Caspian Sunrise Regulatory News (CASP)

Caspian Sunrise PLC

("Caspian Sunrise" or the "Company")

Operational update

Introduction

Caspian Sunrise the Central Asian oil and gas company, with a focus on Kazakhstan, is pleased to update the market with news at the BNG Contract Area of progress at its Deep and Shallow Wells.

Deep Wells

As previously reported we got off to a slow start in January and February following a prolonged period of exceptionally cold weather when little meaningful work was possible on our deep wells, A5, 801 and A6.

Deep Well A5

This well had been on a 90-day flow test at the end of Q4 2017 with flow rates reaching 3,800 bopd using a 16mm choke. Blockages in the well led us to reduce the choke size to 6mm and flow rates fell to some 1,000 bopd.

To maximise the results of the flow test and supply the best information on which to calculate reserves we decided to suspend the flow test and clean out the well.

The cheapest and potentially quickest way to accomplish this was by use of coil tubing equipment. However, after considerable time and effort was expended we decided coil tubing was unlikely to produce the outcome desired. Accordingly, the coil tubing operation has been discontinued.

A rig has been mobilised to remove the entire tubing string from the well. This is a more expensive but more certain solution but one that would have been difficult to use earlier in the year in the extreme low temperatures.

Pressure in the well remains high at 300 bar at the wellhead, which suggests there is still good communication throughout the length of the well.

Our expectation is that, if successful, the well could be flowing and be ready to be put back on a new 90-day test.

Deep Well 801

As previously announced our plan to bring Deep Well 801 into production was by drilling a side track of between 450 - 500 meters from a starting depth of 4,501 meters. After weather delays and initial difficulties in drilling through the metal pipes and casing the recent progress of the side track has been encouraging.

To date we have drilled 132 meters of the total but expect to increase significantly the pace of drilling such that we would reach total depth in Q2 2018, following which this well would also be ready for a 90-day flow test.

As with well A5 the pressure in Well 801 remain high.

Deep Well A6

Our plan with Deep well A6 remains to re-perforate the well using more powerful explosive charges.

The drill pipes to be used in this operation are currently in use at Deep Well 801 and work at Deep well A6 will not commence until the pipes at Deep Well 801 are released.

Shallow wells

MJF

We continue to produce from 4 of the six wells drilled at the MJF structure. The aggregate production from wells 141, 143, 144 & 145 has over the past three months averaged 1,900 bopd.

The issue at wells 142 and 146 is the proportion of water produced with the oil. We intend to engage a leading international contractor to isolate the water from both wells so that they might each produce at the rate of some 200 bopd.

The Company's management consider the probability of success at Well 142 high as it has already demonstrated that it is capable of sustained production at economic rates.

Soviet Era wells

As previously reported, in July 2017 well 54 was successfully re- completed.

The previous average daily oil production from sandstone of the middle Jurassic was some 90 bopd. In addition wells 805, 806 & 807 also had a combined production rate of 110 bopd form the same Jurassic sandstone intervals.

Examination of the core and logs from these wells indicates that although individual production zones are relatively thin at c 5 meters, the potential for multiple pay intervals, high reservoir quality and high oil saturation makes these potentially good reservoirs to consider for exploration by horizontal drilling.

In additional to the known Jurassic sandstone reservoirs additional prospectivity exists with a thin (10 meter) but laterally extensive dolomite interval within the late Jurassic sandstone section.

A pilot study to test the viability of horizontal drill programme to produce from these intervals is planned to begin in 2019.

Move to full production licence

As previously announced we are able from 1 July 2018 to apply to move individual structures to a full production licence under which we would expect to double the price achieved per barrel for oil produced.

The MJF structure will be the first of the BNG structures to apply for full production status. Recent changes to Kazakh regulations have abolished the bonus payment typically made to the state on such a move, which is likely to save some $6 million.

Comment

Clive Carver, Chairman said:

"Progress in Q1 2018 was slow, partly through weather related delays and partly through equipment failures. Encouragingly progress in Q2 has picked up so that we have expectations of the blockages currently in Deep Wells A5 and 801 being cleared to allow 90-day flow tests to resume later in Q2.

Production at our shallow wells continues to fund the bulk of our day to day work at BNG where the price derived per barrel is set to double from Q3 2018."

Ends

Qualified Person

Mr. NurlybekOspanov, 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.