Business
Proposed Sale of the BNG shallow structures
Proposed Sale of the BNG shallow structures.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n\n14 May 2024\n \nCaspian Sunrise PLC\n \n(\"Caspian Sunrise\", the \"Group\" or the \"Company\")\n \nProposed Sale of the BNG shallow structures for $83 million\n \n \nIntroduction\nThe Board of Caspian Sunrise is pleased to announce it has entered into an agreement to grant exclusivity to Absolute Resources LLP (\"Absolute Resources\") a Kazakh registered company, in connection with the proposed conditional sale of the MJF and South Yelemes structures at the BNG Contract Area for a consideration of $83 million (\"Proposed Disposal\").\n \nThe exclusivity period extends to 8 August 2024. Caspian Sunrise and Absolute Resources intend to move quickly to a conditional sale and purchase agreement (\"SPA\") incorporating the key commercial principles set out in the exclusivity agreement, which would be subject to regulatory and shareholder consent. Until a binding agreement has been entered into and its conditions been met there can be no certainty a sale will complete.\n \nUnder the proposed terms set out in the exclusivity agreement, the Group would continue to hold the licences for what the Board considers to be the much more valuable deep structures at the BNG Contract Area.\n \nCommercial rationale\nThe Board believes that the Group has a competitive advantage in the identification and acquisition of new projects in Kazakhstan, which it does not necessarily have to the same degree in the day to day operation of maturing assets.\n \nAlso, with production expected from both Block 8 and West Shalva later this year, the Board believes that now is a good time to consider offers on the shallow structures at the BNG Contract Area.\n \nAccordingly, in the opinion of the Board, the funds released from the sale of the MJF and South Yelemes structures could be better utilised elsewhere to enhance longer term shareholder value.\n \nBackground\nCaspian Sunrise owns 99% of BNG Ltd LLP, the Kazakh entity which holds all the licences issued to develop both the shallow and deep structures at the BNG Contract Area. BNG Ltd LLP has granted Absolute Resources an exclusivity period up to 8 August 2024 to conclude its due diligence in connection with its proposed acquisition of a new corporate entity which would hold the licences for the shallow MJF and South Yelemes structures on the BNG Cont...