Roxi Petroleum saw its shares more than double in value after a Kazakh businessman said he would invest 40m dollars in the firm at a huge premium to the current price.

Shares rocketed to 4.6p when the AIM opened, after the news that investor Kairat Alpamysovich Satylganov had agreed to subscribe for over 355m new shares at about 7p per share.

This would give the former chairman of two of the largest Kazakh banks, Halyk Bank and ATF Bank, a 37.5% holding in the firm.

However, as Roxi is not currently governed by the UK Takeover Code the deal would not trigger an automatic takeover offer.

Chairman Clive Carver said the investment would take care of the funding needs of Roxi for the foreseeable future and allow the Roxi management team to focus on developing its principal assets.

The first $10m will be paid on January 31st 2013, in exchange for the issue to Satylganov of 88,791,429 new shares.

This would represent around 14.57% of Roxi's current issued ordinary share capital and 12.71% of its enlarged share capital.

The remaining $30m will be called down by the board in exchange for a further 266,374,287 new Roxi shares, to fund work programme commitments at the company's assets.

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Roxi Petroleum (RXP) share price