REG - Caspian Sunrise plc - Caspian Explorer contract signed & Dividend update

Caspian SunriseAnnouncement

07/03/2023 07:00

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RNS Number : 0620S  Caspian Sunrise plc  07 March 2023

 

Caspian Sunrise PLC

 

("Caspian Sunrise", or the "Company")

 

Caspian Explorer contract signed & Dividend update

 

Caspian Explorer

The Board is pleased to announce that the contract chartering the Caspian
Explorer has been signed.

 

Background

The Caspian Explorer is the Group's bespoke drilling vessel capable of
drilling to depths of 6,000 meters from shallow water and is believed to be
the only drilling vessel of its type currently operating in the shallow
northern Caspian Sea, with the following operational characteristics.

 

·      operates principally between May and November as the Northern
Caspian Sea is subject to winter ice

·      operates in depths between 2.5 meters and 7.5 meters

·      can drill to depths of 6,000 meters

·      typically has a crew to operate the drilling vessel of 20

·      has accommodation for approximately 100

 

The charter

The well is scheduled to be drilled in the summer of 2024 and is to be drilled
to a planned depth of 2,500 meters. It will be drilled for the Isatay
Operating Company LLP ("IOC"),a Kazakh registered explorer, in which Italy's
ENI is a leading participant. The work is expected to take at least two
months.

 

The total amount to be paid under the contract will depend principally on the
number of drilling days. Based on the Company's expectations the overall
impact is expected to result in net income of approximately $15 million,
spread over the life of the contract.

 

If the well is successful the contract provides for a second well to be
drilled on broadly the same terms as the first well.

 

Other charters

We continue to talk with potential hirers in respect of other charters for the
Caspian Explorer.

 

Dividends

The Company has now declared four monthly dividends each of £1 million,
demonstrating the Company's clear commitment to make and maintain dividend
payments.

 

We are now moving to quarterly rather than monthly dividend payments. This
change is related to the practical considerations of making dividend
declarations and payments and is not intended as a signal of a change in the
overall dividend pay-out rate. It will also bring us closer into line with
other dividend paying companies and allow the better management of significant
receipts and payments, which do not always follow a regular monthly pattern.

 

The next dividend announcement therefore is expected to be made with the
publication of the 2022 audited accounts in May 2023, with payment expected in
June 2023. For the avoidance of doubt the dividend declared on 20 February
2023 remains due to be paid on 23 March 2023.

 

 

Clive Carver, Chairman said

 

"We are naturally delighted to have signed the first major drilling contract
for the Caspian Explorer.

 

This is a significant separate source of funding for the Group and
demonstrates the potential value of this unique asset.

 

The funds generated are planned to be used to fund the Group's further
development."

 

 

Caspian Sunrise PLC

 

Clive Carver,
Chairman
+7 727 375 0202

 

WH Ireland, Nominated Adviser & Broker

 

James
Joyce
+44 (0) 207 220 1666

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 (http://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.

 

 

 

 

 

 

 

 

 

 

 

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