REG - Caspian Sunrise plc - Corporate Update

Caspian SunriseAnnouncement

Thu 07:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250501:nRSA0105Ha&default-theme=true

RNS Number : 0105H  Caspian Sunrise plc  01 May 2025

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.

 

 

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

Update regarding the Block 8 acquisition and the BNG shallow structures
disposal

 

Introduction

The Board of Caspian Sunrise is pleased to update the market with progress of
the acquisition of the Block 8 Contract Area and the disposal of the MJF and
South Yelemes shallow structures on the BNG Contract Area.

 

Block 8

The Block 8 Contract Area is located approximately 160 km from the Group's
flagship BNG Contract Area and covers 2,823 sq. km with three identified
structures.

 

In September 2023 the independent directors as advised by the company's then
nominated adviser WH Ireland, exercised the option to acquire EPC Munai LLP,
the Kazakh corporate entity that held three licences on the Block 8 Contract
Area, for a cash consideration of $100 plus a $5 per barrel royalty from oil
produced from the Block 8 Contract Area when under the Group's ownership, up
to a maximum amount of $60 million (the "Acquisition").

 

Licence renewals

A condition of the Acquisition was the renewal of the three principal licences
on the Block 8 Contract Area, namely the licences for the Sholkara, Akkaduk
and Toresay structures.

 

The Sholkara licence has been renewed. Disappointingly, the licence for the
Akkaduk structure has yet to be renewed despite repeated court hearings.
Licence renewals involve more than one ministry and the time the first
ministry took in processing its approval for the Akkaduk licence resulted in
the second ministry deeming the application to be out of time.

 

While the courts have agreed this is essentially a matter between the two
ministries they have yet to order the respective ministries to renew the
Akkaduk licence.

 

As previously announced the Company is no longer interested in the Toresay
licence.

 

Moving towards completion

The Company has decided to move forward with the completion of the Block 8
Contract Area based solely on the Sholkara licence while continuing to work
through the courts to renew the Akkaduk licence.

 

Accordingly, the consents of the relevant Kazakh and UAE regulatory
authorities will now be sought for the required change of control. In the
meantime the current owner is free to resume work at the Sholkara structure,
on which wells have been drilled to depths of 4,203 meters and 3,449 meters.

 

Sale of the MJF & South Yelemes structures

In September 2024 Caspian Sunrise shareholders approved the sale of the BNG
Contract Area's shallow structures for a headline cash consideration of $88
million the ("Disposal").

 

Further to the announcement of 1 April 2025 the Board is pleased to confirm
that although the previously extended longstop date under the Sale &
Purchase Agreement has passed the parties continue to work towards the
completion of the Disposal as soon as practical, noting that the principal
outstanding issues are the required regulatory consents.

 

Further announcements will be made in due course.

 

 

 

Contacts

 

 Zeus            +44 (0) 203 829 5000

  James Joyce

   James Bavister

   Andrew de Andrade

 

This announcement has been posted to:

www.caspiansunrise.com/investors (http://www.caspiansunrise.com/investors)

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Clive Carver, Chairman of the Company.

 

This announcement has been posted to:

www.caspiansunrise.com/investors (http://www.caspiansunrise.com/investors)

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGLGDUXXGDGUB