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
James Joyce
|
+44 (0) 203 829 5000
|
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