- Caspian Sunrise said it would raise capital through the placing of shares at a discount to purchase drilling equipment, including four rigs, for a total of $7m.

The company said it would issue of 58,333,333 shares, representing 3.2% of total shares outstanding at an issue price of 10p per share, a 3.4% discount to the closing share price of 10.35p on 30 August.

The equipment to be acquired comprised principally four drilling rigs, two cranes, pumps, generators, a blow-out preventor and 12 vehicles, including trucks, crew buses and pickup trucks.

A new division, Caspian Sunrise Services, formed to take the lead in the development of the group's assets, would lease the purchased equipment on an arms-length basis from the Eragon Petroleum UAE, the group company which would own the equipment, Caspian said.

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