MJF Licence Upgrade Signed
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
MJF licence upgrade signed
The Board is delighted to announce receipt of the much anticipated MJF licence upgrade. Accordingly, the majority of oil produced from the MJF structure on the BNG Contract Area may now be sold by reference to international rather than domestic prices.
Under the licencing system in Kazakhstan, oil produced under an appraisal licence must be sold at domestic prices. Over the last couple of years the domestic price has been in the range of $18-20.
Once a Contract Area, or in this case a structure within a larger Contract Area, has moved to a production licence, the majority of the oil produced from that structure may be sold by reference to international prices.
Under the terms of the new MJF production contract the proportion of export sales to domestic sales is set at the ratio 70:30.
The Company has appointed an agent experienced in marketing oil to the international market and the first sales of such oil are expected in Q3 2019.
Clive Carver, Executive Chairman said:
"The arrival of the much heralded MJF licence upgrade, with its near doubling of the price we can expect for the oil produced from that structure, will allow the Company to move forward at faster pace with both our development plans for MJF structure and in bringing our deep wells into production."
Caspian Sunrise PLC
+7 727 375 0202
WH Ireland, Nominated Adviser & Broker
+44 (0) 207 220 1666
Yellow Jersey PR
+44 (0) 203 735 8825
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