REG - Caspian Sunrise plc - BNG Operational Merger / Baverstock Merger Update <Origin Href="QuoteRef">CASPC.L</Origin>

Caspian SunriseAnnouncement

08/05/2017 07:05

RNS Number : 3965E
Caspian Sunrise plc
08 May 2017
Caspian Sunrise PLC ("Caspian Sunrise" or the "Company")
formerly Roxi Petroleum Plc
BNG Operational Update
Update on the Baverstock merger
Introduction
Caspian Sunrise plc (formerly Roxi Petroleum plc) ("Caspian Sunrise"), the Central Asian oil and gas company, with a focus on Kazakhstan, is pleased to update the market with news of Shallow Well 808 and Deep Well A6 from its BNG Contract Area and of the Baverstock Merger.
Background
Caspian Sunrise has a 58.41% interest in the BNG Contract Area, which is located in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,702 square kilometres. The block has both shallow and deep structures of interest. Following completion of the Baverstock Merger The Company's interest in BNG will be 99%.
Potential New Structure
Well 808
As previously announced Caspian Sunrise has identified from the analysis of available seismic data a potential new structure ("New Structure"), which is being evaluated at an estimated cost of $2.5 million by well 808, a shallow well.
Well 808 has been drilled a total depth of 3,200 meters targeting Cretaceous, Jurassic and possibly Triassic horizons. 
Six horizon's were identified for further analysis. The lower ones at depths between 3038-3030 and 3014-3008 meters contained shows of oil films but tested water with gas and are not considered worth pursuing.
The remaining intervals between 2714 - 2716 meters ; 2646 - 2648 meters ; 2557 - 2559 meters; & 2356 - 2363 metersare planned for perforation and testing.
In the event the results of testing the remaining intervals at Well 808 indicate the presence of a significant quantity of oil a further two wells are planned for later in 2017.
Deep Well A6
Deep Well A6 is the third deep well drilled..
A gross interval of in excess of 100 meters was identified from mud and wire-line logs as being potentially hydrocarbon bearing. In January 2017, as previously announced, the lower 46 meters were poorly perforated although the limited recoveries tested with oil films, water and gas.
The top 60 meters of the 100-meter plus interval were subsequently successfully perforated using a different leading international contractor. To date limited recoveries from the well have been possible and the well is being prepared for a chemical wash to stimulate the flows.
Aggregate production
The aggregate production from the BNG shallow wells is c. 1,190 bopd, which under the terms of the current exploration and appraisal licence has to be sold at domestic prices, currently c. $16 per barrel.
Baverstock Merger update
On 24 March 2017 independent shareholders approved the merger between Roxi Petroleum and Baverstock GmbH ("Baverstock"), to form Caspian Sunrise. Under the terms of the merger 651,436,544 new Caspian Sunrise shares, representing 41.59% of the then enlarged share capital, will be issued fully paid to the Baverstock Quotaholders on completion.
Additionally, on 24 March 2017 independent shareholders also approved the capitalisation of the $10.1 million Vertom International NV ("Vertom") loan. This will result on completion in the issue of a further 80,804,200 new Caspian Sunrise shares to Vertom, a company controlled by Kuat Oraziman the Caspian Sunrise CEO.
As previously announced, the only outstanding material condition to closing both the merger and the capitalisation of the Vertom Loan is the receipt of the formal approval from the relevant Kazakh authorities. Based on enquiries to the agencies concerned the Company's management expects such approval should be received by the end of Q2 2017.
Ends
Comments:
"Both Wells 808 and A6 are at key stages of testing. We look forward to updating the market further when the outcome of the testing is known."
Caspian Sunrise plc +7 727 375 0202
Clive Carver
Executive Chairman
WH Ireland, Nominated Adviser & Broker  +44 (0) 207 220 1666
James Joyce
James Bavister
Abchurch +44 (0) 2017 398 7700 
Tim Thompson / George Robinson / Rebecca Clube
Qualified Person
Mr. Nurlybek Ospanov, Roxi's senior geologist who is a member of the Society of Petroleum Engineers ("SPE"), has reviewed and approved the technical disclosures in this announcement.
This announcement has been posted to: 
www.caspiansunrise.com/roxi/en/investors. 

This information is provided by RNS
The company news service from the London Stock Exchange
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