Caspian Energy Inc.

December 21, 2009 09:24 ET

Caspian Energy Inc.: Ontario Superior Court of Justice Dismisses Dissident Shareholders Application

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2009) - Caspian Energy Inc. (TSX:CEK) ("Caspian" or the "Company") announced today that the Ontario Superior Court of Justice dismissed the application brought by Mr. Maurizio Barnaba, a director of the Company, and certain other shareholders seeking, among other things, an order declaring that the vote taken at the special meeting of the Company's shareholders on Tuesday December 1, 2009 approving the previously announced amendments (the "Amendments") to the terms of the Company's US$16,000,000 aggregate principal amount of secured convertible debentures due March 2, 2011 is invalid and of no force or effect.

The Amendments will now be implemented and the Company will proceed to issue 23,188,931 common shares ("Common Shares") and 2,318,893 Common Share purchase warrants ("Warrants") to the debentureholders in satisfaction of the interest payments owing to the debentureholders in respect of the quarters ended March 31, June 30, and September 30, 2009. Each Warrant will entitle the holder thereof to purchase one additional Common Share for a period of two years from the date of issue. Of the 2,318,893 Warrants to be issued, 445,030 will have an exercise price of $0.03669 per Common Share, 995,917 will have an exercise price of $0.06057 per Common Share and $878,346 will have an exercise price of $0.0652059 per Common Share. 

Caspian is an oil and gas exploration and development company, operating in Kazakhstan where it has a number of targets in the highly prospective Aktobe Oblast of Western Kazakhstan. The Company holds an exclusive licence which entitles it to explore and develop certain oil and gas properties known as the "North Block", an area of 3,458 square km, through a 50% stake in Aral Petroleum Capital LLP.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Caspian. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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