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, covering an area of 1,702km2.

Shallow wells

MJF structure

To date the MJF structure is the best performing of the three potential shallow structures identified at BNG and from which has the capacity to producing at the rate in aggregate of some 1,130 bopd from 3 wells including more than 600 bopd from the initial Well 143.

Well 143 was drilled in 2013 to a depth of 2,750 meters to explore a potential new structure. After delays to clear the well of excess drilling fluid, we tested the well at 5 separate intervals, with the result the well is currently producing at the rate of 610 bopd using an 8 mm choke.

Wells 141 and 142 were subsequently drilled to depths of 2,500 meters to assess the extent of the MJF structure. The results of work to date has confirmed that the extent of the structure to be at least 10km2.

In May 2017, we announced the spudding of Well 144, with a planned Total Depth of 2,500 meters targeting the same Jurassic Callovian sands at a depth of 2,200 meters.

We are pleased to report the well was drilled to total depth without incident. Four intervals have been perforated for flow testing. The first interval tested is flowing at the rate of some 1,000 bopd using an 8mm choke. Our plan is to proceed with a long-term testing to evaluate the well potential.

Well 144 is located some 0.89 km from well 141 and some 2 km from well 143, which is believed to be near the centre of the MJF structure. Success at Well 144 significantly extends the size and value of the MJF structure beyond the 10km2 previously assessed.

Potential New structure

With well 808 we have explored a potential new structure targeting Cretaceous Jurassic and possible Triassic horizons. If successful the New Structure has the potential to rival the success of the MJF structure.

As previously announced Well 808 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 previously announced the lower intervals tested between 3,038 - 3030 meters and between 3,014 and 3,008 meters contained shows of oil films but tested water with gas and are not considered worth pursuing. However we now believe that there may be a leak in the well casing resulting in water inflow.

Once the casing has been assessed, and if required repaired, we will retest the lower intervals and also the remaining intervals between 2714 - 2716 meters; 2646 - 2648 meters; 2557 - 2559 meters & 2356 - 2363 meters are planned for perforation and testing.

In the event the results of testing the remaining intervals at Well 808 indicate the presence of a significant quantity of oil a further two wells are planned for later in 2017.

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 150 bopd.

Whilst useful these are not rates high enough to warrant significant further investment given the other opportunities at BNG.

Production from the South Yelemes structure is approximately 75 bopd due to shut-in and pressure build up.

Deep Wells

Deep Well A6

Deep Well A6 was the third deep well drilled. Lessons were learned from the earlier wells and with the exception of delays penetrating the salt layer the drilling of the well was less eventful than for either deep Well A5 or deep Well 801.

Analysis of mud and wireline logs has shown the presence of a hydrocarbon bearing reservoir with a vertical column potentially in excess of 100 meters.

In January 2017, as previously announced, the lower 46 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 successfully perforated using a different leading international contractor.

Results from limited testing to date have been inconclusive. Caspian Sunrise management believe the pressure in the well has limited to impact of the perforation work undertaken to date. Further perforation work is planned in July, following which the well will be assessed for flow testing.

Deep Well A5

Deep Well A5 was the first of the deep wells to be drilled and like deep Well A6 has been drilled on the Airshagyl structure. 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. We no longer believe an open-hole test is the best way forward and have decided to side-track from a depth of 4,000 meters, following which we would hope to be able to conduct the long waited flow test.

The work to allow the side track to commence was planned using a 40 tonne ZJ-40 rig. As the work programme advanced it was clear that an excessive and possibly dangerous strain was being placed on the rig's engines. According it was decided to stop the work and use a heavier 50 tonne RT-50 rig.

The previous rig has been dis-assembled and the new rig assembled and is expected to be come fully operational shortly, following which work on the planned the side track will resume.

Clive Carver, Executive Chairman, Caspian Sunrise comments:

"We are naturally delighted with the early results from Well 144, which should materially increase the proven size of the structure and increases our aggregate production capacity to well over 2,000 bopd.

We look forward to determining if the New Structure demonstrates it is on a par with the MJF.

Notwithstanding our successes in the shallow structures we remain focussed on getting our drilled deep wells to flow sufficiently to report production levels and to be in a position to quantify reserves."

 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.