UK-based oil and gas exploration and production company Caspian Sunrise has purchased drilling equipment from UAE-based Eragon Petroleum.

The equipment purchase is valued at $7m under the issuance of 58.3 million new ordinary shares, which represents 3.2% of Caspian’s existing share capital priced at 10p a share.

Caspian said that it has already used most of the equipment on a rental basis.

The purchased equipment primarily includes four drilling rigs, two cranes, pumps, generators, and blow-out preventers, as well as 12 vehicles such as trucks, crew buses, and pickup trucks.

The company has commenced a ten-well infill drilling on the MJF structure, which provides direct access to rigs and other necessary equipment.

Caspian now aims to complete the ten-well drilling programme soon, when compared to the earlier 20-month period estimate.

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The company continues to use specialist equipment capable of drilling rigs below 4,500m from other manufacturers.

Caspian Sunrise said in a statement: “The largest of the rigs to be acquired is a 350t rig, with the capacity to drill to a depth of up to 5,000m.

“The two further drilling rigs are 225t rigs, each being able to drill to depths of up to 4,000m. The fourth is a workover rig of 80t, with a capacity to drill up to 1,500m and perform general workover tasks to a depth of 2,500m is to be acquired.”

The company’s new Caspian Sunrise Services division will lease the purchased equipment.

Commenting on the purchase, Caspian Sunrise executive chairman Clive Carver said: “This marks another natural step in the company’s progression as a full-fledged oil producer.”