Caspian Sunrise Regulatory News (CASP)

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

formerly Roxi Petroleum Plc

BNG Operational Update

Introduction

Caspian Sunrise PLC (formerly Roxi Petroleum plc) ("Caspian Sunrise"), the Central Asian oil and gas company, with a focus on Kazakhstan, is pleased to update the market with news from its BNG Contract Area.

Background

Caspian Sunrise has a 99% interest in the BNG Contract Area, which is located in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast.

In July 2018 we have the opportunity at BNG, subject to regulatory approval, to move from an appraisal licence, where oil produced must be sold at domestic prices - currently some $16 per barrel - to a production licence, where the majority of oil produced may be sold at world prices.

Shallow wells

MJF structure

Well 144

The board is pleased to announce that well 144, which was spudded in May 2017 and commenced production in July 2017 is flowing at the rate of 700 barrels of oil per day (bopd) using a 7mm choke.

Aggregate production from the MJF field is running at the rate of approximately 1,693 bopd. Income from the MJF structure alone, even taking into account selling oil at domestic prices, now allows Caspian Sunrise to cover all its general, administrative and shallow drilling costs.

New Wells

Caspian Sunrise also announces that Well 145 was spudded in July 2017 and has reached a depth of 1,150 meters without incident. Well 145 is situated some 0.95 kilometres from Well 143.

Well 145 is targeting the same Jurassic Callovian sands at a depth of 2,200 meters with a secondary objective in the Cretaceous Valinginian limestone at a depth of 1,900 meters as wells 141, 142, 143 and 144.

The costs of the well are expected to be approximately $1.5 million and the total depth of 2,500 meters is expected to be reached in September 2017.

Following completion of Well 145 the Company intends to drill a similar Well 146 on the MJF structure.

MJF Reserve update

Increasing the number of successful wells at the MJF structure provides additional operational cashflow and is expected to add to the reserves due to be updated by Gaffney Cline after Well 146 is drilled and tested.

The MJF structure already extends to over 10 km2. In the event both wells 145 and 146 are successful the MJF structure area would confirm our expectations of the MJF structure and demonstrates it extends to a greater extent.

Potential New structure

As previously announced with well 808 we have explored a potential new structure targeting Cretaceous Jurassic and possible Triassic horizons. The well was spudded in January 2017 and drilled to a depth of 3,200 meters in March 2017 without incident and six intervals of interest identified.

We also previously announced the lower intervals tested between 3,038 - 3030 meters and between 3,014 and 3,008 meters and we also tested interval between 2356-2364 meters that contained shows of oil films but tested water with gas and are not considered worth pursuing. However we believed that there may be a leak in the well casing resulting in water inflow. Further announcements in connection with well 808 will be made as information becomes available.

South Yelemes structure

The South Yelemes structure was first identified as an oil producing structure during the Soviet era.

During the Group's involvement with BNG three new shallow wells (805, 806 & 807) have been drilled and in aggregate these have produced at the rate of 150bopd.

Well 54

Well 54 was drilled during the Soviet era. In 2016 the well was shut in as the production levels had declined to a sub economic level. Recently an interval was perforated between 1,961 meters and 1,971 meters in the Valanginian horizon to assess the likelihood of a new interval potentially extending over the whole South Yelemes portion of the BNG Contract Area.

Production from this interval, without any artificial stimulation, has settled at the rate of 30 bopd for a number of days. While small, should the interval tested extend across all our four existing wells at South Yelemes we may be able to add incrementally to our production..

Aggregate Shallow Production

Aggregate shallow `production is running at the rate of 1,935 bopd, comprising:.

· From the MJF structure at the rate of approximately 1,693bopd.

· From the South Yelemes, at the rate of 182bopd

· From Munaily at the rate of some 60bopd

Deep Wells

Deep Well A6

In January 2017, as previously announced, the lower 46 meters from a total interval of interest of 100 meters, were poorly perforated although the limited recoveries tested with oil films, water and gas.

In April the top 60 meters of the 100-meter plus interval were perforated using a different leading international contractor. The results from this interval were inconclusive, possibly because the extreme pressures require more powerful perforation equipment.

Accordingly, an interval of 60 meters between 4,313 meters and 4,383 meters was perforated using specialised bullets designed to operate at temperatures of at least 130 degrees Celsius. Swabbing operations have been conducted but to date there have been no significant shows of oil.

We intend next to attempt to stimulate the flow of oil from the perforated interval using hydraulic fracturing.

Further announcement on the outcome of this work will be made as the results become available.

Deep Well A5

Deep Well A5 was the first of the deep wells to be drilled. The well has produced for a few hours at the rate of 2,000 bopd but has not yet flowed sufficiently for a prolonged well test.

Extreme high pressure and temperature resulted in a difficult drilling phase, which led to the initial decision to test the well on an open-hole basis. However, for some time, we have believed a side-track from a depth of 4,000 meters would be the best way forward. Work to accomplish this was delayed as we switched from a lighter rig to the current 50 tonne RT-50 rig to avoid excessive wear on the rig's engines.

We have removed the majority of the 4,290 meters of production tubing in the well. Once fully removed we shall proceed to drill out from the casing tubing from a depth of approximately 4,300 to 4,500 meters.

Deep Well 801

Deep Well 801 was the second deep well to be drilled and was drilled under contract by Sinopec, the leading Chinese contractor. To date this is the only deep well drilled on the Yelemes structure.

As with Deep Well A5 the well has flowed for short periods at the rate of 2,000 bopd before becoming blocked.

While waiting for the 50 tonne rig to become free and transferred from use on A5, the technique being used on this well has been a mixture of chemical washes and to use the natural pressure in the well to slowly remove the excess drilling fluids.

After work at A5 has been completed we plan to dis-assemble the 50-tonne RT -50 rig and re-assemble it over Deep Well 801. It will then be used to attempt to remove the stuck pipe at Deep Well 801 and clear the well for flow testing.

Over the past few months we have routinely opened the well when pressure reaches 250 bars to avoid the excess pressure damaging the well. After opening the well oil has flowed to the surface under its own pressure. We therefore remain confident that when cleared this well will flow under its own pressure.

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Clive Carver, Executive Chairman, Caspian Sunrise comments:

"We continue to be extremely pleased with progress at the MJF structure, which now even at domestic prices, funds the day to day costs of the Group and our shallow drilling operations.

We are continue working to seek to get A6 flowing and are now close to finishing the planned work at deep Well A5, after which the rig involved will be released to tackle Deep Well 801.

We will continue to provide updates on progress at each of the se three deep wells as it becomes available.

Ends

Qualified Person

Mr. Nurlybek Ospanov, Caspian Sunrise PLC's Chief Geologist / Technical Director who is a member of the Society of Petroleum Engineers ("SPE"), 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 by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.