11indd   46 20052011   1649 financial statements
47 roxi petroleum plc annual report and accounts 2010
16 disposals
bng ltd llp disposal
during 2009 the company entered into a sale and purchase agreement “spa” to dispose of 35 of its interest in bng 
ltd llp the structure of the deal was in two stages as follows
a stage 1
on 15 january 2009 the group and canamens bng bv part of canamens group signed a farm out agreement for 
bng ltd llp this agreement was amended during 2009 in april july september and december
under the terms of the restated agreement canamens bng bv agreed to purchase 23 of the equity and 23 of the 
loan receivables of bng ltd llp for a total consideration of us34 million “stage 1” payable to bng energy bv
under the terms of the spa bng energy bv is required to loan “bng loan 1” to bng ltd llp us27 million of the 
proceeds although the funds are passed down in full by bng energy bv 23 of the repayments are required to be 
made to canamens this loan was restated on completion of stage 2 so that 35 of the amount loaned was repayable 
to canamens and remaining 65 being repayable to bng energy bv
this stage of the transaction was completed on 11 january 2010
b stage 2
additionally under the farm out agreement canamens acquired an option to purchase a further 12 of the equity and the 
loan receivables including bng loan 1 of bng ltd llp for a total consideration of us23 million “stage 2” payable to 
bng energy bv
on 30 april 2010 canamens exercised this option
under the terms of the agreement bng energy bv is required to loan “bng loan 2” to bng ltd llp all us23 million of 
the proceeds although the funds are passed down in full by bng energy bv 35 of the repayments are required to be 
made to canamens with the remaining 65 being made to bng energy bv
this stage of the transaction was completed on 30 april 2010
following the completion of stage 2 above the company retains an effective interest in bng ltd llp of 2341 see note 
321 for further information
the company has subsequent to the year end agreed to cancel the spa for the purchase of shares in bng ltd llp by 
canamens see note 328 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
less release of cumulative translation reserve 10504
41496
loss on disposal 7496
rxp2635  ar10 back aw11indd   47 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 48
notes to the financial statements continued
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
less release of cumulative translation reserve 5480
29847
loss on disposal 6847
the net cash inflow on disposal comprises
cash received 39255
cash disposed of 352
net cash inflow 38903
 the us159 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 us57000000 purchase consideration us4501954 was withheld by canamens energy bv in order to pay 
withholding tax on the capital gain 
until the date of disposal bng ltd llp was treated as a subsidiary and was fully consolidated into the financial 
statements of the group from the date of disposal bng ltd llp was treated as a jointly controlled entity and 
proportionally consolidated
rxp2635  ar10 back aw11indd   48 20052011   1649 financial statements
49 roxi petroleum plc annual report and accounts 2010
ravninnoe oil llp disposal
on 14 november 2008 the company kuat oraziman ravninnoe bv vertom international bv and canamens energy bv 
signed a sale and purchase agreement “spa” to farm out 325 of ravninnoe oil llp “ravninnoe” as follows
•	 kuat oraziman agreed to sell his 125 interest in ravninnoe to canamens
•	 ravninnoe bv agreed to sell 20 of its interest in ravninnoe to canamens and
•	 vertom international bv and the group agreed to transfer to canamens 262 of the total loan receivables as 
defined in the spa made to ravninnoe by the group and vertom
the farm out was carried out in 2 stages under stage 1 of the spa us5000000 was paid by canamens to kuat 
oraziman for 10 of his interest in ravninnoe and us1570000 of the group’s loans to ravninnoe
following canamens’ exercise of its option to purchase the stage 2 interest canamens in return for a consideration of 
us8500000 payable to ravninnoe bv received an additional 225 of the equity of ravninnoe from ravninnoe bv 20 
and from kuat oraziman 25 and the remaining 225 of the total loans receivable from the group and vertom international 
bv the consideration of us8500000 was required to be lent to ravninnoe for the purposes of drilling ravninnoe well 
20 both stages were completed in 2009 the group’s remaining interest in ravninnoe oil llp is currently 30 
the loss on disposal of ravninnoe oil llp was determined as follows
at date of 
disposal 
’000
noncurrent assets 44518
inventories 117
trade and other receivables 543
cash and cash equivalents 3001
trade and other payables 19403
noncurrent liabilities 4524
net assets at date of disposal 24252
total consideration 8500
less 20 of net assets on disposal 4850
less transfer of the group’s loans receivable from ravninnoe 3286
less recognition of 30 share of additional liability to vertom see note 25 1080
less recycling of cumulative translation reserve 341
9557
loss on disposal 1057
the net cash inflow on disposal comprises
cash received 7957
cash disposed of 3001
net cash inflow 4956
of the 8500000 purchase consideration us543000 was withheld by canamens energy bv in order to pay 
withholding tax 
until the date of disposal ravninnoe oil llp was treated as a subsidiary and was fully consolidated into the financial 
statements of the group from the date of disposal ravninnoe oil llp was treated as a jointly controlled entity and 
proportionally consolidated as detailed in note 17 
rxp2635  ar10 back aw11indd   49 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 50
notes to the financial statements continued
17 jointly controlled entity
from 30 april 2010 the group has a 2341 interest in the jointly controlled entity bng ltd llp which has been 
accounted for by proportional consolidation the following amounts have been recognised in the group’s consolidated 
statement of financial position relating to this jointly controlled entity
 2010
’000
noncurrent assets 36236
current assets 742
total assets 36978
noncurrent liabilities 10927
current liabilities 10559
total liabilities 21486
expenses 921
loss after tax 921
bng ltd llp’s contingent liabilities and capital commitments are disclosed in note 25
until 11 january 2010 bng ltd llp was treated as a subsidiary and was fully consolidated into the group accounts 
from 13 july 2009 the group has a 30 interest in the jointly controlled entity ravninnoe oil llp which has been 
accounted for by proportional consolidation as well the following amounts have been recognised in the group’s 
consolidated statement of financial position relating to this jointly controlled entity as of 31 december 2009
 2009 
’000
noncurrent assets 16703
current assets 1065
total assets 17768
noncurrent liabilities 2468
current liabilities 8888
total liabilities 11356
expenses 107
loss after tax 107
as the company is going to sell ravninnoe interest in the nearest future related assets and liabilities were classified as 
assets and liabilities held for sale as of 31 december 2010 see note 15 
rxp2635  ar10 back aw11indd   50 20052011   1649 financial statements
51 roxi petroleum plc annual report and accounts 2010
18 inventories
 group
2010
’000
company
2010
’000
 group
2009
’000
company
2009
’000
materials and supplies 762 – 639 –
 762 – 639 –
materials and supplies are principally comprised of concrete slabs goods and some tubing to be used in the exploration 
and development of the group’s oil and gas properties in kazakhstan all amounts are held at the lower of cost and net 
realisable value
19 other receivables
 group
2010
’000
company
2010
’000
group
2009
’000
company 
2009
’000
amounts falling due after one year
advances paid 600 – – –
intercompany receivables – 10765 – 29627
other receivables 15187 24 14421 24
amounts due from joint venture 33314 – 7515 –
49101 10789 21936 29651
amounts falling due within one year
advances paid 132 7 4294 18
prepayments 41 39 22 22
other receivables 1575 190 105 25
 1748 236 4421 65
other receivables falling due after one year include kazakh vat an amount of us7769000 2009 us11900000 
in respect of an indemnity against a loan included within shortterm borrowings as detailed in note 31 and an amount 
of us 5000000 in respect of a loan facility as detailed in note 31 the carrying amount of other receivables is a 
reasonable approximation of fair value
amounts due from joint venture relate to bng ltd llp and ravninnoe oil llp and are shown net of provision of  
us120 million 2009 us42 million and bear interest at rates between libor2 to libor 7 
advances paid relate to amounts paid to third parties for services and materials to be provided post year end 
other receivables falling due within one year include amount of us1300000 related to deferred purchase consideration 
receivable from canamens in respect of bng ltd llp 2 stage disposal that is shown net of provision of us11943000 
see note 321 for further information the provision is partially offset by reduction in the related loan to canamens in the 
amount of us4180000 giving the net provision of us7763000
intercompany receivables are shown net of provision of us26239000 2009 us18462000 and bear interest rates 
between libor 2 and libor 7 
rxp2635  ar10 back aw11indd   51 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 52
notes to the financial statements continued
20 cash and cash equivalents
 group
2010
’000
company
2010
’000
group
2009
’000
company 
2009
’000
cash at bank and in hand 4959 2194 3950 983
funds are held in us dollars sterling euros kazakh tenge and other foreign currency accounts to enable the group to 
trade and settle its debts in the local currency in which they occur and in order to mitigate the group’s exposure to short
term foreign exchange fluctuations all cash is held in floating rate accounts
denomination
group
2010
’000
company
2010
’000
group
2009
’000
company
2009
’000
us dollar 4808 2135 2129 303
kazakh tenge 106 8 535 –
sterling 51 51 1281 1281
euro 6 – 5 5
4959 2194 3950 983
for the purpose of the consolidated statement of cash flow cash and cash equivalents include also cash related to 
assets classified as held for sale in the amount of us1000 see note 15
21 called up share capital
group and company
number of 
ordinary shares ’000
balance at 31 december 2008 324855567 64549
remaining consideration for eragon petroleum limited 7 may 2009 48461538 7204
effect of share split see below 28 may 2009 – 64702
ordinary shares issued –  
for cash consideration us500000 2 june 2009 3215020 51
ordinary shares issued
 1
15 july 2009 7087500 115
ordinary shares issued –  
for cash consideration us990000 18 september 2009 6000000 99
ordinary shares issued
 2
4 november 2009 9082500 149
ordinary shares issued
 2
20 november 2009 6430040 107
ordinary shares issued
 2
27 november 2009 12050000 200
balance at 31 december 2009 417182165 7772
ordinary shares issued
 3
 15 february 2010 36221 5
ordinary shares issued
 2
9 april 2010 3600000 55
420818386 7832
1
 the company issued 7087500 fully paid ordinary shares on 15 july 2009 as the finder’s fee for the funds raised by the issue of shares on 20 november 2008
2
 these shares were issued for cash on exercise of warrants
3
  ordinary shares issued to the warranty holder pursuant to the terms of the deeds of the warrant
rxp2635  ar10 back aw11indd   52 20052011   1649 financial statements
53 roxi petroleum plc annual report and accounts 2010
on 28 may 2009 each of the issued ordinary shares of 10p each in the capital of the company were subdivided and 
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 
22 trade and other payables – current
 group
2010
’000
company 
2010
’000
group
2009
’000
company 
2009
’000
trade payables 2709 321 9233 255
taxation and social security 99 36 100 50
accruals 535 500 544 516
other payables 3518 2 3162 438
intercompany payables – 10855 – 5410
deferred income 50 – 698 –
6911 11714 13737 6669
23 purchase consideration received in advance
 group
2010
’000
company 
2010
’000
group
2009
’000
company 
2009
’000
purchase consideration received  
in advance 14213 – 19221 –
14213 – 19221 –
as at 31 december 2010 the purchase consideration received in advance of us137 million relates to amounts received 
in advance from lgi in respect of the acquisition of 40 of galaz and company llp as detailed in note 31 
as at 31 december 2009 the purchase consideration received in advance of us192 million relates to amounts received 
in advance from canamens bng bv in respect of the acquisition of 23 of bng ltd llp
rxp2635  ar10 back aw11indd   53 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 54
notes to the financial statements continued
24 shortterm borrowings
 group
2010
’000
company 
2010
’000
group
2009
’000
company 
2009
’000
interest free loan from kuat oraziman a 3960 3960 3875 3875
interest bearing loan from kuat oraziman b 7961 – 10652 –
loan from altius energy c – – 4559 4559
loan from vertom d – – 2398 –
other borrowings 2088 500 783 –
14009 4460 22267 8434
a at 31 december 2010 the principal amount of us4550000 represents an interest free loan from mr kuat 
oraziman that was initially repayable on 2 july 2010 during 2009 this loan was subordinated to the loan from 
altius energy see note 29 and as a result was fair valued at this date and subsequently accounted for at 
amortised cost on 14 may 2010 kuat oraziman agreed to extend the repayment of this loan to july 2011 as a 
result the loan was fair valued at this date and subsequently accounted for at amortised cost on 26 april 2011 
the loan agreement was amended by extending its repayment terms to july 2012 also the loan became an interest 
bearing with an annual rate of 12 see note 326 
 b at 31 december 2010 the us5000000 interest bearing loan from kuat oraziman 2009 us10000000 was 
repayable together with accrued interest in july 2011 during 2009 this loan was subordinated to the loan from altius 
energy see note 29 and as a result was fair valued at this date and subsequently accounted for at amortised cost 
this loan bears interest at libor 7 the loan is the subject of the baverstock indemnity described in note 312 
in december 2010 us5000000 was repaid to kuat oraziman under the loan facility arrangement entered between 
galaz energy bv roxi petroleum plc eragon and baverstock described in note 312 on 26 april 2011 the loan 
agreement was amended by extending its repayment terms to july 2012 see note 326
c loan from altius energy 
on 16 june 2009 the company received a us5 million loan from altius energy this loan was repaid on 18 may 
2010 
 the group entered into a shortterm loan arrangement with altius on 15 january 2010 whereby altius lent  
us3 million to the company with associated interest of libor plus 7 and repayable on 31 march 2010 the 
loan was repaid on 31 march 2010 together with the associated interest 
d loan from vertom 
this amount represents the group’s 30 share of ravninnoe oil llp’s loan due to vertom bearing interest rate 
of 4 per annum as detailed in note 15 this loan was reclassified to liabilities directly associated with assets in 
disposal group classified as held for sale
 
rxp2635  ar10 back aw11indd   54 20052011   1649 financial statements
55 roxi petroleum plc annual report and accounts 2010
25 provisions
group only
employee 
holiday 
provision
liabilities 
under social 
development 
programme
abandonment 
fund
2009
total
’000
balance at 1 january 2009 200 6952 1565 8717
increase in provision 1204 2766 580 4550
paid in year – 3719 – 3719
unwinding of discount – 164 70 234
foreign exchange difference 21 – 188 209
disposal of subsidiary 113 1294 229 1636
addition of joint venture 34 387 70 491
balance at 31 december 2009 1304 5256 1868 8428
noncurrent provisions – 1650 1868 3518
current provisions 1304 3606 – 4910
balance at 31 december 2009 1304 5256 1868 8428
group only
employee 
holiday 
provision
liabilities 
under social 
development 
programme
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 15
4 444 220 668
disposal of subsidiary 62 709 197 968
addition of joint venture 16 166 46 228
balance at 31 december 2010 354 2387 506 3247
noncurrent provisions – 189 506 695
current provisions 354 2198 – 2552
balance at 31 december 2010 354 2387 506 3247
rxp2635  ar10 back aw11indd   55 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 56
notes to the financial statements continued
a beibars munai llp
during 2007 beibars munai llp a subsidiary undertaking and the ministry of energy and mineral resources of the 
republic of kazakhstan signed a contract for oil exploration within the block xxxvii10 in mangistauskaya oblast 
contract 2287 the contract term is until 2012 and the exploration period is 5 years
in accordance with the terms of the contract beibars munai llp has committed to the following
•	 investing not less that 5 of annual capital expenditures on exploration during the exploration period in professional 
training of kazakhstani personnel engaged in work under the contract
•	 investing us1000000 to the development of astana city during the second year of the contact term
•	 investing us1000000 in equal tranches over the exploration period in the social development in the region and
•	 transferring on an annual basis 1 of exploration expenditures to a liquidation fund through a special deposit 
account in a bank located within the republic of kazakhstan
beibars munai llp did not fulfil its obligations under the social programme in 2009 and 2010 due to forcemajor 
circumstances see note 11
 unpaid amounts in respect of the above social obligations are included within liabilities of social programmes above
b ravninnoe oil llp
during 2004 ravninnoe oil llp a joint venture from 13 july 2009 previously subsidiary undertaking and the ministry 
of energy and mineral resources of the republic of kazakhstan signed the contract for oil exploration and production 
of hydrocarbons at a deposit located in atyrauskaya oblast contract 1401 the contract term is until 2029 and the 
exploration period is 7 years
from 13 july 2009 the group’s interest in ravninnoe oil llp was reduced to 30 and has been consolidated using the 
proportional consolidation method as described in note 16
in accordance with the terms of the contract and addendums ravninnoe oil llp has committed to the following
•	 investing not less that 1 of total investments in professional training of kazakhstani personnel engaged in work 
under the contract
•	 investing us300000 to the development of astana city during the exploration period
•	 investing us300000 over the exploration period in the social development in the region 
•	 executing a minimum work programme of us17350000 over the first 3 years of the exploration period
•	 executing a minimum work programme of us14644400 over the initial 2 year extension period
•	 executing a minimum work programme of us25600000 over the second 2 year extension period and
•	 transferring 1 of production investment to a liquidation fund through a special deposit account in a bank located 
within the republic of kazakhstan 
on making a commercial discovery the ssuc defines a commercial discovery as the discovery within the contract area 
of one or several fields that are commercially suitable for production us11538728 shall be paid by ravninnoe oil llp 
in respect of historical costs to the authorities the amount payable will be recalculated by the authorities to take into 
account any relinquished portion of the contract area no amounts have been recognised in the financial statements in 
respect of this as at 31 december 2009 
on 16 april 2011 ravninnoe oil llp will start applying to the production phase this process will take approximately  
9 months within which minimal work program for the whole production period will be approved by the ministry of oil and 
gas formerly ministry of energy and mineral resources
 unpaid amounts in respect of the above social obligations are included within liabilities for social programs above
rxp2635  ar10 back aw11indd   56 20052011   1649 financial statements
57 roxi petroleum plc annual report and accounts 2010
c munaily kazakhstan llp
munaily kazakhstan llp a subsidiary signed a contract  1646 dated 31 january 2005 with the ministry of energy and 
mineral resources of rk for exploration and extraction of hydrocarbons on munaily deposit located in atyrau region
the contract is valid for 25 years exploration period of 3 years production – 22 years based on addendum 3 dated  
4 march 2008 the exploration period was further extended for 2 years – up until 31 january 2010 currently the group is 
in the process of receiving approval for the commercial production phase minimal work programme for the production 
period has not been approved by the ministry of oil and gas yet
in accordance with the terms of the contract and addendums munaily kazakhstan llp remains committed to the following
•	 social development of atyrau region – us600000 over the period of the contract
•	 to allocate us400000 to the astana city development programme
•	 professional education of engaged kazakhstan personnel – not less than 1 of total investments
•	 transferring on an annual basis 1 of exploration expenditures to a liquidation fund through a special deposit 
account in a bank located within the republic of kazakhstan and
•	 if munaily kazakhstan llp progresses to the production phase it is obliged within 90 days to enter into 
additional agreement to the contract which will determine the payment of the remaining historic costs for the 
amount of us1580000 no amounts have been recognised in the financial statements in respect of this as at 
31 december 2009
unpaid amounts in respect of the above social obligations are included within liabilities for social programmes above
d bng ltd llp 
bng ltd llp a subsidiary signed a contract 2392 dated 7 june 2007 with the ministry of energy and mineral 
resources of rk for exploration at airshagyl deposit located in mangistau region under addendum no1 dated  
17 april 2008 contract area was increased the contract is valid for 4 years and expires on 7 june 2011 addendum  
no 2 dated 19 february 2009 agreed the minimum work programme to be carried out 
in accordance with the terms of the contract and addendums bng ltd llp remains committed to the following
•	 investing us5000000 over the exploration period in the social development in the region
•	 if a production license is granted a further us2500000 should be invested in the social development of the region
•	 to fund minimum work programme during the exploration period of us64600000
•	 investing not less than 1 of total investments in professional training of kazakhstani personnel engaged in work 
under the contract and
•	 transferring on an annual basis 1 of exploration expenditures to a liquidation fund through a special deposit 
account in a bank located within the republic of kazakhstan 
 unpaid amounts in respect of the above social obligations are included within liabilities for social programmes above
rxp2635  ar10 back aw11indd   57 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 58
notes to the financial statements continued
e galaz and company llp
galaz and company llp a subsidiary undertaking signed an exploration contract 593 dated 12 december 2000 in 
respect of the northwest konys deposit located in kyzylorda region
in accordance with the terms of the contract and addendums galaz and company llp remains committed to the 
following
•	 investing 3 of total exploration expenditures for the social development of the region and 2 for social 
infrastructure development with a further us120000 to be allocated during the extension to the kyzylorda 
contract under annex no 2
•	 investing not less than 1 of total investments in professional training of kazakhstani personnel engaged in work 
under the contract
•	 to create a liquidation fund in an amount of us130000 by providing financial and bank guarantees
•	 to pay royalties of 2 of hydrocarbons volume produced in the event of test production of hydrocarbons under the 
kyzylorda contract and
•	 to fund a minimum work programme of us23154000
on 16 february 2011 the exploration contract of galaz and company llp was granted an extension of two years to  
14 may 2013 see note 323 minimal work programme for the extension period has not been approved yet
 unpaid amounts in respect of the above social obligations are included within liabilities for social programme above
rxp2635  ar10 back aw11indd   58 20052011   1649 financial statements
59 roxi petroleum plc annual report and accounts 2010
26 borrowings
 the noncurrent borrowings are non interest bearing and are due to the following  
 group
2010
’000
company
2010
’000
group
2009
’000
company 
2009
’000
loan from jv partner to bng ltd llp a 5514 – – –
loan from jv partner to bng energy bv b 1926 – – –
loan from lgi c 20378 – – –
other payables – – 1637 –
27818 – 1637 –
a the amount represents group’s share of debt owed by bng ltd llp to canamens as a result of its acquisition of 
35 interest in bng ltd llp as at 31 december 2010
b the loan due to canamens represents the group’s share of debt owed by bng energy bv to canamens as a result 
of its acquisition of 35 interest in bng ltd llp as at 31 december 2010
c the loan due to lgi represents the group’s debts owed by galaz and company llp to lgi as a result of its planned 
acquisition of 40 interest in galaz and company llp as at 31 december 2010
rxp2635  ar10 back aw11indd   59 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 60
notes to the financial statements continued
27 deferred tax
deferred tax liabilities comprise
  group 
2010
’000
 group
2009 
’000
deferred tax on exploration and evaluation assets acquired 8725 20010
8725 20010
in accordance with ias 12 the group recognises deferred taxation on fair value uplifts to its oil and gas projects arising 
on acquisition these liabilities reverse as these fair value uplifts are depleted or impaired
the movement on deferred tax liabilities was as follows
 group 
2010 
’000
group 
2009 
’000
at beginning of the period 20010 30513
foreign exchange 50 6065
increase in tax rate 1687 –
disposal of subsidiary 15052 4977
recognition of joint venture 3524 1493
impairment of oil and gas asset 1494 954
 8725 20010
the increase of deferred tax liability mainly relates to changes in future tax rates and represents the directors’ best 
estimate of future tax rates in kazakhstan of 20 see note 9
the group also has accumulated estimated tax losses of approximately us27000000 2009 us29000000 available 
to carry forward and offset against future profits this represents an unprovided deferred tax asset of approximately 
us6000000 2009 us4700000
28 share option scheme
during the year the company issued equitysettled sharebased instruments to its directors and certain employees 
equitysettled 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 2009
31289676 53
granted 7578550 26
expired 1792693 65
as at 31 december 2009 37075533 47
granted 2950000 12
expired 7093231 65
expired 5786338 38
expired 2314535 12
as at 31 december 2010 24831429 43
there were 18901956 2009 26255329 share options exercisable at the end of the year with a weighted average 
exercise price of 45p 2009 42p
rxp2635  ar10 back aw11indd   60 20052011   1649 financial statements
61 roxi petroleum plc annual report and accounts 2010
the options were issued to directors and employees as follows
share options
 
number 
of options 
granted
number 
of options 
expired reclassifications
total options 
outstanding
weighted 
average exercise 
price in pence p 
per share expiry
as at 
31 december 2008 31289676 – – 31289676 53
directors 6909418 – 5012853 28435197 46
14 august 2019 
and  
1 october 2019
employees  
and others 669132 1792693 5012853 8640336 54
14 august 2019 
and 28 
september 2019
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 –
  
the range of exercise prices of share options outstanding at the year end is 12p – 65p 2009 12p – 65p the weighted 
average remaining contractual life of share options outstanding at the end of the year is 751 years 2009 821 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
2010 2009
expected volatility  80 80
expected life periods 5 5
riskfree rate  284 251284
fair value per option p 46 2866
rxp2635  ar10 back aw11indd   61 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 62
notes to the financial statements continued
29 warrants issued
following table summarises the warrant transactions during the year
number ’000
description grant exercised
year  
end grant exercised
income 
statement
year  
end
expiry 
date
gem global yield 
fund limited
 1
– – 9000000 – – 335 309
26 may 
2014
altius energy
 2
56335 3600000 29323835 – 92 871 23
31 march
2011
56335 3600000 38323835 – 92 1206 332
 
1 the company entered into a £15000000 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 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 us1106000 and have been revalued at the year end to us309000  
2009 us644000 with the difference being credited to the income statement due to the exercise price of the warrants being in sterling and the 
functional currency being us dollar 
2 kuat oraziman agreed to subordinate 14550000 of loans made to the group to the us5000000 loan entered into with altius energy limited 
us10000000 of the loans were restated on similar terms as altius energy limited’s loan including the issue of 36000000 warrants which were 
valued at us2953000 this amount has reduced the fair value of us10000000 loan to galaz energy bv note 23 on 29 june 2009 kuat oraziman 
transferred his 36000000 warrants to altius energy limited during the year 3600000 warrants were exercised 2009 3132500 also pursuant to 
the terms of the deeds of warrant 56335 additional warrants were issued during the year at the year end the outstanding warrants were revalued to 
us23000 2009 us986000 with the difference being credited to the income statement due to the exercise price of the warrants being in sterling and 
the functional currency being us dollar 
during the period ended 31 december 2007 the company issued warrants over 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 
the total number of warrants that remained outstanding at the year end was 45823835 2009 51890612
rxp2635  ar10 back aw11indd   62 20052011   1649 financial statements
63 roxi petroleum plc annual report and accounts 2010
30 financial instrument risk exposure and management
in common with all other businesses the group and company are exposed to risks that arise from its use of financial 
instruments this note describes the group and company’s objectives policies and processes for managing those 
risks and the methods used to measure them further quantitative information in respect of these risks is presented 
throughout these financial statements
the significant accounting policies regarding financial instruments are disclosed in note 1
there have been no substantive changes in the group or company’s exposure to financial instrument risks its 
objectives policies and processes for managing those risks or the methods used to measure them from previous periods 
unless otherwise stated in this note
principle financial instruments
the principle financial instruments used by the group and company from which financial instrument risk arises are  
as follows
financial assets
group  
2010  
’000
company  
2010  
’000
group  
2009 
’000
company  
2009  
’000
 loans and receivables
intercompany receivables – 8387 – 23027
amounts due from joint venture 33314  2378 7515 6600
other receivables – current 9932  190 4399 43
other receivables – noncurrent 12990  1 14421 24
cash and cash equivalents 4959  2194 3950 983
 61195 13150 30285 30677
 this amount includes assets in disposal group classified as held for sale
as at 31 december 2010 the carrying value of available for sale financial assets for the group and company was us nil 
2009 group and company us1106000 this is described in notes 7 and 29    
financial liabilities
group  
2010  
’000
company  
2010  
’000
group  
2009 
’000
company  
2009  
’000
 financial liabilities at amortised cost
trade and other payables 13667  11697 13737 6669
other payables – noncurrent 1019 – 1296 –
borrowings – current 14009  4460 22267 8434
borrowings – noncurrent 27818 – 1637 –
purchase consideration received in 
advance 14213 – 19221 –
 70726  16157 58158 15103
 this amount includes liabilities directly associated with assets in disposal group classified as held for sale
as at 31 december 2010 the carrying value of financial liabilities measured at fair value through profit and loss for the 
group and company was us332000 2009 group and company us1630000 these are described in note 29
 
rxp2635  ar10 back aw11indd   63 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 64
notes to the financial statements continued
fair value of financial assets and liabilities
at 31 december 2009 and 2010 the fair value and the book value of the group and company’s financial assets and 
liabilities was as follows
group and company
fair value measurements at 31 december 2010
level 1
000
level 2 
000
level 3 
000
financial asset – – –
available for sale – – –
financial liability – – 332
warrant liability – – 332
group and company
fair value measurements at 31 december 2009
level 1
000
level 2 
000
level 3 
000
financial asset – – 1106
available for sale – – 1106
financial liability – – 1630
warrant liability – – 1630
the fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged 
in a current transaction between willing parties other than in a forced or liquidation situation
the available for sale asset was initially recognised to fair value the benefit derived from the group having access to the 
gem facility which can be utilised immediately at the request of the company  initially the asset was recognised the 
same value as the underlying warrants see note 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 
during 2010 and 2009 the movement in group and company’s financial assets and liabilities was as follows
financial asset
2010 
’000
2009
 ’000
balance at the beginning of the year 1106 –
additions – 1106
change in value taken to the income statement 1106 –
balance at 31 december – 1106
financial liability
2010 
’000
2009 
’000
balance at the beginning of the year 1630 –
additions – 5794
exercise of warrant taken to retained earnings 92 749
change in value taken to the income statement 1206 3415
 balance at 31 december 332 1630
rxp2635  ar10 back aw11indd   64 20052011   1649 financial statements
65 roxi petroleum plc annual report and accounts 2010
principal financial instruments
the principal financial instruments used by the group and company from which financial instrument risk arises are as follows
•	 other receivables
•	 cash at bank
•	 trade and other payables
•	 borrowings
general objectives policies and processes
the board has overall responsibility for the determination of the group and company’s risk management objectives and 
policies and whilst retaining ultimate responsibility for them it has delegated the authority for designing and operating 
processes that ensure the effective implementation of the objectives and policies to the group and company’s finance 
function the board receives regular reports from the finance function through which it reviews the effectiveness of the 
processes put in place and the appropriateness of the objectives and policies it sets
the overall objective of the board is to set policies that seek to reduce risk as far as possible without unduly affecting the 
group and company’s competitiveness and flexibility further details regarding these policies are set out below
credit risk
credit risk arises principally from the group’s other receivables it is the risk that the counterparty fails to discharge its 
obligation in respect of the instrument the maximum exposure to credit risk equals the carrying value of these items in 
the financial statements 
when commercial exploitation commences sales will only be made to customers with appropriate credit rating 
credit risk with cash and cash equivalents is reduced by placing funds with banks with high credit ratings
capital
the company and group define capital as share capital share premium deferred shares shares to be issued capital 
contribution reserve other reserves retained earnings and borrowings in managing its capital the group’s primary 
objective is to provide a return for its equity shareholders through capital growth going forward the group will seek to 
maintain a gearing ratio that balances risks and returns at an acceptable level and also to maintain a sufficient funding 
base to enable the group to meet its working capital and strategic investment needs in making decisions to adjust its 
capital structure to achieve these aims either through new share issues or the issue of debt the group considers not 
only its 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 mainly settled 
in january 2011 as disclosed in note 32 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 us378000 
2009 us136000
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
rxp2635  ar10 back aw11indd   65 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 66
notes to the financial statements continued
currency risk
the group and company’s policy is where possible to allow group entities to settle liabilities denominated in their 
functional currency primarily us dollar and kazakh tenge in that currency where group or company entities have 
liabilities denominated in a currency other than their functional currency and have insufficient reserves of that currency to 
settle them cash already denominated in that currency will where possible be transferred from elsewhere within the group
in order to monitor the continuing effectiveness of this policy the board receives a periodic forecast analysed by the 
major currencies held by the group and company
the group and company is primarily exposed to currency risk on purchases made from suppliers in kazakhstan as it is 
not possible for the group or company to transact in kazakh tenge outside of kazakhstan the finance team along with 
its advisors carefully monitors movements in the us dollar  kazakh tenge rate and chooses the most beneficial times 
for transferring monies to its subsidiaries whilst ensuring that they have sufficient funds to continue its operations the 
currency risk relating to tenge is insignificant
31 related party transactions
the company has no ultimate controlling party
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 kuat oraziman had a beneficial interest in 425 currently 6288 of the issued capital 
of baverstock gmbh “baverstock” and was and remains a director of and holds 50 of the issued share capital of 
both vertom international nv “vertom” and vertom international bv
•	 dae han new pharm co limited “dae han” had a beneficial interest in 17 per cent of the issued share capital of 
baverstock currently 2515 
as a result of the eragon acquisition the group entered into related party transactions which include but are not limited 
to the following transactions
a  consulting services agreement
on 30 january 2008 the company entered into a consulting service agreement with vertom pursuant to this agreement 
the company allotted 46153846 ordinary shares in the company to vertom following the extension to the contract area 
of the bng ssuc on 7 may 2009 
312 loan agreements 
a  loan from kuat as at the date of the eragon acquisition
 at the date of the eragon acquisition in galaz energy bv there was a us10000000 loan borrowed from kuat 
oraziman in july 2007 initially repayable together with interest accrued at libor plus 3 in july 2009 as at 
31 december 2010 the outstanding loan in amount of us5000000 remained payable from the group and has 
been classified within shortterm borrowings note 24 
 under an agreement between the company and baverstock made on 30 january 2008 baverstock agreed to take 
responsibility for the payments of the sums due under that loan and to fully and effectively discharge indemnify and hold 
harmless the company eragon petroleum limited and as applicable galaz energy bv and bng energy bv from any 
obligation or liability arising from the terms of or in connection with of the loan agreement accordingly an asset equal to 
the fair value of the liability under the loan agreement has been recognised on the acquisition of eragon see note19
 in august 2010 galaz energy bv has provided baverstock with a loan facility of up to us10000000 at libor 7 
the amounts borrowed under this loan agreement should be used exclusively for repayment of kuat oraziman’s 
us10000000 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 us5000000 under the facility agreement was 
transferred to kuat oraziman directly by galaz energy bv to be repaid by baverstock 
b other loans from kuat oraziman 
 in january 2010 altius energy provided a loan of us3000000 to the company in order to repay the loan of 
us3000000 on time the group entered into a loan arrangement with kuat oraziman on 19 march 2010 for 
us3000000 which was lent on an interest free basis to galaz and company llp and used to repay the above 
disclosed altius energy convertible loan the loan was repaid to kuat oraziman on 12 may 2010
 the company has another loan outstanding as at 31 december 2010 and 2009 with kuat oraziman details of which 
have been summarised in note 24 
rxp2635  ar10 back aw11indd   66 20052011   1649 financial statements
67 roxi petroleum plc annual report and accounts 2010
c vertom loan to ravninnoe oil llp 
 at the date of acquisition 16 may 2007 of ravninnoe bv and its then 50 subsidiary ravninnoe oil llp there was 
a loan us7500000 due from ravninnoe oil llp to vertom international bv under a loan agreement dated 11 may 
2007 no repayments have been made in respect of this loan agreement to date
 on 24 june 2009 pursuant to the amended sale and purchase agreement made between the company ravninnoe 
bv kuat oraziman vertom and canamens as described in note 16 ravninnoe oil llp agreed to the assignment 
by vertom to canamens of 262 of the loan receivable of us7500000 and that the loan would be repayable on a 
joint demand by canamens and vertom
d transactions with canamens
 as part of the 2 joint ventures entered into by the group with canamens in relation to ravninnoe oil llp and bng 
ltd llp details of which are set out in note 16 various loans were entered into
i ravninnoe farmin
as disclosed in notes 16 and 312 the group has entered into and completed a farmin with canamens in respect 
of ravninnoe oil llp 
ii bng farmin 
as disclosed in note 16 the group has entered into and completed a two stage farm in with canamens energy 
bv in respect of bng ltd llp 
e loans in relation to lgi 
 as described in notes 26 and 322 galaz and company llp and lg international entered into a facility agreement of 
us344 million pursuant to the spa entered into on 27 april 2010
313 the interconditional agreement
in january 2009 the company announced a proposed farmout with canamens whereby the company and baverstock 
together would sell 35 of the bng contract area to canamens in return for a commitment to fund some of the bng 
contract area work programme costs the proposed transaction was subsequently amended and it was agreed 
between the company and baverstock that the company would solely sell in 2 stages 35 of the company’s 5841 
interest in bng ltd llp to canamens details of the transaction are set out in note 16 
in return for baverstock retaining its 4059 interest in the bng contract area the company baverstock the beneficial 
owners of baverstock including kuat oraziman eragon petroleum limited galaz energy bv and bng energy bv 
entered into an interconditional agreement in october 2009 whereby baverstock agreed that the remaining work 
programme funding from the original us100 million funding commitment made by the company to baverstock at the 
time of the eragon acquisition will be us84 million 
further the interconditional agreement restates that baverstock and where applicable the beneficial owners of 
baverstock continue to be bound by the operative provisions of the various agreements entered into at the time of the 
eragon acquisition including the baverstock indemnity referred to in note 312 above
the interconditional agreement also deals with the proceeds of sale received from canamens and the distribution of the 
loans under this agreement the company and baverstock agreed that the proceeds of the sale would be to the benefit 
of the company in return for baverstock retaining its effective interest in bng ltd llp this results in the company 
ultimately benefiting from 65 of the funds to be invested into bng ltd llp by canamens 
314  key management remuneration
key management comprises the directors and details of their remuneration are set out in note 6 
in september 2008 the directors and senior management agreed to deferral of their salaries and fees until such time that 
the restatement and the refund would not materially affect the company’s ability to continue to comply with existing work 
programme commitments this policy continued throughout 2009 and 2010
as at 31 december 2010 the amount due to the directors in respect of this deferral was approximately us 60000 
2009us 294000
32 events after the reporting period 
321 bng change in ownership 
on 3 march 2011 canamens bng bv has informed the group that it will not make the final payments of us119 million 
under the second stage of the sale and purchase agreement in connection with bng ltd llp as a consequence under 
the terms of the spa canamens will forfeit approximately a 623 per cent interest in the bng contract area to the group
rxp2635  ar10 back aw11indd   67 20052011   1649 financial statements
roxi petroleum plc annual report and accounts 2010 68
notes to the financial statements continued
as a result group’s interest in the bng contract area increased from 2341 per cent to 2964 per cent and canamens 
holding decreased from 35 per cent to 2877 per cent subject to receipt of the necessary government waivers under 
kazakh law 
322 galaz spa
a lgi farmin
on 27 april 2010 galaz energy bv entered into a spa with lg international corp “lgi” for the sale of 40 of the 
equity in galaz and company llp for us156 million 
as part of this transaction lgi agreed to provide a loan of us344 million to galaz and company llp under the 
terms of the loan agreement the first tranche of us20 million was applied as follows
i us85 million for the repayment of historical debt associated with drilling wells in the north west konys field
ii us84 million for the partial refinancing of loans due to the company and general corporate purposes and
iii us31 million for financing the ongoing operational costs
the second tranche of the loan is to be used for investment for ongoing development costs under the current work 
programme
on 12 may 2010 the first tranche of us20 million under the loan agreement was received as an advance by galaz and 
company llp
the sale of 40 of the equity in galaz and company llp was finalised on 20 january 2011 
323 galaz area and contract extension
on 10 january 2011 the ministry of oil and gas extended the contract territory under exploration of galaz and company llp  
on 16 february 2011 the ministry of oil and gas extended the exploration contract of galaz and company llp for two 
more years up to 14 may 2013 
324 warrants expired
on 31 march 2011 29323835 warrants issued to altius energy had not been exercised and expired
325 options issued to directors
the company issued a further 11540000 options to the company directors as disclosed in the remuneration report 
to these consolidated financial statements and 1550000 options to other employees on 12 january 2011 at an exercise 
price of 13p
the company issued a further 100000 options to an employee in accordance with the terms of the employee’s service 
contract on 1 may 2011 at an exercise price of 13p
326 loans due to kuat oraziman
the repayment dates for the loans of us4550000 and us5000000 due to kuat oraziman described in note 24 
were amended and agreed between parties on 26 april 2011 to be extended from july 2011 to july 2012 also the loan of 
us4550000 was changed from noninterest bearing to interest bearing with an annual rate of 12 
327 loan due to vertom international nv
the group entered into a two year unsecured loan facility agreement with vertom international nv on 26 april 2011 
whereby vertom international nv agreed to lend up to us6 million to the group with an associated interest of12 per 
annum the loan will be repaid out of the proceeds from subsequent farmout arrangements or from first production from 
its operating assets
328 cancellation of deal with canamens on bng
on 10 may 2011 the company came to an agreement with canamens to cancel the spa referred to in note 16 whereby 
the 35 interest previously held by canamens bv in bng llp will be returned to bng energy bv this agreement was 
reached as a result of canamen’s decision not to comply fully with the terms of the original spa and decided that it was 
in their strategic interests as well as that of roxi’s to terminate the deal canamens also agreed to novate its loans of 
us236 million to bng energy bv in return for roxi providing a commitment to pay a royalty of 15 of gross revenue 
from production on the bng license area going forward
rxp2635  ar10 back aw11indd   68 20052011   1649 roxi petroleum was admitted to trading on london’s aim market 
on 22 may 2007 with the intent to acquire controlling interests in 
and develop oil and gas assets in central asia roxi’s strategy is 
to target oil discoveries and mature exploration acreage which 
have reserves and production upside 
01 highlights
02 year in review
02 operations
07 glossary
08 timeline
10 business review
10 chairman’s statement
12 chief executive’s statement
14 governance
14 board of directors
16 directors’ report and business review
20 remuneration committee report
23 report on corporate governance
24 financial statements
24 independent auditors’ report
25 consolidated income statement
26 consolidated statement of 
comprehensive income
27 consolidated statement of changes in equity
28 parent company statement of 
changes in equity
29 consolidated and parent company 
statement of financial position
30 consolidated and parent company 
cashﬂ ow statements
31 notes to the financial statements
69 company information
uralsk
atyrau
aktobe
aktau
kyzylorda
shymkent
taraz
almaty
karaganda
astana
pavalodar
ust kamenogorsk
galaz
beibars
bng
munaily
contract areas
city
key
contents
company information
directors
mr c carver
nonexecutive chairman
mr d wilkes 
chief executive ofﬁ cer
mr j hyunsik 
chief operating ofﬁ cer
mr k oraziman
executive director
mr e limerick 
nonexecutive director
company secretary 
london registrars plc
registered ofﬁ ce and 
business address 
4th floor
haines house
21 john street
london 
wc1n 2bp
company number 
5966431
nominated adviser and broker
matrix corporate capital llp
1 vine street
london 
w1j 0ah
solicitors 
mccarthy tetrault
5 old bailey
2nd ﬂ oor
london
ec4m 7ba
chadbourne  parke llp
43 dostyk avenue
almaty 050010
kazakhstan
puxon murray llp
one royal exchange avenue
london
ec3v 3lt
auditors
bdo llp
55 baker street
london
w1u 7eu
share register
capita registrars
northern house
woodsome park
fenay bridge
huddersﬁ eld
hd8 0la
public relations 
buchanan communications
107 cheapside
london
ec2v 6dn
principal banker
citibank kazakhstan
park palace
building a
2nd floor
41 kazibek bi str
almaty 050010 
kazakhstan
company information
rxp2635  cover aw02indd   2 20052011   1709 growth through partnership
annual report and accounts 2010
almaty office
7th floor
152a karasai batyra street
050026 almaty
kazakhstan
uk office
21 john street 
london 
wc1n 2bp
website
wwwroxipetroleumcom
roxi pet rol eum plc annual report and accounts 2010
rxp2635  cover aw02indd   1 20052011   1709


Summary:
 chief executive’s statement
i	am	ve r y 	p le a s e d	to	be	a b le	to	
p r e sen t 	my 	s e cond 	r epor t	as		
c hief	e xe c u tive	o f ficer
update
in summary i would say that we have 
consolidated our position during 2010 
and have made steady progress in 
moving the development of our core 
assets forward at the same time we 
have derisked our portfolio by 
moving away from those noncore 
assets that presented higher risked 
returns at higher costs than we could 
realistically afford
we faced some challenges with delays 
in obtaining the necessary licenses to 
move our core asset’s operations 
forward during the year particularly for 
galaz due to the reorganization at the 
government’s ministries that occurred 
part way through the year which added 
to the normal timeframe for obtaining 
the necessary approvals to progress 
our projects  we also more recently 
were informed by our partner 
canamens that they decided not to 
provide all of the funding under their 
agreement to acquire an interest in 
bng llp  this presents us with some 
short term challenges in meeting our 
immediate cash obligations which will 
be met through an additional financing 
arrangement that we have now agreed 
with vertom international nv via a new 
loan facility of us6 million 
as well as the new financing 
arrangement that we have put in place 
with vertom we have also recently 
agreed with canamens to cancel the 
sale of the 35 interest in bng this 
was considered to be in the best 
interests of both parties and will allow 
roxi to seek alternate financing 
solutions for the continued 
development of the bng asset 
canamens also agreed to novate their 
loans back to roxi plc in return for 
roxi agreeing to pay to canamens a 
form of royalty payment based on 
future production achieved from bng 
llp all of these arrangements will 
ensure that we are able to achieve our 
aim to further develop the potential 
from the bng asset and at the same 
time clear the way for a new financing 
solution to be put in place for bng
we also recently received final 
approvals for the extension of the nw 
konys license area as well as the 
exploration license itself has been 
approved and extended for a further 
two years as well as the pilot 
production license being awarded to 
us so we are well placed together 
with our new farmout partner lgi to 
move this asset to production later 
this year we are in a similar position 
on bng with our pilot production 
license on south yelemes recently 
being awarded to us our plan is to 
move both assets to pilot production 
as soon as the emissions licenses 
have been granted to us by the 
ministry of oil and gas
we are still waiting for final approval 
and completion for the sale of our 
interest in ravninnoe and expect that 
this will complete during 2011 in 
respect of the sale of munaily we are 
currently renegotiating the sale to 
btc which when first negotiated 
wanted to acquire 59 of munaily 
we are now looking to sell our entire 
interest in this asset and are 
renegotiating our terms with the 
buyer the group’s remaining focus 
will be on beibars where we plan to 
farmout part of our interest to an 
investor willing to fund the drilling of 
exploratory wells that will enable us to 
assess the potential of this asset
we continue to maintain our focus on 
cost reduction initiatives and are 
currently reviewing the possible 
restructuring of our holding 
companies structure in 2011 this will 
enable a much more efficient and 
transparent legal structure going 
forward and should enable further 
cost reductions to be achieved in 
addition to those put in place in 2010
strategy
our strategy in the nearterm remains 
committed to finding new farmout 
partners for bng and beibars as well 
as achieving production from bng 
and galaz which are now close to 
achieving pilot production with oil 
discoveries having already been 
made on both assets and with the 
majority of the licensing and 
associated permits now in place to 
start pilot production in the latter part 
of 2011 this will allow us to develop 
galaz and move onto exploration of 
i 	 w oul d 	 s ay 	 th at 	 we 	 h a ve 	 c ons ol ida te d 	 ou r 	
p os i ti o n 	 d u r in g 	2010 	 a nd 	 h a ve 	 m a de 	 s te a d y 	
pr og r e s s 	 in 	 mo v i ng 	 the 	 dev e lo p m e n t 	 of 	 ou r 	
c or e 	 a s se ts 	 f o r wa r d 
year in review
roxi petroleum plc annual report and accounts 2010 12
rxp2635  ar10 front aw11indd   12 20052011   1650 deeper horizons in bng where  
we believe much greater potential 
can be exploited based on the 
results from our recent 3d seismic 
work completed
as we move to pilot production from 
our two core assets we will also look 
for further acquisitions into producing 
assets in kazakhstan
financing arrangements
the completion of the previously 
announced lg deal in january 2011 
provided not only the funding 
necessary for the further 
development of the nw konys field 
but also funds that helped roxi 
repay some of its short term loans 
as well as much needed additional 
shortterm financing for roxi’s fixed 
costs going forward 
in terms of the financing of bng 
now that we have cancelled the deal 
with canamens this will allow us to 
find an alternative financing solution 
for the bng project this will remain 
a priority in the near term to enable 
us to fund the exploration and 
development of the bng operations 
going forward
financial highlights
the consolidated income statement 
on page 25 still reflects the fact that we 
have historically been an exploration 
company with no commercial 
production to date the results for the 
year were impacted by the impairment 
of our ravninnoe asset after our 
decision to sell our ravninnoe interest 
additionally the partial disposal of our 
interest in bng to canamens released 
some of the unrealized currency 
translation losses that had been 
capitalized prior to the devaluation of 
the national currency 
the advances received from the lgi 
deal which completed in january 
2011 enabled us to repay some of 
our loans to shareholders that fell 
due during the course of 2010 this 
was important to protect shareholder 
value and prevent the possibility of 
further dilution of the shareholder 
interests in roxi at the same time 
the proceeds from the disposal of 
the 40 interest in galaz and 
company llp provided useful cash 
injection into the group that will 
sustain us whilst we prepare for pilot 
production from our two core assets 
in the latter part of 2011 these 
factors together with the cost 
reduction initiatives put in place 
during 2010 will mean that we are in 
a much better position to finance our 
transition to production and 
cashflows than in the past and have 
managed to convert some of our 
historical short term financing 
arrangements to longer  
term debt with our partners that will  
be repaid out of initial production  
from our assets
infrastructure
roxi’s activities are run out of our 
principal office in almaty 
staffing
the roxi group now employs in total 
86 staff all of whom are based in 
kazakhstan we have 62 in almaty 
and 24 in the regional and field 
offices of these employees 9 are 
technical staff 17 are financial staff 
14 are operational staff and 46 fulfil 
other activities 79 of our staff are 
kazakh nationals
changes to the board and executive 
management team have been 
summarised in the chairman’s report 
social programmes
under kazakh regulations part of our 
obligations under various work 
programmes on the assets in which 
we have interest are paid in the form 
of contributions to local social 
programmes in 2010 roxi made 
significant contributions to 
•	 kyzylorda region social fund  
211500 galaz and
•	 mangistau regional social 
obligation fund 625000 bng
these contributions while 
mandatory help secure the good 
standing of the company with the 
local regional authorities and with 
centrally based regulators roxi is 
pleased to have assisted in the 
developments of these projects 
environmental
no significant environmental issues 
have surfaced at any of the properties 
acquired to date compliance with 
environmental regulatory bodies is 
being managed from both the 
kyzylorda and almaty offices
kazakhstan
kazakhstan continues to develop  
and is constantly improving its legal 
framework and tax legislation to 
achieve the right balance between  
the need to encourage new 
investment into kazakhstan and 
existing companies who operate 
business in kazakhstan and the 
state operating in kazakhstan in 
such times of evolution can from time 
to time present challenges 
as a kazakh based operation with a 
majority of asian investors we believe 
we are ideally placed to deal with any 
issues as they arise and see in the 
mediumterm some of the difficulties 
being encountered by other less 
integrated international companies 
 as an opportunity for growth
outlook
we look forward with confidence as 
both of our core assets move closer 
to production in 2011 bringing 
much more stability to roxi’s 
operations going forward we will 
continue to be challenged with 
finding the right financing solutions 
for the exploration of some of the 
deeper prospects on bng however 
we believe that with this in place 
together with the ongoing 
development of the nw konys field 
the transformation process for roxi 
will be complete moving us from an 
exploration company to an oil 
producer and ultimately realizing 
value for our shareholders 
david wilkes
chief executive officer 
19 may 2011 
year in review
13 roxi petroleum plc annual report and accounts 2010
rxp2635  ar10 front aw11indd   13 20052011   1650