Caspian Sunrise PLC

("Caspian Sunrise" or the "Company")

Operational, financial and shareholding update

The Board of Caspian Sunrise is pleased to provide the following update:

BNG Shallow Wells

MJF Structure

We are pleased to report that our latest well on the MJF structure, Well 153, has commenced production at the rate of approximately 830 bopd, using a 8.5mm choke.  As with Well 154, which continues to produce at the rate of approximately 600 bopd, Well 153 was drilled as a horizontal well.

The additional production from Well 153 has increased overall production levels to approximately 2,300 bopd.

The next new well to be drilled on the MJF structure will be Well 152, again to be drilled as a horizontal well. We are also re-drilling existing wells on the MJF structure on a horizontal basis, with existing Well 142 the next to receive a 600 meter horizontal side-track.

South Yelemes

We have been informed that all the supporting documentation required for the upgrade to export status have been approved and the upgrade will be granted on the Minister's signature.  Once received, this will allow the existing wells on the structure to be reopened with an expected 300 bopd addition to production volumes, the majority of which can be sold on the export market. Additionally, we plan to drill a new horizontal well on the structure targeting oil in the shallow Dolomite.

The South Yelemes licence upgrade should also allow us to add to our proven reserves.

Deep Wells

A8

Deep Well A8 has been drilled and logged to a depth of 5,450 meters without incident. Three potential oil bearing intervals covering, in aggregate, approximately 140 meters have been identified, with an initial 5 meter section already perforated. We expect to have results of this perforation shortly to announce.

Work to progress existing deep wells A5, A6 and 801 remains on hold.

Further deep wells

In compliance with our existing work programme obligations a new deep well on the Airshagyl structure, Deep Well A7, is set to be spudded before the end of the month. The well has a planned Total Depth of 5,300 meters and is targeting oil in the Carboniferous and Devonian.  Drilling is expected to take approximately 4 months.

A further deep well on the Yelemes Deep structure, Deep Well 802, is also planned to be spudded early next year, with a planned Total Depth of 5,300 meters and is also targeting oil in the Carboniferous and Devonian. Drilling is also expected to take approximately 4 months once spudded.

These wells will be drilled using the Group's own rigs.  The casing for Deep Well A7 and 802 has already been acquired and accordingly the remaining cash costs for both these wells are expected to be much lower than for any deep wells drilled to date.

These are the final two deep wells required under the BNG work programme. Once completed any further deep wells will be drilled on a discretionary basis.

Cashflows

The current relatively high oil price has transformed the Group's financial position compared to that in 2020.

Deep Wells A7 and 802 are the final deep wells required to be drilled under the terms of the BNG licence. Once completed and provided the oil price continues at existing levels the board expects the cashflows from operational activities to improve significantly.

Debt Conversion

Work is progressing with the various regulatory bodies required to implement the proposed debt conversion announced earlier this year. A circular convening a general meeting to consider the required shareholder resolutions will be issued in due course.

Extension of option exercise period

The Board, other than Clive Carver who was recused, has agreed to extend the exercise date for his existing options over 2.4 million shares  from 14 December 2021 to 14 December 2023.

Comment

Clive Carver, non-executive chairman said

"We continue to make good progress developing the proven shallow structures at the BNG Contract Area, which with the continuing relatively strong international oil price is providing the funding to allow the completion of the deep well programme required under the BNG work programme.

Production volumes form the shallow structures are expected to increase in the near future as the export licence is received for the shallow South Yelemes structure and we continue to redrill existing wells using the horizontal techniques that are proving so successful.

We also look forward to the results from the perforation at Deep Well A8."

Contacts:

Caspian Sunrise PLC

Clive Carver

Chairman                                                                                +7 727 375 0202

WH Ireland, Nominated Adviser & Broker

James Joyce                                                                            +44 (0) 207 220 1666

Andrew de Andrade

Qualified person

Mr. Assylbek Umbetov, a member Association of Petroleum Engineers, 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.