Roxi Petroleum enters $20m agreement with BOCO

Oil and gas explorer Roxi Petroleum has entered a subscription agreement with Hong Kong-based BOCO limited to raise $20m at above the current market price.

The London-listed group said the proceeds would be used to speed up the development of its flagship BNG asset.

Under terms of the agreement, BOCO will subscribe for 75,585,790 new ordinary shares at a price of 18p per share, which represents a premium of approximately 16% to the closing mid- market price on 16 April 2015.

Upon completion of the deal, BOCO will hold around 7.87% of the enlarged share capital.

Roxi chairman Clive Carver described the deal as an important step for the group, adding funding was crucial in the current market environment.

“In the current market security of funding is more important than ever,” he said.

“Those with access to funding are able to develop their assets more cheaply than in recent years.”

Roxi shares were up 10.31% to 17.10p at 09:18 on Friday.