One of the day's biggest fallers so far is Aim-listed Roxi Petroleum, after a partner in its key strategic field in Kazakhstan said it would not make an expected $12m payment.
Roxi bought a 58.41% stake in the BNG field in March 2008, and agreed to sell 35% to Norway's Canamens. Now Canamens has said it will not make a final payment due under the agreement, thus forfeiting a 6.25% share, and as a result, Roxi's stake will rise from 23.41% to 29.66%. More crucially, it means Roxi and the other shareholder in BNG, Baverstock, will need to raise more funding between them to carry on the longer term development of the site. Roxi chief executive David Wilkes said:
We have been aware that Canamens shareholders have been conducting a strategic review of its operations. It is disappointing that Canamens has decided not to invest the full consideration under the agreed terms of the existing sale and purchase agreement.
Roxi shareholders would agree. Its shares have dropped 15% to 5.05p.
