Caspian Holdings has raised £200,000 and is progressing with its new US interests.
The oil and gas explorer and producer has raised £200,000 at 10p a share from a share placing with the pension fund of director Michael Masterman. The company had a credit facility which had £200,000 available to be drawn down. Net debt was £693,000 at the end of 2007.
Caspian is acquiring a 100% interest in the Serri Pine Meadows lease in Bakersfield, California. There are oil wells on the border of the lease and a potential exploration target on the lease. Caspian has to drill at least one well before the end of the year.
It is acquiring the lease from Vitoriano Serri Oil Company and will pay a 20% royalty on any production.
Caspian’s existing assets are in Kazakhstan. Last year’s revenues nearly halved to £821,000 because exports were suspended in April 2007, but a reduction in admin expenses meant that the reported loss more than halved to £1.57m.
In February, production at its Zhengeldy oil field was suspended. Caspian needs to have its development programme approved by the authorities. This includes an application for an export quota. Production remains suspended.
The shares rose 0.25p to 3.375p.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.