Member Info for JoeSoap

The RNS yesterday included these words: "Extracts from the Circular are included below."

The Circular will include Resolutions and Voting instructions.

Two months ago we were told in 02 July 2024 Operational Update RNS - BNG production

"Including the oil flowing at Well 155 the aggregate production from the BNG Contract Area is now

between 2,500 and 2,600 bopd."[when the well is now flowing at between 900 and 1,000 bopd.]

Since then 155 had been restricted to 700bopd, and now re-confirmed in the extract:

"MJF production is currently approximately 1,350 bopd, including approximately 700 bopd from the recently drilled Well 155."

Add the "South Yelemes production is currently approximately 250 bopd" and we get approximately 1600bopd approximately. The same as reported in the June prelim [before 155 production] and clearly down on the "approximately 2,300 bopd" in the July AR. The total now is only marginally more than the MJF 2023 average of 1,579 bopd. The 'Commercial rationale' expressed makes sense given their day to day operation of maturing assets, and the cost of maintaining production levels.

Aside from the usual funding & licence transfer conditions, meaning that the $14M are not yet securely in the bag, there is this annulling clause:

"Absolute Resources has made certain assumptions regarding the Disposal which, if any are incorrect, entitle Absolute Resources to withdraw from the transaction or otherwise renegotiate the Heads of Terms."

So, what 'assumptions' do they have? Any for 815...

Belles, think Caspian need a licence before they can deliver the deep well.

AR:

The process to extend the existing Airshagyl and Yelemes Deep appraisal licence for a further

two years before then upgrading to separate 25 year production licences is underway under a

new streamlined process which is expected to be completed during Q3 2024.

Got to hope the new streamlined process is well understood by all and that there are no unforeseen glitches.

Meanwhile

Sale update:

Absolute Resources LLP, had been granted a 90 day exclusivity period to conclude its due diligence.

In addition, the exclusivity period has been extended until 31 August 2024 to provide time to conclude a formal sale & purchase agreement.

So DD done, SPA awaited.

Casp, for their part, have to create BNGshallows newco holding the shallow licences.

September on Sunday, AR & SPA GM news Monday?

Mesdames et messieurs, faites vos jeux !

Imminently then.

From SEDAR:

Meeting Type:Special Meeting

Meeting Date:September 26, 2024.

@Horult, All those who funded the 5p and 11p raises for the Canadian assets have had their funds returned with profit and also had the divis.

Mission accomplished.

Deepjoy, were you watching closely on Friday afternoon?

63 trades for the day, and yet 17 of those occurred in an 11 second window. 14:45:23-33.

It included A, O and SINT trades at volumes much greater than their penny numbers usually seen at first bell.

Any views?

TIA

"Just because they've applied for the two extensions ..."

Where have you read TWO extensions?

From the AR:

We currently have a combined licence for the Airshagyl and Yelemes Deep structures which we

intend to extend for a two year period before applying for separate 25 year licences for both

structures. We already have separate production licences at both the MJF and South Yelemes

structures running until 2043 and 2046 respectively.

Somm asks: In saying all that though shouldn't CASP tell us so in a RNS or have they already told us what the Yelemes expiry date was, anyone?

They have. I've previously pointed you to it. They frequently say they hold three licences, two at production level for MJF and SY and one for appraisal, which is now being renewed. In the AR, expected future events, Q3 2024 - Award of licence extension for BNG's Airshagyl & Yelemes Deep structures.[singular]

HTH

Leveller, as a Casp follower you should know that it is a half FULL book...

Somm, the first post included "Maybe they are waiting for the licence renewal, maybe they've got it " . The second post was to 'flippant Dm', and attempted to be equally flippant with the link.

The RNS referenced provided the date and justification in suggesting that PI's are perhaps not alone in waiting.

HTH

Dm, I just tried to provide a summary of July's posts which continue now into August wk1 to keep any new readers updated ;-)

For the record, the licence expired on Sunday.[RNS 14th June]

Perhaps join the operatives in a chorus:

https://www.youtube.com/watch?v=T3to8QdXlpU

Deepjoy, they are now reporting to the Canadian quarterly schedule.

https://www.asc.ca/issuer-regulation/fees-and-filing-deadlines

On or before next Wednesday?

Maybe they have the test results, maybe they don't

Maybe the oil flowed, maybe it didn't

Maybe the pressure was sustained, maybe it wasn't

Maybe it is commercial, maybe it isn't

Maybe they are 30 day testing, maybe they aren't

Maybe they are drilling on, maybe they can't

Maybe they are waiting for the licence renewal, maybe they've got it

Maybe I'm right. Maybe I'm wrong.

Whatever, but imo they have to announce a material changing event within a couple of days.

The success of 155 will have raised the material reporting threshold, being originally over half of the existing production and last reported at over 40% of that previous production level.

Are you thinking that they had not applied for a flaring licence as they were waiting to see how the pre-salt drilling progressed, mindful of the fact that they may have to sit and wait for the licence renewal? [Plan was to go to Production Licence and work would be on hold until it was granted.] And then "the well made a serendipitous shallow oil discovery above the Kungurian salt and the company chose to complete the well higher than originally planned to test that zone."; wrong footing them as they were ill-prepared and not fully equipped to undertake a flowtest. What was the diameter of the casing that Spangle suggested?

So is this new information that new broom Zeus have extracted from Caspian, or is it delayed from WHI? The licence info suggests delayed to me, but 803 'completed', hmmm.

Is this the same Brendan that was on the case with WHI? PMSL

And why is CC noted in BOD CV "In July 2023 he reverted to being non-executive chairman." Yet in the AR he is Exec.

Hokey kokey title :-))

The H1 RNS signed off

Clive Carver

Non-executive chairman

25 September 2023 And both agree he is CFO, which he gave up in 2020.

YCNMIU and yet they expect us to believe the updates on the difficult technical challenges they face when they cannot remember what hat they wear from day to day.

jimo

joe

Cc, 12p was the opening 'bid'.

closed out at

"3A Best

In January 2019, we acquired 100% of the 3A Best Group JSC, a Kazakh corporation owning an existing Contract Area of some 1,347 sq.km located near the Caspian port city of Aktau, for a final consideration of $11.8 million payable by the issue of 149,253,732 Caspian Sunrise shares issued at a price of 6.15p per share."

he will kindly accept stock ....

More than likely: at a fair price according to the NEDs having received advice from the Nomad!

Think he may go to 4p to match recent deal?

Smarty, the loan was for up to $5M-

"The resumption of production at Block 8 will trigger the commencement of the repayment of the $3.1 million loan advanced to allow the 2023 drilling work at Block 8 to be completed. For further details see Note 16."[2023AR pg8 & 17]

And pg 64 "repayment of the $3.3 million loan advanced to enable the 2023 work programme at Block 8 to be completed" - which may include the 7% interest.

Note 16 [pg 81]

"On 25 September 2022, the Independent Directors approved a 7% interest-bearing loan to a maximum value of $5 million to Altynbek Bolatzhan, a member of the Oraziman family, in connection with the party acquisition of EPC Munai LLP (“Block 8”). At 31 December 2023, US$ 3,070,000 (2022: US$ 1,356,000) of that loan had been drawn down, including US$ 1,545,000 advanced during the year ended 31 December 2023. The loan is to be repaid whether or not the acquisition of Block 8 completes." We do not have any info for 2024, but as ‘EPC drilling contracts were were all either completed or terminated during 2023 when EPC’s licence over the contract area expired.’ why would he need more?

"Trade receivables

The trade receivables balance includes US$ 3,703,000 (2022: US$ nil) due from Block 8 for the provision of drilling services by the Group on the Block 8 licence area. The balance remains outstanding as of the date of this report due to the ongoing acquisition of Block 8."

So we have A - the Block 8 proceeds or B - it does not, either because Kaz says no or UAE does.

For A: the licence has to be renewed to EPC Munai LLP through Kaz and then re-registration of company ownership to Casp in UAE.

“With the licence renewed, production recommences and triggers the start of repayment.” But on what terms and the Trade receivables $3.7M? Could it be offset by reducing the headline $60M?

For B: The $3.3M becomes due as does Trade receivables $3.7M. The $3.3M loan is guaranteed by KO and would be paid from his future dividends.

BUT AB already has a holding and WS will give him $5M of 4p shares, c.100M. And we know that a 2/3/4.. bagger is imminent (!) so by selling a fraction he can clear all the accrued debt and that's without touching his imminent MJF/SY divi on all those shares.

cc you are normally on top of these money-go-rounds! What do you foresee?

And somm, when the licence is awarded (say Q3) the testing can begin under EPC Munai's existing ownership, pending UAE re-registration, ie sale completion. Costs for same can be lost in the accounts as past practise!

jimo

joe

The most recent comments on Serenity can be found in the Q1 2024 MDA from mid-May:

"i3 continues to work with its partner Europa Oil and Gas to advance a field development plan for a one-well development for the Serenity field."

They also state that "Management conducted an assessment of indicators of impairment for its E&E assets as at 31 March 2024, concluding that no indicators of impairment were identified."

["Examples of indicators of impairment include whether:

(a) the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future and is not expected to be renewed."]

If September 30th is not considered 'near future' they must expect renewal,imo.

Moreover, they say "During Q1 2024, additions to intangible exploration and evaluation assets totalled £0.3 million related to continued evaluation of the Group’s UK Serenity asset." [cf. Canada £0]

Whilst I agree with the view from Tony that it is becoming more unlikely by the day we should not overlook the fact that the majority of the BOD is still from i3E's NS days.

In the event that the licence just lapses or is impaired in H1, due to some unforeseen weasel words, then the accounts will need to show the write off.

And that then opens another debate on retaining the London listing and dealing through Canada only, with the inconvenience for upto 90% of the holders. Perhaps that is reflected in the SP already. ;-)

DD says Mr Calver isn't technical, so he has to be there for some purpose in a technically challanging business !

Perhaps you recall that he is no longer the CFO, (that hat was passed to Talgat Kuzbakov), so he escapes the blame for any misstatements in the accounts. His Secretary role was then taken by Erwin Blik.

So, just Non Exec Chairman, and AR author where he writes:

Expected future events

Q3 2024

•Licence renewal at Block 8

•Caspian Explorer charter completed

•Confirmation of C1 style reserves for the Yelemes Deep structure at BNG

•Award of licence extension for BNG’s Airshagyl & Yelemes Deep structures

•Production commences from Block 8 from existing wells

•Testing new well at Block 8

•First well drilled at West Shalva

•Acquisition of a G70 rig

Q4 2024

•First mining acquisition

•Completion of the West Shalva acquisition

•Completion of the Block 8 acquisition

With the exception of 'CE charter completed' and 'Acquisition of a G70 rig' all are at the behest of the men from the ministry.

It is unclear whether the seller is responsible for getting the B8 licence renewal, that is then transferred to Casp. "On renewal of the licence, which is a condition of the acquisition, completion of the acquisition will be dependent on the customary approvals from the Kazakh authorities and the re-registration of ownership in the UAE." and "The completion of the acquisition is subject to, inter alia, Block 8 renewing its licences and gaining regulatory approvals, which as at the date of approving these financial statements have not been received and therefore the acquisition has not been completed."

However, it is "expected imminently", which would allow production and testing, subject to the wording of the work commitments.

"The process to extend the existing Airshagyl and Yelemes Deep appraisal licence for a further two years before then upgrading to separate 25 year production licences is underway under a new streamlined process which is expected to be completed during Q3 2024."

In the Preliminary Report just 18 days earlier it was direct to production licences. Now additional work commitments could be required, and the streamlined process is unlikely to deliver before the expiry [August 4] which will mean a cessation of work if B8 renewal is the exemplar, but hopefully somewhat quicker, and that there is no penalty for not drilling 803 to TD in time.

jimo

joe

The "end of the week" is still to come.

Perhaps our anticipation/excitement/'hyperbole of your choice' leads us to say what we see and not read what was said?

What will happen on August 8th?

Will the current testing activity compromise the acquisition all the planned info needed to make a meaningful production licence application before licence expiry?

Cc, The point is the licences could be under different operators, like 3AB and Total/new owners.

Furthermore, the volume of oil was unknown when the MJF sale was announced...

and will then have different operators!

RNS 2023 Prelim:

Operational overview

BNG

At BNG our prime focus was to complete the work programme obligations required to renew the

licence for the Airshagyl & Yelemes Deep structures from August 2024, being principally Well

155 on the MJF structure and Deep Well 803 on the Yelemes Deep structure.

We currently have a combined licence for the Airshagyl and Yelemes Deep structures but intend

to seek separate 25 year licences for both structures. The application for the Airshagyl structure

is underway and the application for the Yelemes Deep structure will be submitted after

completing work at Deep Well 803. We already have separate production licences at both the

MJF and South Yelemes structures running until 2043 and 2046 respectively.

?

Why would the Licence renewal for the deeps require an additional well to be drilled on the full production awarded MJF licence area?

No, me neither.

joe.