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LONDON - Caspian Sunrise plc has completed the acquisition of CS Energy LLP, which holds the license for the West Shalva Contract Area, a significant move in the company’s expansion strategy. The deal, initially approved by independent shareholders on April 25, 2024, was finalized with the re-registration of CS Energy LLP, making Caspian Sunrise the beneficial owner of the new asset.
The West Shalva exploration license, renewed in 2023 for six years, includes a commitment to drill one well to a depth of 2,660 meters, targeting at least two intervals in the Triassic formation. The anticipated cost for this project is set at $3 million. A G40 rig from the BNG Contract Area will be transported to West Shalva for the drilling expected to start in the second quarter of 2025. If successful, production could begin in the third quarter of the same year.
The acquisition terms involve issuing up to 198,412,698 shares to Altynbek Bolatzhan, the vendor of CS Energy LLP. The deal includes an initial issuance of 99,206,349 shares at 4p each, with the possibility of an additional 99,206,349 shares upon the commencement of oil production from the area. Moreover, the first $5 million in oil sales revenue from West Shalva under the group’s ownership will be paid to the vendor.
Following the acquisition, the company’s enlarged share capital now stands at 2,354,184,832 shares. Altynbek Bolatzhan’s stake has increased to 5.36% of the shares in issue, while the Oraziman Family Concert Party’s aggregate holding now represents 50.57%. If the Additional Consideration Shares are issued without further share issuances, the Oraziman Family Concert Party’s share would increase to 52.56%.
The Initial Consideration Shares are expected to be admitted to trading on AIM around April 23, 2025. These new shares will have the same ranking as the existing ordinary shares currently traded on AIM.
This announcement, based on a press release statement, marks a pivotal step for Caspian Sunrise in strengthening its position within the oil exploration and production sector.
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