Update regarding sale of MJF and South Yelemes
Regulatory consent received for $88m disposal of MJF and South Yelemes structures; $46.4m proceeds received.
- Disposal value $88 million
- Proceeds received to date $61.7 million
- Further proceeds due at completion $7.0 million
- Deferred proceeds (12 months) $5.2 million
- Historic Costs obligation remaining $13.8 million
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Introduction
The Board of Caspian Sunrise is pleased to announce that the required regulatory consent for the $88 million disposal of the BNG Contract Area's shallow MJF and South Yelemes structures (the "Disposal") has been received and that a further $46.4 million of the disposal proceeds has been received.
Background
In September 2024 shareholders overwhelmingly approved the Disposal. Since that date the MJF and South Yelemes structures have been extracted from BNG Ltd LLP and placed in a new Kazakh corporate entity ready to be transferred to the purchasers with the vast majority of the detailed steps required to transfer operational control now in place.
The receipt of the regulatory consent was the final substantive step outside the control of the parties in the disposal process.
Disposal proceeds
To date a total of approximately $61.7 million has been received. A further approximately $7.0 million is due to be paid following the transfer of operational control at the MJF and South Yelemes structures, which is expected to take place later this month at which point formal completion of the Disposal is expected.
A further approximately $5.2 million is then due to be received in equal monthly instalments over a 12 month period commencing 6 months after formal completion. Additionally, a further $13.8 million is due to be received over the remaining life of the Historic Costs obligation, which was initially assessed at $32 million in 2019 and has been paid down to the current $13.8 million level.
Use of proceeds
The net sale proceeds will be used to further develop existing projects, including further work at the BNG deep structures, the West Shalva Contract Area acquired in April 2025 and at Block 8, where the acquisition is ongoing; to fund new projects; and for general working capital.
Audited accounts for the year ended 31 December 2024
With the receipt of the regulatory approval and the bulk of the sale proceeds now received work can recommence on the audit of the financial statements for the 12 months ended 31 December 2024, which when published is expected to lift the suspension in the trading of the Company's shares.
This announcement has been posted to:
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