Operational Update, Potential Acquisition & Board Changes
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.
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 Company’s 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 Company’s 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.
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.
Clive Carver will be presenting at the 1 February 2018 Oil Capital event in London.