Production and Testing from Block 8 Contract Area

In brief · summary, not quotable

Production commenced at Block 8 Deep Well P2 at approximately 250 bopd; testing underway at Deep Well P1.

Production rate at Deep Well P2 approximately 250 bopd
Block 8 Contract Area size 2,823 sq km
Distance from BNG Contract Area approximately 160 km
Royalty cap on Block 8 proceeds $60 million

Full announcement

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The Board of Caspian Sunrise PLC is pleased to update shareholders with news of production and testing from the Block 8 Contract Area.

Background

As previously announced the Group is nearing the end of the process to acquire the Block 8 Contract Area, which extends over 2,823 sq km and is approximately 160 km from the BNG Contract Area. The licence for the Sholkara structure on the Block 8 Contract Area was renewed in Q4 2024 which has allowed the resumption of drilling and testing.

Production

At Deep Well P2 production has commenced at the rate of approximately 250 bopd.

Testing

At Deep Well P1, the well has been perforated across an interval of 3 meters at a depth of 3,400 meters to allow testing to commence.

Following the completion of the acquisition of the Block 8 Contract Area any proceeds from the sale of oil produced there, less a $5 per barrel royalty capped in aggregate at $60 million, will be for the Group. In the meantime the income from the production at the Block 8 Contract Area will be used to start to pay down the loan advanced as part of the Block 8 acquisition arrangements.

Oil trading

Production from the Block 8 Contract Area will allow the continuation of the Group's oil trading activities after the expected completion of the disposal of the BNG's MJF and South Yelemes shallow structures.

This announcement has been posted to:

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.