- Caspian Sunrise said planned to acquire a vessel capable of drilling exploration wells in extremely shallow water for $25m in shares, in a related party transaction.

The Caspian Explorer would be bought for around 160.3m shares in the company, issued at 12p each.

The majority owner of the vessel is a member of the Oraziman family, which would increase its holding in Caspian Sunrise to 44.2% from 42.9% as a result of the sale.

Shareholders would be given the chance to vote on the deal on 13 February.

'To date Caspian Sunrise has focused exclusively on on-shore exploration and production,' the company said.

'In parts of the Northern Caspian Sea, where the company's management believe there are attractive oil producing prospects, the water levels are extremely shallow and cannot be explored with traditional deep water rigs.'

'The independent directors believe the Caspian Explorer to be the only currently operational drilling vessel of its type capable of operating in water as shallow as 2.5 meters in the Caspian Sea.'

'Further, given the lead times and construction costs, the independent directors do not expect a new competing drilling vessel to enter the market in the next few years.'

At 1:23pm: [LON:CASP] Caspian Sunrise Plc Ord 1p share price was -0.35p at 9.05p

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