29th Apr 2009 09:23
Caspian Holdings Plc
("Caspian" or the "Company")
29 April 2009
Trading Update
Caspian Holdings (AIM:CSH), the oil and gas development company with assets in the USA and Kazakhstan provides the following trading update
Kazakhstan
Caspian retains the right to appeal the judgement on the Zhengeldy sub soil use contract held by Taraz LLP ('Taraz'), a 100% subsidiary of the Company as announced on 11 February 2009. The Company has the right to appeal this judgement up until 21 January 2010.
In parallel, the Company is progressing options to sell both core and non-core field equipment at the Zhengeldy field.
United States Assets
At current low oil prices, the United States oil assets, through its 50% holding in Black Gold of Kentucky and its interest in the Pine Meadows lease, held by the Company are continuing to be evaluated. These assets will continue to be held pending a recovery in energy markets.
The Pine Meadows lease will expire on 29 May 2009 and the Company is reviewing its options as to its continued participation in this lease.
Discussions with Noteholders and Creditors
As announced on 11 February 2009, the Company has been in discussions with its noteholders and creditors to convert outstanding debt to equity and a further announcement on this will be made by the Company in due course.
In the event that this reorganisation is not finalised, the Company will not be able to meet its obligations when they fall due.
Working Capital
The Company is not currently generating revenue and can not continue to support its projects without generating cash from one or more of them or by raising additional capital. The cash balance of the Company has been carefully managed over the last three months and expenditure remain very low. The cash balance is currently around USD15,000 and the Company expects to boost cash balances in June as part of planned equipment sales.
Creditors have been supportive as the Company has worked through the proposed restructuring and debt for equity swap with noteholders as indicated above .
With the support of noteholders and creditors, the Company can continue to trade through to June 2009 when the proposed realisation of field equipment will commence. Failure to complete the proposed debt equity swap or actions by creditors would result in the Company not being able to continue to trade.
The Company will continue to update the market as required under the AIM Rules.
-Ends-
Enquiries:
|
Caspian Holdings Plc |
Grant Thornton UK LLP |
Hoodless Brennan |
|
Michael Masterman |
Fiona Owen |
Luke Cairns |
|
T: +44 (0) 7791 288381 |
T: +44 (0) 20 7383 5100 |
T: +44 (0) 20 7538 1166 |
|
www.caspianoil.co.uk |
Related Shares:
WRES.L