Caspian Energy Inc.
TSX : CEK
AIM : CEK

April 05, 2006 16:34 ET

Caspian Energy Inc. Announces Closing of $50 Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - April 5, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Caspian Energy Inc. (the "Company" or "Caspian") (TSX:CEK) (AIM:CEK), an oil and gas exploration company operating in Kazakhstan, is pleased to announce that its previously announced underwritten private placement of common shares closed today. An aggregate of 19,609,000 common shares were issued and sold under the private placement (including the common shares issued as a result of the full exercise by the underwriters of the option to purchase up to an additional 5,883,000 common shares), at a price of $2.55 per share, resulting in gross proceeds of $50,002,950 to Caspian.

The private placement was underwritten by a syndicate led by Orion Securities Inc., and including Jones, Gable & Company Limited. As partial consideration for their services under the private placement, the Corporation also issued to the underwriters warrants exercisable to purchase up to 588,270 common shares of Caspian, at a price of $2.77 per share, at any time on or before April 5, 2008.

Contact Information

  • Caspian Energy Inc.
    William Ramsay
    President and Chief Executive Officer
    00 7 3272 54 31 27
    or
    Bell Pottinger Corporate and Financial
    Geoff Callow/Elizabeth Fievet
    00 44 20 7861 3232