Caspian Sunrise intends to buy CS Energy LLP for $15 mln

ALMATY. April 9 (Interfax) - Caspian Sunrise, a Kazakhstan-based oil and gas company, intends to purchase Australian CS Energy LLP, which hold licenses for the West Shalva contract area, the company said in a press release.

CS Energy LLP will be acquired for a maximum consideration of $15 million, which will be split in three tranches.

The first tranche of $5 million will be paid on completion of the acquisition by the issue of 99,206,349 ordinary shares at a price of 4.0 pence per share; a further $5 million is to be paid following the first oil at West Shalva by the issue of a further 99,206,349 ordinary shares to be issued at a price of 4.0 pence per ordinary share; and the final tranche will be the first $5 million revenue from West Shalva to be payable in cash, according to the press release.

The acquisition will also be subject to approval by Kazakhstan's Energy Ministry.

The West Shalva contract area is rectangular in shape and extends over approximately 25 square kilometers. It is located in the oil producing Zhetybay Steppe Area in the Mangyshlak region of west Kazakhstan.

Caspian Sunrise PLC is a Kazakhstan-based oil and gas exploration and production company established in October 2006 and listed on the Alternative Investment Market of the London Stock Exchange in May 2007.