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")
West Shalva
update
Introduction
Further to the RNS dated 8 April
2024, the Board of Caspian Sunrise is pleased to provide the
following update in respect of the acquisition of the West Shalva
Contract Area.
Background
The acquisition of CS Energy LLP,
the Kazakh entity which holds the licence for the West Shalva
Contract Area (the "Acquisition"), was approved by independent
Caspian Sunrise shareholders on 25 April 2024. Completion of
the Acquisition was then subject inter alia to the receipt of a number
of key Kazakh regulatory approvals.
On 5 November 2024 we announced that
the change of control consent required from the Ministry of Energy
had been granted by the Kazakh authorities.
We are pleased today to announce
that the consent required under the Kazakh Anti-Monopoly
legislation has now also been received. This was the final
substantive Kazakh approval required and allows work to commence on
the West Shalva Contract Area.
We are now proceeding with the
re-registration of CS Energy LLP, which is expected to take up to a
further two months to finalise and following which we could
formally complete the acquisition and issue the 99,206,349 Ordinary Shares ("Consideration Shares"), due under
the first tranche of the consideration (see
below).
The
West Shalva Contract Area
The West Shalva contract area is
rectangular in shape and extends over approximately 25
km².
It is located in the oil producing
Zhetybay Steppe Area in the Mangyshlak region of Western Kazakhstan
approximately 90 km east of Actau and approximately 20 km north
from the Zhetybay field, where an oil processing plant is located
and oil enters the Actau / Atyrau main pipeline.
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.
The West Shalva prospect is
partially located in Block XXXVII-12, but straddles the boundary
with adjacent blocks. The source rock for the West Shalva prospect
is considered to be Triassic marine shale as is understood to be
the case in the nearby Shalva and Zhalganoy fields.
The West Shalva prospect has
potential reservoirs of Jurassic and Triassic age. The Jurassic -
IX and Jurassic - XI and Triassic reservoirs are oil bearing in the
nearby Shalva field and oil has been reported (but not tested) from
core in the Triassic reservoir in the WSH-4 well.
Based on interpretation of the
available information the main reservoir targets are Jurassic IX
and Jurassic -XI reservoirs, with secondary targets in the
Triassic.
Development to date
The West Shalva Contract Area was
first identified as a potential oil producing location in the mid
1970's. In 1977 and based on 2D seismic data, Well no. 4 (Wsh-4)
was drilled to the north and outside the structural closure of the
West Shalva prospect to a depth of 3,500 meters with a prime
potential oil bearing interval detected at a depth of 1,033 meters
in the lower Triassic.
In 2008 a 3D seismic survey was
undertaken on the contract area, which identified the West Shalva
structure. In June 2022 oil was detected spilling to the
surface.
Licence and current work programme
The West Shalva Contract Area
exploration licence was renewed in 2023 for a six year period. The
current work programme commitment is for one well to a depth of
2,660 meters targeting at least two intervals in the Triassic at an
estimated cost of US$3 million and for which the required 3D
seismic information is readily available.
Development plans at the West Shalva Contract
Area
Now that the substantive Kazakh
regulatory approvals have been received work on the West Shalva
Contract Area may begin.
In order to assess the potential of
the West Shalva Contract Area, the Company is preparing to drill an
initial exploratory well in H1 2025 with a Total Depth of 2,660
meters from which, if successful, production is expected to
start in H2 2025. This well would fulfil the existing work
programme obligations under the current licence.
A G40 rig previously in use at the
BNG Contract Area has been identified for the work and is being
transported to the West Shalva Contract area.
Acquisition terms
Altynbek Bolatzhan, who is a member
of the Concert Party (see below) is the sole vendor of CS Energy
LLP ("Vendor").
The acquisition terms approved by
independent Caspian Sunrise shareholders involves the issue of up
to 198,412,698 shares partially dependent on the success of
drilling at the West Shalva Contract Area and a potential
additional cash sum of $5 million, as follows:
·
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 following completion of the
Acquisition
The Company currently has
2,254,978,483 shares in issue. The existing concert party currently
hold 1,091,189,529 shares representing 48.39% of
the shares currently in issue.
The CS Energy LLP vendor is
Altynbek Bolatzhan, who is a member of the Concert Party, and
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.
Other matters
While we have had little to announce
in recent months as we progressed the various corporate
transactions underway, we expect in the coming weeks to be able to
update shareholders on a range of developments, including but not
limited to the previously announced proposed $88 million disposal
of the MJF / South Yelemes structures on the BNG Contract Area and
the acquisition of the Block 8 Contract Area.
Comment
Clive Carver, Chairman said
"We are pleased to have cleared the final substantive
regulatory hurdle in the acquisition of the West Shalva Contract
Area.
Drilling the first well is set to commence soon and we look
forward to updating shareholders with the outcome in due
course"
Contacts:
|
Zeus
James Joyce
|
+44 (0) 203 829 5000
|
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.
This announcement has been posted to:
www.caspiansunrise.com/investors
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
