Acquisition Update

Roxi Petroleum Plc
22 August 2007

Roxi Petroleum Plc ('Roxi Petroleum' or the 'Company')



Acquisition of controlling interests over three new oil and gas assets in
Kazakhstan


22 August 2007


Highlights

*    Executed sale and purchase agreement to acquire controlling interests in 
     three new oil and gas assets in Kazakhstan 

*    Assets cover 1200 km2 in Western Kazakhstan in the PreCaspian and Turgai 
     Basins

*    Assets provide access to high quality exploration acreage and early 
     development of reserves

*    Total consideration of US$190m to be satisfied predominantly by issue of new
     shares at US$1.30 (65p) per share

*    The agreement includes an option to acquire associated assets for US$60 
     million



Roxi Petroleum, created to acquire controlling interests in and develop oil and
gas assets in Central Asia, initially focusing on Kazakhstan, announces that it
has entered into a sale and purchase agreement to acquire controlling interests
over three oil and gas assets in Western Kazakhstan. The transaction includes
additional options to further increase Roxi Petroleum's interest in the assets.



The assets being acquired cover approximately 1200 km2 in Western Kazakhstan in
the PreCaspian and Turgai Basins. The assets give Roxi Petroleum access to large
high quality exploration acreage and further opportunities for early development
of reserves already on the State balance.



The first asset is an exploration contract which covers an area of over 1100
km2, not far from the Tengiz oilfield in the Pre-Caspian basin of West
Kazakhstan. The contract for the block was signed earlier this year. The block
is considered by the Company to be highly prospective in both the Jurassic
sandstone at depths of 2500-3000m and in the pre-salt Carboniferous sandstones
and carbonates at depths of 4000-5000m. Exploration in this area since the
1980's has resulted in the development of several Jurassic discoveries in the
surrounding acreage.



The second asset is an Exploration and Production Contract in the Turgai Basin
near the town of Kyzylorda in central Kazakhstan. The field contains 'probable'
reserves, in Cretaceous and Jurassic sandstones, on a wrench fault structural
trap. There are four wells on the block with three delineating the oil-water
contact and one well drilled higher on the structure tested at rates of up to
70m3/d (500bopd). Exploration upside exists deeper in untested Triassic
sandstone targets.



The third asset is the rehabilitation of an oilfield in the southern Pre-Caspian
basin. The field produced at low rates with high water cut from Cretaceous and
Jurassic sands at depths of 500-1200m. The field was re-licensed in 2004.  A
full evaluation of remaining reserves needs to be undertaken.  Exploration
potential exists deeper in the Permo-Triassic reservoirs.



The Company will acquire a 59% controlling interest in Eragon Petroleum plc, a
UK holding company which, through its subsidiaries, has controlling interests in
the three assets.





More than 99% of the purchase consideration is to be satisfied by the issue of
approximately 145 million new Roxi Petroleum shares at a fixed price of US$1.30
(65p at an exchange rate of 2US$ per 1£) per share. The consideration shares
will represent approximately 46 per cent. of the Company's enlarged share
capital.



The acquisition will constitute a reverse takeover under the AIM rules and also
fall within the ambit of Rule 9 of the City Code.  Accordingly, completion of
the acquisition, and the resumption of trading in Roxi Petroleum shares are
conditional upon, inter alia, the publication of an Admission Document on the
enlarged company, obtaining a Rule 9 waiver from the Takeover Panel, and
approval by the Roxi Petroleum shareholders at a forthcoming extraordinary
general meeting.



The acquisition follows the Company's strategy of acquiring further assets in
Central Asia.

On completion of the acquisition, Roxi Petroleum's management will have
operational and financial control of the three oil and gas fields.



The Company will provide detailed information regarding the acquisition in the
re-admission document which will be published as soon as practical; however,
given the work involved this is expected to take several months.



The company remains committed to releasing its interim results for the period
ending June 2006 on 7th September.



Commenting on the potential acquisitions Rob Schoonbrood, Chief Executive
Officer of Roxi Petroleum said:



'These acquisitions mark a step change in the operational profile of Roxi
providing additional scope for early production whilst also further bolstering
the upside potential of the Company.



The acquisitions are part of our stated strategy of adding value by following a
dual track programme: operational development combined with strategic
acquisitions. We shall continue to drive the Company forward, working with our
local partners to achieve our goal of making Roxi Petroleum a significant force
in the region and creating further value for our shareholders'.





Qualified person



Duncan McDougall, Technical Director of Roxi Petroleum, has 25 years
international experience of exploration, appraisal, and development of oilfields
in a variety of environments. He began his career in the North Sea with
Charterhouse Petroleum and BP Exploration as exploration and development
geologist.  For the past 15 years, he has been advising, through his firm
Saxford Limited, a large variety of companies on the purchase and development of
oil and gas assets in Africa, Europe, the Far East and Asia, with the large
majority in the Former Soviet Union region.  He has compiled, read, and approved
the technical disclosure in this regulatory announcement.





Enquiries:



Roxi Petroleum Plc   Clive Carver                  Tel:  [phone]
College Hill         Paddy Blewer  / Nick Elwes    Tel:  [phone]
W H Ireland Ltd      James Joyce/David Porter      Tel:  [phone]


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