Sign up USA
Proactive Investors - Run By Investors For Investors

Caspian Energy completes Aral Petroleum Capital acquisition

Caspian Energy completes Aral Petroleum Capital acquisition
Caspian says it has not changed its goal of exploring, developing and producing oil and gas from the highly prospective North Block Licenses in Kazakhstan

Caspian Energy (CVE:CKZ.H) now has 100 percent ownership of Aral Petroleum Capital LLP, after it purchased all remaining interests adding to its 40 percent stake in Aral Petroleum Capital LLP, the operating entity of the East Zhagabulak oil field and North Block Licenses in Kazakhstan, not already owned by the Company. 

 

Caspian appointed Yelena Tselenko as Interim Chief Financial Officer, who assumed this role on May 15, 2015, to help the company complete the Aral acquisition, replacing Brian Korney, who is now Caspian’s interim Chief Executive Officer, corporate secretary and director. 

 

Caspian Energy started to take over control of Aral Petroleum Capital, the operating entity of the East Zhagabulak oil field in Kazakhstan for an aggregate price of US$47.1 million. 

 

In connection with the acquisition, through a share swap deal first announced on August 1, 2014, Caspian said it has received conditional approval from the TSX Venture Exchange. 

 

The Transaction was completed pursuant to the amended share purchase agreement dated November 11, 2014 between the Company, its wholly-owned subsidiary Caspian Energy Canada Limited, Asia Sixth Energy Resources Limited ("Asia Sixth"), Groenzee B.V. ("Groenzee"), a wholly-owned subsidiary of Asia Sixth, and four other parties. 

 

Under the deal, the company is to issue Caspian shares to the other holders of Aral shares in a share swap deal. Upon the closing of the share purchase agreement, Asia Sixth will have a 35.1% stake in Caspian, while Meridian Capital and Firebird will own, respectively, 26.0% and 8.2% of Caspian. 

 

On closing of the deal, Sixth Energy, which is the majority shareholder of Asia Sixth, and Meridian will provide a secured loan facility of up to US$21.5mln to Aral.  

 

"Today's closing marks the culmination of almost a year's work on a comprehensive restructuring transaction which has truly transformed the organization and management of Caspian", said Caspian Energy’s chairman, Michael Nobbs.

 

Caspian says it has not changed its goal of exploring, developing and producing oil and gas from the highly prospective North Block Licenses in Kazakhstan.  

 

As previously announced, operations at Aral were temporarily suspended due to sharply lower crude oil prices. Prior to the shutdown, Aral was in a position to produce about 1,300 barrels per day from some of the East Zhagabulak oil field, generating positive cash flows from its operations from a fraction of Aral's license areas.  

 

The company is striving to keep the lowest possible costs, suggesting that it will resume operations as soon as the Board determines that economic conditions will sustain profitable production.

 

Until then, “Caspian and Aral will focus their attention to future activity on the greater North Block, to be ready to invest further capital in our exploration and development activities," said the company in a statement. 

 

The government of Kazakhstan approved the sale, which has also been accepted by the TSX Venture Exchange’s NEX board.

The conditions of the NEX's approval included, among other things, execution of the Loan Agreement and approvals by the Kazakhstan government of the transfer of the Aral interests to Caspian.

 

 

View full CEK profile View Profile

Caspian Energy Inc Timeline

Related Articles

picture of wind turbines
June 12 2017
The construction of more than 600 wind turbines was funded by securing US$1bn of financing during the year.
Oil rig drilling
October 19 2017
In a trading update in May, the AIM-listed firm said discussions over contracts are taking longer than expected to conclude, although it still anticipated orders under negotiation will come through in its financial year ending in June 2018
oil and gas operations
October 30 2017
Chief executive Hugh Mackay highlighted the oiler sees " so much activity on so many fronts in the months ahead".

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use