Completion of the acquisition of the Block 8
Caspian Sunrise plc has received approval from the Kazakh Anti-Monopoly Authority to complete its acquisition of the Block 8 Contract Area on January 29, 2026. The acquisition involves an initial cash consideration of $100 and deferred consideration of up to $60 million, payable via a $5 per barrel royalty on oil produced from the Block 8 Contract Area, which spans 2,823 km2. Development work has already commenced, with well P1 testing at up to 270 bopd and well P2 at up to 846 bopd, with the aim of achieving commercial flow rates. The company believes Block 8, similar to its BNG asset, may share geological characteristics with the nearby Tengiz and Kashagan oilfields.
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Introduction
The Board of Caspian Sunrise is pleased to update shareholders with news that the consent from the Kazakh Anti-Monopoly Authority for the Block 8 acquisition (the "Acquisition") has been received and that in accordance with the terms of the SPA the Acquisition is set to compete on Thursday 29 January 2026.
Background
The Block 8 Contract Area extends over 2,823 km2 and is some 160 km from the Group's flagship BNG asset.
The Board believes both BNG and Block 8 may have similar geological characteristics as at the nearby world class Tengiz and Kashagan oilfields.
Operations
The arrangements put in place in 2023 when we exercised the option to acquire the Block 8 Contract Area allowed development work there to proceed during part of the extended period between the exercise of the option and today.
At the Sholkara structure well P1 oil has flowed on a test basis at rates up to 270 bopd and at well P2 at rates on a test basis of up to 846 bopd. Work continues at both wells with the intention of achieving commercial flow rates.
Acquisition terms
The licence for the Block 8 Contract Area is held by EPC Munai LLP, a limited liability partnership registered in Kazakhstan, which is in turn owned by Procyon Capital Limited, a company registered at the Astana International Financial Center in Kazakhstan.
Caspian Sunrise PLC will acquire 100% of Procyon Capital Limited for an initial consideration of $100 payable in cash and deferred consideration of up to $60 million from the oil produced at the Block 8 Contract Area payable in cash via a $5 per barrel royalty.
Comments:
Clive Carver, Chairman said
"We are delighted to be competing this acquisition on terms that do not dilute shareholders.
We believe Block 8 represents, in addition to the deep structures at BNG, a second potentially transformative asset in that either or both may enjoy the same geological characteristics of the nearby world class Tengiz and Kashagan assets."
This announcement has been posted to:
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