Caspian Sunrise gets regulatory OK for Kazakhstan sales

(Sharecast News) - Caspian Sunrise announced on Wednesday that it has received regulatory approval for the $88m sale of its shallow MJF and South Yelemes structures in Kazakhstan, unlocking a further $46.4m in proceeds and clearing the final substantive hurdle to completing the transaction. The AIM-traded oil and gas company said on Thursday that total proceeds received to date from the disposal now stood at $61.7m.

A further $7m was expected later in the month upon the formal transfer of operational control, which would mark the completion of the sale.

An additional $5.2m would be paid in equal instalments over a 12-month period beginning six months after completion, and a further $13.8m is due over time to settle remaining historic cost obligations.

The transaction was approved by shareholders in September last year, and since then the MJF and South Yelemes assets had been carved out into a new Kazakh entity in preparation for transfer to the buyer.

Caspian Sunrise noted that the regulatory consent was the final key step outside the control of the parties.

Proceeds from the sale would be used to fund development across the company's remaining asset base, including deep structure exploration at BNG, further work at West Shalva, acquired in April, and the ongoing acquisition of Block 8.

Funds would also support potential new projects and general working capital.

The company added that, with the regulatory process now complete and most proceeds received, it would resume work on the audit of its 2024 accounts.

Publication of the audited results was expected to lead to the lifting of the current suspension in the trading of its shares.

Reporting by Josh White for Sharecast.com.