Roxi agrees option on $ 425 mln Kazakh deal

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LONDON, Oct 4 (Reuters) Acquisitive Kazakhstan-focused oil and gas explorer Roxi Petroleum said on Thursday it had signed an option to buy 50 percent of ADA Group for 5 million.

Ada Group is the 100 percent owner of two oil and gas assets near Aktobe, Kazakhstan, and is exploring in the West Zhanazhol and Egizkara areas, Roxi said in a statement.

Roxi can exercise the option on or before March 31, 2008.

Roxi's shares have been suspended since it said in August it was buying a 59 percent stake in Eragon Petroleum, another larger oil firm with assets in Kazakhstan, for 0 million, which it is funding by issuing 8.5 million in shares.

Roxi said one option for the Ada deal would involve paying million in cash, with the rest settled by issuing new shares at 80p a share.

Roxi was valued at 1.6 million when its shares last closed, on Aug. 17, at 38-1/2p, having fallen 32 percent before they were suspended, three sessions before the Eragon deal was announced.

The shares floated at 38p on London's Alternative Investment Market in May, when it raised 38.9 million pounds (.9 million) to fund joint ventures in Kazakhstan.

REUTERS SR SSC1314

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