Caspian Services Inc. (OTCBB:CSSV) announced that it has completed the acquisition of Aral Petroleum Capital. The acquisition included operating entity licenses in Kazakhstan. The transaction had been in the works since August 2014, with an amendment being reached in November 2014. The announcement came close to another announcement from The Sixth Energy Limited. Sixth Energy announced that it had acquired all the securities of Caspian Energy Inc. The transaction by Sixth Energy has been estimated to be 33.4% of post-closing and outstanding shares of Caspian Energy.
Caspian Services already held 40% shares in Aral Petroleum, before going ahead with a complete takeover. As per the agreements of its dealings with Sixth Energy, Caspian has been able to get Aral’s debt financing from Sixth Energy consolidated. After the acquisition of Aral, Caspian Services has acquired a new management team and a reconstituted board.
The acquisition has also benefited the company financially, since it gained $2.5 million in short-term funding from Aral’s loan facility. Caspian Services has always been focused on exploration of oil and gas in North Kazakhstan. The acquisition of Aral is targeted towards the same. Aral had previously halted operations in Kazakhstan after the downfall of oil prices. Caspian services now aims to resume those operations, with fresh spirits.
The transaction made by sixth energy has been valued at $0.13 per share. In addition to this, Sixth Energy will also hold some of its shares in Aral. Aral’s holdings in North Kazakhstan had been projected to produce positive cash flows. It was also estimated that the oil fields would produce around 1,300 barrels of oil per day. Caspian services aims to restore operations at these fields in phases, as per the economic conditions change. The dealings between the three companies have resulted in several changes to the board and administration.
Caspian Services Inc. (OTCBB:CSSV) closed at $0.017, after losing 7.61% on May 22. The company has 52.66 million shares being traded in the market, with a 52-week range of $0.01-$0.05.
