REG - Caspian Sunrise plc - General update

Caspian SunriseAnnouncement

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RNS Number : 5837F  Caspian Sunrise plc  31 October 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

 

General update

 

 

Introduction

In anticipation in the next few weeks of the relisting of the Company's shares
upon the publication of the  audited accounts for the year ended 31 December
2024 and the unaudited interim accounts for the 6 months ended 30 June 2025,
the Board of Caspian Sunrise is pleased to provide the following operational
and corporate update covering the period from the suspension of trading in the
Group's shares at the end of June 2025.

 

MJF / South Yelemes disposal

Completion of the disposal of the MJF and South Yelemes structures at the BNG
Contract Area took place in July 2025 with the full $69 million due on
completion then received.

 

A further $13.8 million is payable by the purchaser in quarterly instalments
over the next 4 years to cover the Historic Costs liability at completion.
Additionally a further $5.1 million remains payable in 12 monthly instalments
commencing in Q1 2026.

 

Oil & gas operations

Following the disposal of the MJF and South Yelemes structures at the BNG
Contract Area the  Group is funded to continue development work at its three
oil & gas assets, which comprise

 

·    a 99% interest in the BNG deep structures Airshagyl and Yelemes Deep

·    a 100% interest in the West Shalva Contract Area

·    subject to completion of the remaining conditions precedent and
upon completion of the acquisition of EPC Munaily, a 99% interest in the Block
8 Contract Area's Sholkara structure

 

BNG Deep Structures

 

Airshagyl

In May 2025 the production licence at the Airshagyl structure was issued for
an initial three year term. This allowed operations to resume and provides the
opportunity in the initial three year period to add to the state certified
reserves, which are currently C1 26 mmbls.

 

To date four deep wells have been drilled on the Airshagyl structure of which
we believe wells A5, A6 and A7 are capable of commercial production.

 

Subject to rig availability, the first well to be re-worked in 2026 is planned
to be Deep Well A7, which has a planned Total Depth of 5,300 meters targeting
an interval at 4,000 meters but at which drilling was paused at a depth of
2,150 meters to allow other wells to be drilled in compliance with previous
work programme obligations.

 

Additionally, at Deep Well A5 a new sidetrack is planned and at Deep Well A6 a
chemical treatment is planned to bring the wells into commercial production.

 

Yelemes Deep

We cannot resume work at the Yelemes Deep structure until a new licence has
been issued. At that time we plan to continue work at Deep Well 803, which has
a planned Total Depth of 4,500 meters but encountered oil between depths of
3,360 and 3,420 meters.

 

Although no development work has been possible since the upgrade licence
application was submitted in Q4 2024 the oil pressure has increased with oil
of good quality seeping to the surface.

 

West Shalva

The West Shalva Contract Area was acquired in April 2025 for an initial $5
million consideration and with a maximum consideration of $15 million in the
event of successful oil production.

 

The Contract Area is approximately 600 kilometers further south than the BNG
and Block 8 Contract Areas and is expected to be easier to work than either.
 It is without previous drilling activity. However, at the adjacent Shalva
Contract Area, with which we believe there to be shared geology, there have
been reports of testing at the rate of approximately 200 bopd from the
Jurassic.

 

A well with a planned Total Depth of 3,000 meters with targets at depths of
2,300 and 2,600 meters was spudded in early October 2025. Drilling has reached
a depth of 827 meters without incident with casing set to a depth of 180
meters.

 

The well is expected to reach its Total Depth in December with testing planned
for January 2026.

 

Block 8

We are in the process of acquiring the Block 8 Contract Area, which is located
approximately 160 kilometers east of the BNG Contract Area and which we
believe shares much of the same geology.

 

The required consent from the Kazakh Ministry of Energy has been received with
completion now dependent on the approval of the Kazakh Antimonopoly Authority.

 

The acquisition is being completed on the basis of the Sholkara licence alone,
which was renewed in Q4 2024  and at which testing of deep wells P1 and P2
continues.

 

At Deep Well P1, which was drilled to a depth of 4,203 meters, oil has flowed
on a test basis at the rate of up to 270 bopd. However, a high water content
believed to be the result of issues with the cementing of the well has
resulted in a decision to drill a new sidetrack commencing in November.

 

At Deep Well P2, which was drilled to a depth of 3,449 meters oil has flowed
on a test basis at the rate of up to 846 bopd.

 

We continue to seek the addition of the Akkaduk structure to the Block 8
package. Two deep wells have been drilled on the Akkaduk structure but cannot
be tested until the licence there is renewed.

 

Oil trading

The 2024 audited accounts are expected to show a record performance for our
oil trading activities despite the already announced decrease in 2024 oil
production volumes in the run up to the sale of the MJF and South Yelemes
structures.

 

Inevitably with the sale of the MJF and South Yelemes structures oil trading
activities in the current year have been affected but are expected to continue
to contribute significantly to future group revenues as production volumes
build from the BNG deep structures, West Shalva and Block 8, once owned.

 

Caspian Explorer

The Caspian Explorer is a shallow water drilling platform capable of drilling
to depths of up to 6,000 meters.

 

In 2024 the Caspian Explorer completed its first drilling charter under the
Group's ownership for the Isatay Operating Company, a consortium led by
Italy's ENI.  The well was drilled without any notable issues and quicker
than expected. However, with ENI subsequently exiting its Kazakh operations we
do not now expect to drill the second option well and the Caspian Explorer has
not been chartered in 2025.

 

Discussions are at an advanced stage for up to three separate charters in
2026.

 

Minerals

Kazakhstan is one of the world's leading minerals and rare earth producers and
it has been a long standing ambition for the Group to participate fully in the
development of these natural resources which come without many of the issues
currently affecting oil production in Kazakhstan.

 

The Group is reviewing a number of potential mining acquisitions with further
announcements expected following the resumption in trading of the Group's
shares.

 

 

Comment, Clive Carver, Chairman, said

 

"After a prolonged period of relative operational inactivity caused
principally by regulatory delays and a shortage of funding the Group is once
again active across the full range of its activities."

 

 

Contacts:

 

 Zeus               +44 (0) 203 829 5000

 James Joyce

 James Bavister

 Andre de Andrade

 

 

This announcement has been posted to:

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

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

 

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)

 

 

 

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