REG - Caspian Sunrise plc - Update on acquisition of West Shalva Contract Area

Caspian SunriseAnnouncement

05/11/2024 07:00

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RNS Number : 8877K  Caspian Sunrise plc  05 November 2024

 

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" and together with its subsidiaries, the
"Group")

 

Update on the acquisition of the West Shalva Contract Area

 

Introduction

Further to the RNS dated 8 April 2024, the board of Caspian Sunrise (the
"Board") is pleased to announce that the change of control consent required
for the completion of the acquisition of CS Energy LLP, the Kazakh registered
company which holds the licence for the West Shalva contract area (the
"Acquisition") has been granted by the Kazakh authorities.

 

Accordingly, the Company is moving ahead to complete the Acquisition on the
terms previously announced and summarised below.

 

Background

The West Shalva contract area extends over 24.89km(2) and is located 20km
north of the Zhetybai oil field and 6km north of the Shalva oil discovery
("West Shalva Contract Area").

 

The local infrastructure includes a railway station, paved roads, electricity,
water supply, and a mini refinery all within 20km of the West Shalva contract
area.

 

The West Shalva structure was identified in Soviet times by 2D seismic data.
Subsequently, 3D seismic data was acquired which identified West Shalva as a
faulted anticline. At that time the adjacent Shalva structure was drilled and
found oil from Jurassic sandstones.

 

In order to assess the potential of the West Shalva Contract Area, the Company
is preparing to drill an initial exploratory well in Q1 2025 with a Total
Depth of 2,600 meters from which, if successful, production  is expected to
start in Q2 2025. This well would fulfil the existing work programme
obligations under the current licence.

 

The Directors believe that drilling at West Shalva Contract Area will be far
less challenging than at either BNG or Block 8 as at West Shalva wells will be
drilled to shallower depths and without the extreme temperatures and pressures
encountered at the deep structures at BNG and Block 8. The Directors
therefore believe acquiring the West Shalva Contract Area adds a lower risk
asset to the Group's portfolio.

 

Acquisition terms

At a general meeting of the Company on 26 April 2024, independent Caspian
Sunrise shareholders approved the following acquisition terms:

 

·    On Completion 99,206,349 new ordinary shares will be issued to the
vendor at 4p per share.

·    On first oil from the West Shalva Contract Area a further 99,206,349
new ordinary shares would be issued to the vendor at 4p per share

·    Additionally, the first $5 million revenues from oil sales from the
West Shalva Contract Area under the Group's ownership would be paid to the
vendor.

 

Concert Party Shareholdings

The Company currently has 2,254,978,483 shares in issue, with the existing
concert party ("Concert Party") holding 1,091,189,529  shares representing
48.39% of the shares currently in issue.

 

The CS Energy LLP vendor is Altynbek Bolatzhan, a member of the Concert Party,
who currently holds 26,851,612 shares representing 1.19% of the shares
currently in issue.

 

On Completion his shareholding would increase to 126,057,961 shares
representing 5.35% of the shares then in issue and on first oil from the West
Shalva Contract Area his shareholding would further increase to 225,264,310
shares representing 9.18% of the shares then in issue.

 

On Completion the Concert Party's shareholding would increase to 1,190,395,878
shares representing 50.57% of the shares then in issue and on first oil from
the West Shalva Contract Area under the Group's ownership would further
increase to 1,289,602,227 shares representing 52.56% of the shares then in
issue.

 

Further announcements regarding formal completion of the Acquisition and the
issue of the consideration shares will be made in due course.

 

Comment

 

Clive Carver, Chairman said

 

"West Shalva will be a welcome addition to the Group's assets and should allow
the continuity of production following the proposed sale of the producing
shallow MJF and South Yelemes structures on the BNG Contract Area."

 

Contacts:

 

 Zeus            +44 (0) 203 829 5000

  James Joyce

 James Bavister

 Andrew de Andrade

 

Qualified person

 

Mr. Assylbek Umbetov, 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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