Business
Caspian Explorer contract signed & Dividend update
Caspian Explorer contract signed & Dividend update.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n \n \n \n \n \n \n Caspian Sunrise PLC\n \n \n \n \n \n \n \n \n \n (\"Caspian Sunrise\", or the \"Company\")\n \n \n \n \n \n \n \n \n \n Caspian Explorer contract signed & Dividend update\n \n \n \n \n \n \n \n \n \n Caspian Explorer\n \n \n \n The Board is pleased to announce that the contract chartering the Caspian Explorer has been signed.\n \n \n \n \n \n \n Background\n \n \n \n The Caspian Explorer is the Group's bespoke drilling vessel capable of drilling to depths of 6,000 meters from shallow water and is believed to be the only drilling vessel of its type currently operating in the shallow northern Caspian Sea, with the following operational characteristics.\n \n \n \n \n \n ·\n operates principally between May and November as the Northern Caspian Sea is subject to winter ice\n \n \n ·\n operates in depths between 2.5 meters and 7.5 meters\n \n \n ·\n can drill to depths of 6,000 meters\n \n \n ·\n typically has a crew to operate the drilling vessel of 20\n \n \n ·\n has accommodation for approximately 100\n \n \n \n \n \n \n The charter\n \n \n \n The well is scheduled to be drilled in the summer of 2024 and is to be drilled to a planned depth of 2,500 meters. It will be drilled for the Isatay Operating Company LLP (\"IOC\"),a Kazakh registered explorer, in which Italy's ENI is a leading participant. The work is expected to take at least two months.\n \n \n \n \n \n The total amount to be paid under the contract will depend principally on the number of drilling days. Based on the Company's expectations the overall impact is expected to result in net income of approximately $15 million, spread over the life of the contract.\n \n \n \n \n \n If the well is successful the contract provides for a second well to be drilled on broadly the same terms as the first well.\n \n \n \n \n \n \n Other charters\n \n \n \n We continue to talk with potential hirers in respect of other charters for the Caspian Explorer.\n \n \n \n \n \n \n Dividends\n \n \n \n The Company has now declared four monthly dividends each of £1 million, demonstrating the Company's clear commitment to make and maintain dividend payments.\n \n \n \n \n \n We are now moving to quarterly rather than monthly dividend payments. This change is related to the practical considera...