General Meeting & BNG and Caspian Explorer updates

Caspian Sunrise plc

31 July 2023

 

Caspian Sunrise PLC

("Caspian Sunrise" or the "Company")

General Meeting statement & BNG and Caspian Explorer updates

Introduction

The Company is holding a General Meeting later this morning to consider the Financial Statements for the year ended 31 December 2022.

Responses to questions submitted from shareholders unable to attend the General Meeting have been posted to the company's website www.caspiansunrise.com/investors/shareholderquestions  

BNG update

MJF Shallow wells

Wells 141, 142 and 145 are currently not contributing to the current production of approximately 1,700 bopd.  Work at all three wells has been scheduled for later in the year to bring each of the wells back into production.

Deep Well 802

The plan at Deep Well 802 is to clear the drilling fluids blocking the well using coil tubing equipment and then to complete the well ready for testing.

The coil tubing work programme is underway and is planned to complete by end September 2023.

BNG work programme for the remainder of the year

In addition to the planned work at Deep Well 802, the Company plans following a work programme at the BNG Contract Area during the remainder of the year and as summarised below but set out more fully on the Company's website.

·    At Shallow Well 142 a workover is planned to start at the end of August 2023.

·    At Shallow Well 155 a new shallow well is planned to spud in mid-September 2023.

·    At Deep Well A5 a new side-track from a depth of approximately 4,500 meters is planned with work expected to start subject to rig availability in September 2023

·    At Deep Well A6 a workover to perforate a 6 meter interval at a depth of 4,300 meters is planned to commence in mid-August. This may however, be delayed to allow the shallow horizontal well planned to be drilled on the South Yelemes structure to be drilled first using the rig and crew currently intended for Deep Well A6.

·    A new deep well, Deep Well 803 is planned to spud in mid-October 2023.

·    At Deep Well A5 a 300 meter side-track is planned to commence in October 2023.

·    At Shallow Well 141 a new side-track is planned to commence in November 2023.

·    At Shallow Well 145 a decision on how to proceed will be taken based on the recommendation of international experts assessing the well

The timing of the work to continue drilling at Deep Well A7 depends on the results from the work to be carried out at Deep Well A5.

The above plans and in particular the timings are based on expected rig and crew availability and subject to cancelation and variation based on operational and commercial issues that may arise. 

The Company's expectation based on the above work programme is that production levels at the end of the year are significantly ahead of the current level.

BNG licence renewal

The existing appraisal licence for the two deep structures at BNG (Airshagyl and Yelemes Deep) will expire in 2024.  The Company intends to apply to renew the licences on a long term full production basis, under which international sales would be permitted.

The two shallow structures on the BNG Contract Area (MJF & South Yelemes) are already long term licences with international sales permitted.

Following a licence renewal for the deep structure on a full production basis the intention is to focus future drilling on production wells rather than exploration wells, as would be permitted under the new licence terms.

Caspian Explorer update

The Company has not received the payments due under the agreement to sell 50% for $22.5 million.  Accordingly, the Company is in discussions with alternative purchasers for the Caspian Explorer.  Further updates will be made in due course.

Contacts:

Caspian Sunrise PLC

Clive Carver, Chairman                                                                [phone]

WH Ireland, Nominated Adviser & Broker

James Joyce                                                                            [phone]

James Bavister

Andrew de Andrade

Qualified person

Mr. Assylbek Umbetov, a member Association of Petroleum Engineers, has reviewed and approved the technical disclosures in this announcement.

This announcement has been posted to:

www.caspiansunrise.com/investors

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

END