The Group’s principal asset is its 99% interest in the BNG Contract Area.

The BNG Contract Area is in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometers of which 1,376 square kilometers has 3D seismic coverage acquired in 2009 and 2010. We became operators at BNG in 2011, since when we have identified and developed both shallow and deep structures.

In January 2011, BNG engaged Gaffney Cline & Associates (“GCA”) to undertake a technical audit of the BNG Contract Area and subsequently Petroleum Geology Services (“PGS”) to undertake depth migration work, based on the 3D seismic work carried out in 2009 and 2010.

The work of GCA resulted in confirming total unrisked resources of 900 million barrels from 37 prospects and leads mapped from the 3D seismic work undertaken in 2009 and 2010. The report of GCA also confirmed risked resources of 202 million barrels as well as Most ­Likely Contingent Resources of 13 million barrels on South Yelemes.

The depth migration work that was carried out by PGS enabled Caspian Sunrise to gain a greater understanding of some of the deeper prospects yet to be explored. Caspian Sunrise believes the greater potential exists in the pre salt prospects and has plans to drill further wells to validate this belief.

In September 2016 Gaffney Cline completed an assessment of the reserves and resources attributable to the MJF structure based principally on the results from well 143.

Shallow Structures

There are two confirmed and producing shallow structures at BNG.

MJF Structure

The first wells were drilled on the MJF structure in 2016, since when it has produced over 4 million barrels. A 25 year full production licence running to 2043 and allowing international sales was awarded in 2018. We have embarked on a programme of redrilling the older wells using horizontal drilling techniques to increase production.

Current production at the MJF structure is approximately 2,050 bopd with new well 155 producing at the rate of approximately 700 bopd.

South Yelemes Structure

The first wells were drilled on the South Yelemes structure during the Soviet era, with test production commencing in 1994.

In December 2021 the licence for the South Yelemes structure was upgraded to a full 25 year production licence running until 2046 under which the majority of oil produced may be sold on the international markets.

In April 2024 the Group announced the proposed and conditional disposal of the MJF and South Yelemes structures for a headline consideration of $83 million, which in July 2024 was increased to $88 million.

Deep Structures

We have identified two deep structures at the BNG Contract Area. The first is the Airshagyl structure, which extends to 58 km2. The second is the Yelemes Deep structure which extends over an area of 36 km2.

Airshagyl Structure

Four deep wells have been drilled on the Airshagyl structure, A5, A6, A7 & A8.  Well A8 has been assessed as non-commercial and identified for abandonment. Work continues at the three remaining deep wells on the structure to bring them into commercial production.

Yelemes Deep Structure

Three deep wells have been drilled on the structure 801, 802 and 803.  Well 801 has been assessed as non-commercial and identified for abandonment. At Well 802 we are seeking a partner to bring the well into production and at Well 803 testing is underway.

Operations