BNG deep structures conditional funding
BNG secures conditional $72.5m investment for 50% stake to develop deep structures, contingent on shallow structures sale.
- Conditional investment for 50% stake in BNG $72.5 million
- Total funding available for BNG deep structures development $85 million
- Net new funds to be contributed by Caspian Sunrise Group $12.5 million
- Sale of BNG shallow structures $88 million
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Introduction
The Board of Caspian Sunrise is pleased to provide the following update regarding the future funding of the development of the BNG Contract Area's deep structures.
Conditional funding to develop the BNG Contract Area's deep structures
The Board is pleased to announce that it's 99% subsidiary, BNG Ltd LLP ("BNG"), has entered into conditional and non-binding heads of Terms ("Heads of Terms") with a prominent middle east financial institution for that institution to invest $72.5 million for a 50% stake in BNG Ltd LLP, following the disposal of the BNG shallow structures, the process for which is ongoing and has a long stop date of 28 February 2025.
Under the Heads of Terms a total of $85 million would then be available to further develop the BNG deep structures, of which the Caspian Sunrise Group would contribute net new funds of $12.5 million.
A formal investment agreement would be required before any such new funding is available, which in turn would be dependent on the completion of the current $88 million sale of the shallow structures at the BNG Contract Area; the receipt of the new 25 year production licences for the two deep structures at the BNG Contract Area; and the associated formal Kazakh Geological Committee confirmations of the submitted deep structure reserve estimates.
Further announcements in respect of the progress of the conditional investment in the BNG Contract Area's deep structures and the progress of the Group's various ongoing other corporate transactions and licence upgrade applications, including the sale of the MJF and South Yelemes structures, will be made in due course.
Comment
Clive Carver, Chairman said
"Although there is clearly some way to go before the current interest in further developing BNG's deep structures provides the funding for the next stage in the development of these potentially world class assets, it is encouraging to note the indicated terms on which such new funding might be available."
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