Business
Disposal of the BNG shallow MJF & South Yelemes
Disposal of the BNG shallow MJF & South Yelemes.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n\n \n \nThe 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.\n \n \nCaspian Sunrise PLC\n \n(\"Caspian Sunrise\" or the \"Company\" and together with its subsidiaries, the \"Group\")\n \nUpdate on the disposal of the BNG shallow MJF & South Yelemes structures\n \nand\n \nOperational Update\n \nIntroduction\nThe board of Caspian Sunrise (the \"Board\") is pleased to announce that BNG Ltd LLP (\"BNG\"), the Group's 99% subsidiary, which holds the BNG Contract Area licences, has entered into a conditional Sale & Purchase Agreement with Absolute Resources LLP (\"SPA\") to sell the shallow BNG MJF and South Yelemes structures for a headline cash consideration of US$88 million (the \"Disposal\").\n \nCaspian Sunrise will retain ownership of the BNG deep structures, Airshagyl and Yelemes Deep.\n \nBackground\nThe 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.\n \nThe 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.\n \nOn 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.\n \nOn 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.\n \nOn 3 September 2024 the Board announced that BNG Ltd LLP had entered into a conditional and bindi...