Caspian Sunrise Plc · LSE:CASP
Caspian Sunrise — H1 2023 Earnings Presentation
24 slides from Caspian Sunrise's earnings presentation, October 2023
Slide 1: Caspian Sunrise Plc 2023 Interim Results
CASPIAN SUNRISE PLC 2023 Interim results October 2023 INVESTOR PRESENTATION Q4 2023
Slide 2: Important Information
IMPORTANT INFORMATION THIS PRESENTATION IS NOT, AND DOES NOT CONSTITUTE, AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, COMPANY SECURITIES BY ANY PERSON. NO SECURITIES OF THE COMPANY HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS,
Slide 3: Investment Proposition Overview
INVESTMENT PROPOSITION OVERVIEW ¡ Management believe the geological structures present at Kashagan and Tengiz may extend to BNG and Block 8 ¡ Commercial deep wells at either BNG or Block 8 would transform the Group’s valuation ¡ The current valuation is more than covered by existing production / ass
Slide 4: Oil & Gas Assets
OIL & GAS ASSETS BNG (99%) Shallow structures ¡ 1,561sq km Contract Area located close to Tengiz ¡ MJF / South Yelemes ¡ Acquired in 2008 ¡ 9 wells – 7 operational ¡ 2,000 – 2,500 meters @ typically $2 million each ¡ Self operated since 2011 Deep structures ¡ More than $100 million spent since 2008
Slide 5: Block 8
BLOCK 8 ACQUISITION TERMS CONTRACT AREA DETAILS ¡ Option to acquire ¡ 2,823 sq km Contract Area 160 km from BNG ¡ Related party transaction ¡ 3D seismic data acquired over 456 sq km ¡ Maximum price $60 million for 100% ¡ Three deep structures ¡ Payable in cash from future production at the ¡ Two dee
Slide 6: 3A-Best
3A-BEST CHARACTERISTICS CURRENT POSITION ¡ 1,347 sq meter Contract Area located near the ¡ Working with the authorities to renew the port of Actau licence ¡ Surrounds and goes under Total’s Dunga field ¡ Total have now sold Dunga, which may make a which produces c. 15,000 bopd corporate sale easier
Slide 7: INVESTOR PRESENTATION Q4 2023
INVESTOR PRESENTATION Q4 2023 7
Slide 8: Routes to Market: Before Sanctions
ROUTES TO MARKET: BEFORE SANCTIONS INTERNATIONAL DOMESTIC ¡ Sold to international oil traders ¡ Sold to local oil traders ¡ Delivered to the local treatment works ¡ Delivered to local treatment works ¡ Shipped monthly to north Russian ports ¡ Shipped monthly ¡ Loaded onto large tankers ¡ Ultimate de
Slide 9: Illustrative $ per Barrel
ILLUSTRATIVE $ PER BARREL International (Brent) Domestic Mini refinery $ per barrel $ per barrel $ per barrel Headline price 93 32 34 “Urals” discount (15) (0) (0) Adjusted headline price 78 32 34 Transportation and processing (9) (3) (0) 69 29 34 Tax (35) (1) (1) Net price 34 28 33 INVESTOR PRESENT
Slide 10: Oil Trading
OIL TRADING PERMITTED FROM 1 JANUARY 2023 ¡ Producers able to sell direct ¡ New subsidiary formed and registered ¡ Over time could also sell other producers’ oil ¡ Cautious start as there is a funding requirement ¡ Estimated 6-month revenues $3.8 million ¡ Estimated 6-month gross profit $3.1 million
Slide 11: Drilling Services
DRILLING SERVICES CTS CASPIAN EXPLORER ¡ Onshore drilling ¡ Built by a consortium of leading Korean companies in 2010 for $200 million. ¡ 200 employee staff Replacement cost >$300 million and would ¡ 4 rigs take several years to be operational ¡ 17 shallow wells at BNG ¡ Can drill to depths of 6,000
Slide 12: Caspian Explorer
CASPIAN EXPLORER SHALLOW WATER DRILLING VESSEL ¡ Full price contract in place for 2024 ¡ Expected profit $15 million ¡ Significant interest in partial or outright purchase ¡ Relatively low costs when not in use INVESTOR PRESENTATION Q4 2023 12
Slide 13: Interim Results for the 6 Months Ended 30 June 2023
INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2023 OPERATIONAL HIGHLIGHTS ¡ Production decreased by 14% to 354,360 barrels @ 1,941 bopd (2022: 414,048 barrels @ 2,268 bopd) ¡ Average price achieved fell 43% to $34 (2022: achieved average $62) ¡ Deep Well 802 drilled to a Total Depth of 4,200 meters
Slide 14: Segmental Analysis (Unaudited)
SEGMENTAL ANALYSIS (UNAUDITED) 6 months ended 30 June 2023 30 June 2022 Revenue Cost of sales Gross profit Revenue Cost of sales Gross profit $’000 $’000 $’000 $’000 $’000 $’000 Oil production 12,463 2,666 9,797 24,385 3,962 20,423 Oil trading 3,798 671 3,127 nil nil nil Drilling services 1,025 1,56
Slide 15: Profit and Loss (Unaudited)
PROFIT AND LOSS (UNAUDITED) Six months ended 30 June 2023 2022 Change $’000 $’000 % Revenue 17,286 25,591 -32.5 Cost of sales (4,903) (6,705) -26.9 Gross profit 12,383 18,886 -34.4 Selling expenses (2,826) (6,906) -59.1 Administrative costs (1,449) (1,662) -12.8 Operating profit 8,108 10,318 -21.4 F
Slide 16: Balance Sheet (Unaudited)
BALANCE SHEET (UNAUDITED) Unaudited as at 30 June 2023 31 December 2022 30 June 2022 Change from year end $’000 $’000 $’000 $’000 Assets Non-current 121,124 107,786 100,981 13,338 Current - Cash 475 3,682 5,044 -3,207 Current - Other 9,125 5,683 6,509 3,442 Total non-current 9,600 9,365 11,553 235 T
Slide 17: Cashflows (Unaudited)
CASHFLOWS (UNAUDITED) 6 Month period ending 30 June 2023 2022 Change $’000 $’000 $’000 Operations Cash received from customers 13,764 24,328 -10,564 Payments to suppliers and staff (4,751) (14,222) 9,471 Cash used by operating activities 9,013 10,106 -1,093 Investing / financing Additions to unprove
Slide 18: Summary
SUMMARY INVESTMENT CASE CONTACT DETAILS ¡ Current valuation supported by shallow clive.carver@caspiansunrise.com production kuat.oraziman@caspiansunrise.com ¡ Potential for huge uplift in the event of Registered Office ¡ End of sanctions / new export routes 5 New Street Square, ¡ Commercial deep wel
Slide 19: Appendices
APPENDICIES INVESTOR PRESENTATION Q4 2023 1919
Slide 20: Shareholders
SHAREHOLDERS BY SIZE STATISTICS ¡ Oraziman family 48% ¡ 2,250,501,560 shares in issue ¡ Dae Han New Pharm 10% ¡ Approximately 15 million options outstanding (0.67% of the issued total) ¡ Other Kazakh individuals 7% ¡ AIM listed since 2007 ¡ Al Marri family 5% ¡ Ticker: CASP.L ¡ Midiel Engineering AG
Slide 21: Board
BOARD EXECUTIVE NON-EXECUTIVE Kuat Oraziman – CEO Clive Carver FCA & FCT - Chairman ¡ Trained geologist with 27 years oil and gas ¡ Experience public company chairman & CFO experience in Kazakhstan. Aibek Oraziman – Largest shareholder (46%) Seokwoo Shin – COO ¡ More than 12 years oil & gas experien
Slide 22: Kazakhstan
KAZAKHSTAN LICENCES TYPES TAXATION ¡ Exploration: Typically, two years duration and ¡ Five principal taxes with each having its own common for several renewals before moving to basis of calculation an appraisal licence. ¡ Corporate Income Tax @ 20% taxable income ¡ Appraisal: Next step if the projec
Slide 23: BNG Reserves & Licences
BNG RESERVES & LICENCES RESERVES LICENCES BNG Shallow structures MJF ¡ P1 14.3 mmbls ¡ Export licence to 2043 ¡ P2 25.5 mmbls South Yelemes BNG Deep structures ¡ Export licence to 2046 ¡ Nil to date Airshagyl & Yelemes Deep (combined) 3A Best ¡ Appraisal licence to 2022 ¡ Nil to date 3A-Best – worki
Slide 24: M&A Experience / Activity
173.58 AA M&A EXPERIENCE / ACTIVITY ACQUISITIONS DISPOSALS ¡ BNG / Galaz ¡ Galaz – Sold for $100 million ¡ 3A-Best ¡ 3A-Best ? ¡ Caspian Explorer ¡ Caspian Explorer ? ¡ Equipment ¡ Rigs ¡ Vehicles ¡ Drilling equipment INVESTOR PRESENTATION Q4 2023 24