Caspian Energy Inc. Authorizes Aral Petroleum Capital to Pursue Kazakh Rehabilitation Procedures
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 9, 2015) - Caspian Energy Inc. (NEX:CKZ.H) ("Caspian") announces today that, after careful consideration of all available alternatives, the board of directors of Caspian (the "Board") has determined that it is in the best interests of Caspian and its wholly-owned subsidiary, Aral Petroleum Capital LLP ("Aral"), to authorize Aral to seek protection from its trade creditors under the Law of the Republic of Kazakhstan On Rehabilitation and Bankruptcy (the "Bankruptcy Law") through implementation of rehabilitation procedures (the "Rehabilitation Procedures").
As noted in a news release dated August 4, 2015, Aral has a number of outstanding trade payables that it has been unable to discharge due to its lack of operational revenues and positive cash flow. Some of these trade creditors have pursued litigation in Kazakhstan that has resulted in Aral's bank accounts being frozen. Pursuant to the Bankruptcy Law, Aral will apply to the court for implementation of the Rehabilitation Procedures. If Aral is able to successfully negotiate the Rehabilitation Procedures with its creditors and obtain the requisite court approval, it will prevent trade creditors and others from commencing litigation against Aral for payment of outstanding amounts and afford it the ability to restructure its financial affairs for a period of up to five years. The process of applying for the Rehabilitation Procedures will result in an automatic moratorium of up to two months on claims by creditors regardless of whether or not negotiations are successful. There can be no assurance that Aral will be successful in negotiating the Rehabilitation Procedures.
"The Rehabilitation Procedures have the potential to facilitate Aral's access to its existing loans and other capital, and provide it with additional time to focus on recommencing oil production. If successful, this will generate operational cash flow and help to stabilize the economic outlook for both Caspian and Aral," said Michael Nobbs, Chairman of the Board.
A further update will be provided as additional information becomes available.
Caspian is an oil and gas exploration and development company, operating in Kazakhstan
through Aral, which has a number of targets in the highly prospective Aktobe Oblast of Western Kazakhstan. Caspian indirectly holds, through its interest in Aral, an exclusive licence pursuant to an exploration contract, which entitles it to explore and develop certain oil and gas properties known as the "North Block," an area of 1,467 square km, and a production contract for the area known as "East Zhagabulak".
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which we refer to herein, collectively, as "forward-looking information". Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved" and include statements relating to the Rehabilitation Procedures, planned production, and exploration activities of Aral. Caspian's actual performance, developments and/or results may differ materially from any or all of the forward-looking statements. Further information which may cause results to differ materially from those projected in the forward-looking statements is contained in Caspian's filings with Canadian securities regulatory authorities. All material assumptions used in making forward-looking information are based on management's knowledge of current business conditions and expectations of future business conditions and trends. Although Caspian believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Caspian does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.
Source: Marketwired (Canada)
(November 9, 2015 - 6:01 PM EST)
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