It is spending the cash to produce LPG and condensate from natural gas supplied by Ken Makmur Holdings from the Rakushechnoye field.

Ken Makmur has a deal in place to extract 350 tonnes per day of LPG and 100 tonnes per day of condensate from the 100m cbf of gas produced by CaspiOil Gas.

It will meet the initial costs by paying $125m in cash and issuing redeemable convertible preference shares worth $80m.

Ken