REG - Caspian Sunrise plc - Update on the disposal of MJF & South Yelemes

Caspian SunriseAnnouncement

31/10/2024 07:00

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RNS Number : 2852K  Caspian Sunrise plc  31 October 2024

 

 

Caspian Sunrise PLC

("Caspian Sunrise" or the "Company" and together with its subsidiaries, the
"Group")

Update on the disposal of the BNG shallow MJF & South Yelemes structures

 

Introduction

 

The board of Caspian Sunrise ( the "Board") announces that the parties
involved in the proposed $88 million sale of the Group's shallow MJF and South
Yelemes structures at the Group's flagship BNG asset ("Proposed Disposal") are
continuing work towards finalising the formal Sale & Purchase Agreement,
with a view to completing the Proposed Disposal before the end of the year.

 

Further announcements will be made in due course.

 

Background

 

The MJF structure is the principal shallow structure on the BNG Contract Area
and has accounted for the vast majority of the Group's oil production since it
first produced oil in 2016.

 

The South Yelemes structure was awarded its own export licence in 2021 but to
date has only produced from wells drilled in the Soviet era, as improved by
horizontal drilling.

 

On 14 May 2024 the Board announced the conditional disposal of the BNG shallow
MJF and South Yelemes structures, for a headline cash consideration of
approximately US$83 million. At that time the proposed purchaser Absolute
Resources LLP ("Absolute Resources"), was granted a 90 day exclusivity period
to conclude its due diligence.

 

On 18 July 2024 the Board announced that the proposed purchase price had by
negotiation increased to approximately US$88 million and that the exclusivity
period had been extended until 31 August 2024.

 

On 3 September 2024 the Board announced that BNG Ltd LLP had entered into a
conditional and binding term sheet with Absolute Resources under which initial
payments totalling US$14 million have subsequently been received.

 

At a General Meeting on 26 September 2024, and as required under the AIM
Rules, Caspian Sunrise shareholders approved the Proposed Disposal on the
terms set out above by a majority of 99.95%.

 

Contacts:

 

 Zeus            +44 (0) 203 829 5000

  James Joyce

   James Bavister

   Andrew de Andrade

 

 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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