Caspian Sunrise plc – CASP – Operational update & shareholder questions

Caspian Sunrise plc – CASP – Operational update & shareholder questions

Introduction

The Board is pleased to update the market with news of progress at its flagship BNG Contract Area and of the acquisition of the Caspian Explorer.

The Board is also pleased to announce that responses to shareholder questions received following the publication of the Group’s interim results will later today be uploaded to the Group’s website www.caspiansunrise.com/investors

Shallow Wells

MJF structure

For the majority of September 2020, average production volumes at the MJF structure were approximately 1,620 bopd although due principally to planned maintenance work at the loading station the average for the month was approximately 1,340 bopd.

The workover at Well 141 has been completed and the well is expected to resume commercial  production in the next few days. Well 144 is the next to be worked over.

At New Well 151 work is underway to install a pump to increase the productivity of the well, which is expected to increase production to approximately 300 bopd. With Wells 151, 141 & 144 contributing the expectation is that MJF productive capacity would increase to between 2,200 – 2,500 bopd.

Our appeal against the historic costs assessed on the MJF structure, due to be repaid quarterly over a 10 year period, has yet to be heard following Covid-19 related court delays. The basis of the appeal is that the $32 million assessment for the whole BNG Contract Area has been allocated entirely against the MJF structure. As the MJF structure represents only 1% of the total BNG surface area, we are advised a pro rata charge is more appropriate. Until the court agrees we are required to meet the quarterly payments for the full assessment.

South Yelemes Structure

The Kazakh regulatory authorities continue to evaluate historic reserve information as part of the process of vetting our application to move the structure onto an export licence, under which a portion of the oil produced would be sold by reference to international rather than domestic prices.

On the award of the licence production from the South Yelemes structure is expected to re-commence at a rate of 300 bopd.

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