Caspian Sunrise plc Operational & Corporate Update (3983D)
31 January 2018 - 6:00PM
UK Regulatory
TIDMCASP
RNS Number : 3983D
Caspian Sunrise plc
31 January 2018
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
Operational update, potential acquisition & board
changes
Operational update
The cold weather experienced in the second half of December
2017, has for the most part continued into January 2018. In these
conditions complex activities are not either possible or not
advisable to attempt.
Accordingly, much of the work planned at our deep wells,
including the work to allow the resumption of the 90-day flow test
at Deep Well A5, has not yet been undertaken. Once conditions
improve the work will resume and we will update the market with
progress.
3ABest
Caspian Sunrise is pleased to announce its intention to acquire
100% of the shares of 3ABest, that owns a 1,347 sq km Contract Area
located close to the Caspian port city of Aktau in the Mangystau
Province of Kazakhstan.
The site located and is adjacent to and runs under the
commercially successful Dunga field, which was discovered in 1966
and developed by Maersk Oil.
Based on an assessment of the geology Caspian Sunrise's
technical team believe some of the geological characteristic of the
Dunga Contract Area are also present at 3ABest, additionally they
believe the area 2,500 meters and below the Dunga Contract area,
which forms part of the 3ABest Contract Area, also indicates the
likely presence of oil.
490 sq km of 3D seismic has been shot. 1,327 linear km of 2D has
been digitised and reprocessed.
Two wells have been drilled on the Contract Area in recent
years, both encountering water and signs of oil & gas, although
neither was commercially successful.
Caspian Sunrise would, by completing the acquisition of 3ABest,
become responsible for the outstanding work programme commitment
represented by the drilling of one well to a depth of 3,000 meters
at an estimated cost of up to $2 million.
The indicated purchase price is $24 million would be satisfied
by the issue of approximately 148 million new Caspian Shares at the
proposed price of 12p per share.
3ABest is owned by members of the existing concert party,
including the CompanyÕs CEO Kuat Oraziman and the CFO Kairat
Satylganov. The purchase of 3ABest is subject to further due
diligence, the entering into of a definitive binding agreement,
compliance with the AIM Rules for related party transactions, the
UK Takeover Code and the approval of the CompanyÕs Independent
directors and shareholders. There can therefore be no certainty any
transaction will be completed.
Further details of the proposed acquisition will be released in
due course.
Board changes
The Company announces that it has been informed by Mr Kairat
Satylganov, CFO, of his wish to step down from the Caspian Sunrise
board at the end of February 2018, to allow him more time to pursue
other of his business interests.
The Company is pleased to put on notice its appreciation of the
work of Mr Satylganov, who joined the board in 2013 following his
provision of a $40 million equity facility to the Company.
Clive Carver FCA, Executive Chairman, will once again assume the
duties of CFO in addition to being executive chairman.
Oil Capital
Clive Carver will be presenting at the 1 February 2018 Oil
Capital event in London.
Ends
Caspian Sunrise PLC
Clive Carver
Executive Chairman +7 727 375 0202
WH Ireland, Nominated Adviser
& Broker
James Joyce
Jessica Cave
James Sinclair-Ford +44 (0) 207 220 1666
Yellow Jersey PR
Tim Thompson
Henry Wilkinson +44 (0) 203 735 8825
Qualified Person
Mr. NurlybekOspanov, Caspian Sunrise PLC's Chief Geologist /
Technical Director who is a member of the Society of Petroleum
Engineers ("SPE"), has reviewed and approved the technical
disclosures in this announcement.
This announcement has been posted to:
www.caspiansunrise.com/investors
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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