Caspian Sunrise PLC · LSE:CASP

Caspian Sunrise — Investor Presentation (May 2017)

23 slides from Caspian Sunrise's investor presentation, May 2017

  1. Slide 1: Caspian Sunrise PLC Investor Presentation

    Caspian Sunrise PLC Investor Presentation Clive Carver – Chairman www.caspiansunrise.com May 2017

  2. Slide 2: Disclaimer

    Disclaimer The information contained in these slides and this presentation is being supplied to you by Caspian Sunrise plc on behalf of itself and its subsidiaries (together “the Company”) solely for your information and may not be reproduced or redistributed in whole or in part to any other person.

  3. Slide 3: Overview

    Overview  AIM quoted oil and gas exploration and production focused on Kazakhstan  Principal asset BNG (99% working interest after merger completes)  US$93.4 million invested to date ($128 million across all Eragon assets)  4-5 discoveries – 2-3 shallow and 2 deep  Appraisal and estimation lice

  4. Slide 4: Kazakhstan

    Kazakhstan  Population 18.2 million  Area 2.7 billion sq km – 9th largest in world  Independent since 1991  GDP $218 billion. GDP per capita $10,504  GDP growth forecasts, 2016 1.2%  US$1 = 318 Tenge (US$1 = 150 Tenge before Feb 2014  Inflation 17% (2016) Kazakh daily oil production 2.00  Ke

  5. Slide 5: Strategy

    Strategy Short term Longer term  By the time of the BNG licence renewal in  Creation of financially successful oil & gas June 2018 to maximise the P1 and P2 exploration centered on the potentially reserves at BNG with the minimum world class BNG asset dilution to shareholders Facilitated by Facili

  6. Slide 6: BNG overview

    BNG overview  Ownership  Caspian Sunrise 99%, local 1%  Active from Soviet era – 2 previous blowouts  Previous partners  Canamens (Goldman Sachs/Sector)  KNOC  Area  Total 1,702 sq km  3D seismic 1,376 sq km acquired 2009-2010  Drilling  Shallow  Producing/testing wells 805, 806, 807, 14

  7. Slide 7: BNG geology – North Caspian basin

    BNG geology – North Caspian basin  Petroleum rich, lightly explored area  Home of super giant fields  Tengiz  Karachaganak Karachaganak Kashagan  Kashagan  Basin originated by pre-late Devonian Tengiz rifting BNG  Prominent layer of Kungurian salt separates deep & shallow structures Source: U

  8. Slide 8: BNG geology – Shallow

    BNG geology – Shallow MJF structure South Yelemes  Cretaceous and Jurassic  Cretaceous and Jurassic  Independent 4-way dip closed structure  Structure is fault and dip bounded as  3 kms northeast of South Yelemes field shown on the structural map below  Extends to a minimum of 10.2 km2  Poten

  9. Slide 9: BNG geology – Deep

    BNG geology – Deep Airshagyl Yelemes  Upper Devonian/lower Permian  Upper Devonian/lower Permian  Potentially extends to 25.2 km2  Potentially extends to 18.4 km2  Anticipated depths 5,000m  Anticipated depths 5,000m  Drilling costs circa US$8-10m per well  Drilling costs circa US$8-10m per

  10. Slide 10: BNG shallow to date

    BNG shallow to date South Yelemes MJF structure  Wells, 805, 806 and 807  Wells 143, 141 and 142  Production 150 bopd  Production 1,200 bopd  2 intervals/horizons  5 intervals/horizons  Potential 200 bopd from existing wells  Potential 1,500+ bopd from these 3 wells 10

  11. Slide 11: BNG deep to date

    BNG deep to date A5 801 A6  Spudded 2013  Spudded 2014  Spudded 2015  Depth of 4,432 metres  Depth of 5,050 metres  Depth of 4,528 metres  Cost US$10.9m  Cost US$8.7m  Cost US$8.0m  Status – preparing for  Status – well workkover  Status – preparing for side track programme to be complet

  12. Slide 12: BNG development plan

    BNG development plan Deep (5,000 meters) Shallow (2,500 – 3,000 meters) Airshagyl MJF structure  Currently 2 wells  Currently 3 wells  Base plan for 5 more  Base plan for 9 more  Anticipated flow rates 2-3,000 bopd  Anticipated flow rates 500 bopd  Anticipated drilling costs $8 - 10 million 

  13. Slide 13: BNG reserves (100%)

    BNG reserves (100%) 2011 Gaffney Cline  202 mbbls risked  900 mbbls unrisked 2016 Gaffney Cline derived from just South Yelemes structure & MJF structure with only 143 drilled using information as at 31 December 2015  P1 Proved 18 mbbls  P2 Proved + probable 29 mbbls  P3 Proved + Probable + pos

  14. Slide 14: BNG infrastructure

    BNG infrastructure  Atyrau 4.5 hrs  Aktau 7 hrs  Benefits from proximity to Tengiz  Popular with local staff  Oil transportation options  By truck  By pipeline  By railway Source: US EIA 14

  15. Slide 15: Other assets

    Other assets  Munaily  Ownership: post merger 99%  Area 1 sq km Munaily  Full production licence till 2025 BNG  1 producing well H1 (80 bopd)  JV with Chinese partner to re enter up to Beibars 20 wells with 50:50 revenue split  Oil delivered by tanker to Kulshan Field 10kms  Beibars  Owners

  16. Slide 16: Licences and taxation

    Licences and taxation BNG licence Taxation – under exploration/estimation  Until June 2018 exploration/estimation licence  Oil sales at domestic prices (US$10 per  No significant Kazakh taxes are anticipated barrel) during the exploration phase  Work programme commitments  Thereafter full produ

  17. Slide 17: Low cost operator

    Low cost operator  Self operator since Q2 2011  Company has 92 staff in total  Local contractors used on turnkey basis  Supported by international expertise (Schlumberger, Baker Hughes, Halliburton) as appropriate  Single office location in Almaty  Vast majority of staff Kazakh  Drilling cost

  18. Slide 18: Roxi / Baverstock GmbH merger

    Roxi / Baverstock GmbH merger Background Proposed merger  Baverstock - Swiss registered holding entity for  Announced summer 2016 original BNG, Galaz and Munaily investors  Share for share merger based on adjusted  Baverstock holds 10.5% of Roxi and 41% of relative asset values 59:41 Eragon Petr

  19. Slide 19: Outlook

    Outlook  BNG has the potential to be a world class asset  Shallow drilling has already confirmed 29 million barrels P2 gross reserves at BNG  Recent shallow drilling success at Well 141 & 142 may materially increase these reserves  Recent deep drilling success at Well A6 is likely to very materi

  20. Slide 20: Contacts

    Contacts UK Kazakhstan Clive Carver, Executive Chairman Kuat Oraziman, CEO clive.carver@roxipetroleum.com kuat.oraziman@roxipetroleum.com Tel +7 727 3750 202 Tel +7 727 3750 202 Registered Office Head Office 5 New Street Square 7th floor, 152a Karasai Batyra Street London EC4A 3TW 050026 Almaty Repu

  21. Slide 21: Appendices

    Appendices A. PLC board B. Well summary 21

  22. Slide 22: PLC board

    PLC board Clive Carver, Executive Chairman from 2012 (non executive from 2006)  UK based & responsible for UK activities & international financial overview  Fellow of the ICAEW and Association of Corporate Treasurers  Ex head of corporate finance at Seymour Pierce, Williams de Broe & finnCap  No

  23. Slide 23: Well summary

    Well summary Asset Field Re Type Depth Status BNG Deep Airshagyl A5 Exploration 4,432 Preparing to commence side track BNG Deep Yelemes 801 Appraisal - Production 5,050 Well blocked by clogged drilling fluid BNG Deep Airshagyl A6 Appraisal - Production 4,528 Preparing for perforation & testing BNG D

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