REG - Caspian Sunrise plc - Re-issue of BNG Contract Area licences

Caspian SunriseAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251230:nRSd1187Na&default-theme=true

RNS Number : 1187N  Caspian Sunrise plc  30 December 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 "Group")

 

Re-issue of BNG Contract Area licences following significant tax concessions

 

Introduction

The Board of Caspian Sunrise is pleased to announce significant tax
concessions at its flagship BNG Contract Area, necessitating the re-issue of
the licences at the Airshagyl and Yelemes Deep structures.

 

Tax concessions

The Kazakh Ministry of Energy has confirmed significant tax concessions, to
assist in the development of the BNG Contract Area's deep structures.
Specifically, the Ministry of Energy has confirmed that Alternative Subsoil
Use Tax will apply to production from the BNG Contract Area in lieu of
Historic Cost, mineral extraction tax and excess profits tax. Furthermore, a
temporary exemption from export customs duties on crude oil has been granted.

 

Re-issue of BNG Contract Area licences

The tax concessions noted above require new licences to be issued.
Accordingly, the Ministry for Energy has issued new licences for both the
Airshagyl and Yelemes Deep structures on the following bases.

 

Airshagyl

A three-year appraisal licence has been issued during which the Group must
submit credible plans to develop the Airshagyl structure and during which
additions to state confirmed reserves on the basis of additional drilling is
permitted.

 

A requirement under the 25-year full production licence expected to be issued
during the initial three-year period is for a minimum of two further deep
wells on the Airshagyl structure to be drilled after the full production
licence is issued.

 

Yelemes Deep

A two-year appraisal licence has been issued during which additions to state
confirmed reserves on the basis of further drilling is permitted.

 

A requirement during the initial two year period to be eligible for the award
of a full 25-year production licence is that three further deep wells each
with an expected maximum depth of 5,000 meters are drilled.

 

 

Oil sales before the full production licences are issued

During the initial periods of the new Airshagyl and Yelemes Deep licences all
production is to be sold on the domestic market and at domestic prices.

 

BNG Contract Area

The BNG Contract Area is only 40 km from the world class Tengiz field and the
Board believes the geology there and also at the nearby world class offshore
Kashagan field extends to the BNG Contract Area and beyond that to the Block 8
Contract Area, which is some 160 km further away from the BNG Contract Area
and which the Group is in the final stages of acquiring.

 

The Group holds a 99% interest in the BNG Contract Area. Since 2008 more than
$120 million has been spent at the BNG Contract Area, principally to meet the
deep structures work programme commitments to be eligible to apply for the
25-year production licences referred to above.

 

Between 2019 and mid 2025 more than 4.5 million barrels of oil were produced
from the shallow MJF and South Yelemes structures, which in July 2025 were
sold for a headline cash consideration of $88 million.

 

Comment

Clive Carver, Chairman said

 

"The tax concessions are major steps forward for the Group and acknowledge the
importance and potential of the BNG Contract Area, which the Board continues
to believe is a potentially transformational asset."

 

 

 

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)

 

Qualified Person

Mr. Sunjin Chang, a member of the Society of Petroleum Engineers, has
reviewed and approved the technical disclosures in these financial statements.

 

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  MSCFZMFZVGNGKZG



            Copyright 2019 Regulatory News Service, all rights reserved