Roxi Petroleum reaches agreement over royalty payments

Oil and gas explorer Roxi Petroleum has reached an agreement to cancel royalty payments from its flagship asset.

Under the terms of the deal, the London-listed company has issued 46.6m shares in the company to Canamens Ltd and Sector Spesit IV, which will no longer receive future royalty payments from the group’s flagship asset in Kazakhstan.

The shares issued represent a 5% stake in the enlarged issued share capital, the group said in a statement.

"This is an excellent deal for Roxi,” said group chairman Clive Carver.

“On completion, we have removed a future uncapped liability, which may have affected the company's ability to secure traditional debt funding and replaced it with a supportive institutional shareholder.”

Roxi shares were up 3.61% to 10.75p at 1301 BST on Friday.