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Pin to quick picksCaspian Sunrise Regulatory News (CASP)

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AGM Statement

30 Jun 2023 07:00

RNS Number : 4580E
Caspian Sunrise plc
30 June 2023
 

 

Caspian Sunrise PLC

 

("Caspian Sunrise", or the "Company")

 

AGM Statement

 

Update on the timing of the publication of the 2022 financial statements; the impact of sanctions; and dividends

 

 

Ahead of its AGM today the Company provides the following update.

 

Publication of the audited 2022 Financial Statements

The Board expects to approve its financial statements for the year ended 31 December 2022 in the first week of July.

 

AIM Rule 19 re-quires that audited ac-counts are pre-pared within six months of the year end. Therefore, in the event they are not signed and published by Monday 3 July 2023 the Company expects trading in its shares would be temporarily suspended from 7.30am on 3 July 2023 until publication.

 

While we cannot refer to any financial numbers to be included in these financial statements we are able to confirm that 792,284 barrels of oil were produced in 2022, some 48% more than in 2021 and a company record.

 

Ukraine war

The two principal consequences of the Ukraine war have been to make international sales uneconomic at the current time and to make operating far more difficult.

 

Urals oil discount

Despite the UK and the EU specifically exempting oil produced in Kazakhstan and transported through the Russian pipeline network being free from sanctions, the large discounts for oil using the Russian pipeline network and emerging as Urals Oil continues with no sign of lessening.

 

We have explored various alternatives to transport our oil but have yet to find a solution that would allow us to sell at or close to international prices. We are therefore selling all our oil on the domestic market at domestic prices.

 

Selling to the domestic market and to domestic mini refineries does have advantages, such as speed of payment and the absence of significant deductions for tax, oil treatment and transportation. Nevertheless, we estimate the loss of revenue to be running at an annualised rate of approximately $18 million based on current production volumes.

 

For much of the period under review and subsequently our inability to sell on the international markets also led to missed profits. However, the recent fall in international oil prices means we are currently achieving broadly the same net outcome by selling to local mini refineries where the deductions to the headline price are much lower, as we would by selling on the international markets.

 

Operations

Before the Ukraine war the majority of international supplies and consumables were sourced via Russia. Now they typically come from China, a vast country whose border with Kazakhstan is some 3,000 kilometers from the BNG Contract Area and where the originating destination is usually far further.

 

The extra distance involved and the complexities of this new supply route with long delays at the border has typically resulted in much greater lead times for key supplies and consumables resulting in some significant operational delays. It has also required a much greater investment in working capital as these supplies and consumables have to be paid for many months earlier than previously.

 

Drilling at certain key wells was paused waiting for key parts and supplies with crews shifting from project to project. The overall impact is that, while progress has been made across a number of wells, it has not been possible to complete the work at any to increase production to the levels expected.

 

Dividends

The financial backdrop to the board's consideration of dividends in the immediate future includes:

 

· We continue to forego approximately $18 million revenue each year based on current production levels as the result of the continuing discount for oil sent through the Russian pipeline network

· Sourcing all key drilling consumables via China has significantly delayed operations and increased costs

· As a result of the operational interruptions, we are yet to increase daily production beyond the current 2,000 bopd

· We have yet to receive the $22.5 million proceeds from the conditional sale of 50% of the holding company for the Caspian Explorer.

 

Accordingly, and with reluctance, the board has decided to suspend further dividend payments until either the end of the year or following a significant increase in production from Wells 141, 142 or 802 or the receipt of the $22.5 million proceeds from the sale of 50% of the Caspian Explorer.

 

The 2022 financial statements when published will include a detailed overview of our assets, progress in the year and subsequently and our views on the future which remain very positive.

 

Contacts:

 

Caspian Sunrise PLC

 

Clive Carver, Chairman +7 727 375 0202

 

WH Ireland, Nominated Adviser & Broker

 

James Joyce +44 (0) 207 220 1666

James Bavister

Andrew de Andrade

 

Qualified person

 

Mr. Assylbek Umbetov, a member Association of Petroleum Engineers, has reviewed and approved the technical disclosures in this announcement.

 

This announcement has been posted to:

www.caspiansunrise.com/investors

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

 

 

 

 

 

 

 

 

 

 

 

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Date   Source Headline
11th Apr 20127:00 amRNSOperational update
20th Mar 20127:00 amRNSBNG Farm-out
8th Mar 20127:00 amRNSOperational Update
8th Feb 201212:36 pmRNSOperational Update
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3rd Jan 20127:00 amRNSNW Konys Pilot Production Consent Update
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27th Jun 201111:21 amRNSResult of AGM
27th Jun 20117:00 amRNSBNG Operational Update
6th Jun 20117:00 amRNSAppointment of Nominated Adviser and Broker
27th May 20117:00 amRNSAnnual Report and Accounts and Notice of AGM
20th May 20117:00 amRNSPreliminary Results
11th May 20117:00 amRNSCancellation of 35 per cent sale of the BNG Asset
3rd Mar 20117:00 amRNSCanamens BNG Funding Announcement
22nd Feb 20117:00 amRNSOperational and Business Update
14th Feb 201110:39 amRNSElemes 135 Well Results
28th Jan 20118:58 amRNSOperations Update
27th Jan 20117:00 amRNSOperational Update
13th Jan 20117:00 amRNSGrant of Options and Directors' Shareholdings
12th Jan 20117:00 amRNSOperational and Business Update
10th Jan 201111:59 amRNSNW Konys Pilot Production Consent Update
7th Jan 20118:50 amRNSYelemes 135 Well Spud
13th Dec 20101:03 pmRNSNK 20 Well Spud
1st Dec 20107:00 amRNSOperational and Business Update
15th Nov 20107:00 amRNSOperational Update
8th Nov 20107:00 amRNSChange of Registered Address & Company Secretary
12th Oct 201010:17 amRNSSale of Ravninnoe Oil LLP Interest
16th Sep 20107:00 amRNSBNG Operational Update
8th Sep 20107:00 amRNSNotice of Results
10th Aug 20109:00 amRNSOperational Update
3rd Aug 20107:00 amRNSGalaz update
14th Jul 20107:00 amRNSRavninnoe and BNG Operations update

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