LONDON: Caspian Sunrise has announced the successful execution of documents for the acquisition of CS Energy LLP, the license holder of the West Shalva contract area, for a total consideration of up to $15 million.

The acquisition hinges on several conditions, including the crucial approval from the company’s shareholders at the upcoming General Meeting scheduled for 11:00 a.m. on April 26, 2024. Shareholders are set to receive the Circular today, which includes the Notice of General Meeting and outlines the expected timeline of key events and the Chairman’s statement.

The deal is structured in three payments:

• An initial $5 million upon completion, compensated by issuing 99,206,349 Ordinary Shares at 4.0p each.
• Another $5 million following the first oil production at West Shalva, through the issuance of an additional 99,206,349 Ordinary Shares at the same price.
• The final tranche involves the first $5 million in revenue from West Shalva under the group’s control, to be paid in cash.

The acquisition is poised to increase the Concert Party’s shareholding from 48.49% to a potential 52.66%, necessitating a waiver from Rule 9 of the Takeover Code. The West Shalva area, spanning approximately 25 km² in Western Kazakhstan’s oil-rich Zhetybay Steppe, is adjacent to the established Shalva field. With favorable geological features and easier drilling conditions, West Shalva presents a lower-risk addition to Caspian Sunrise’s asset portfolio.

The deal also awaits the green light from the Ministry of Energy of the Republic of Kazakhstan, marking the final step in this strategic acquisition aimed at bolstering Caspian Sunrise’s position in the energy sector.