Caspian Sunrise: Aiming to Benefit from Higher Production and Oil Price

The Board of Caspian Sunrise is pleased to update the market with news of the $6.2 million debt conversion, to provide an operational update including the impact of sanctions imposed against Russia.

Debt Conversion

At the General Meeting earlier today Independent Shareholders approved the resolution required to implement the proposed Debt Conversion in full. 30,442,701 votes, representing 97.05% of those cast, voted in favour of the resolution or gave discretion to the Chairman of the meeting. 926,869 votes, representing 2.95% of those cast voted against.

The 139,729,446 Debt Conversion shares will be issued later today. Application will made to London Stock Exchange for these shares to be admitted to trading on AIM (“Admission”), and dealings in the new ordinary shares are expected to commence on or around 15 March The new shares will, when issued, rank pari passu in all respects, and carry the same rights as the existing Ordinary Shares. Following Admission the total number of ordinary shares in issue will be 2,250,501,560.

The Oraziman Family Concert Party will in aggregate hold 1,089,544,792 shares representing 48.41% of the enlarged number of shares in issue. The Wider Concert Party, of which the Oraziman Family Concert Party is a member, will hold 1,460,918,437 shares representing 64.92% of the enlarged number of shares in issue.

Operational update

Shallow wells

In February 2022 we produced at the rate of 2,396 bopd.

Work continues at Well 142, where testing was interrupted by the shut down at the BNG Contract Area in early January. Preparatory work also continues to drill the first horizontal well on the South Yelemes structure.

Deep Wells

At Deep Well A8, we perforated the first of the three intervals of interest, which resulted in oil flows at approximately 100 bopd.  We are preparing to perforate a second interval later this month.

Impact of sanctions on Russia

To date we have not experienced any material adverse impact from the sanctions imposed on Russia.

Comment: Clive Carver, Chairman said

“With oil prices at record levels and increasing production volumes we look forward to a period of cash generation. Accordingly, we intend to put resolutions to the Annual General Meeting planned for June 2022, which if passed and if approved by the UK Court, would allow the commencement of dividends with an initial dividend expected to be declared in July 2022 and with the main dividend for the year expected to be declared in December 2022.”