BNG Operational Update and Production Numbers
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG Operational Update and monthly production numbers
The Board of Caspian Sunrise is pleased to provide an operational update at its flagship BNG Contract Area.
First export licence sales from MJF
We are pleased to confirm that a contract has been signed with an international oil trading group for the first 29,000 barrels of oil to be sold in September, by reference to world oil prices. The price will be fixed on loading by reference to the prevailing Brent oil price. We expect to receive approximately double the amount the oil would have sold for on the domestic market.
Additionally, work has commenced to prepare the ground for the first four of the planned 10 infill wells at the MJF structure.
We are pleased to announce that the preparatory work for the planned side-track has been completed and that the 500 meter side-track is now underway from a depth of 3,976 meters.
We expect the side-track to be completed by the end of September 2019, at which point we would look to perforate the well.
Deep Well A8, is the third deep well drilled on the Airshagyl structure. We have in previous announcements referred to the existence of a 159-meter carbonate interval, from a depth of 4,342 meters, of which 52.5 meters is of porous oil-bearing rock.
We have agreed with our drilling contractor partner, Sinopec, to stop drilling the well at the current depth of 4,520 meters and to perforate the well across a 40-meter zone in the 52.5-meter interval of highest prospectivity.
Preparations are well underway and barring regulatory delays we anticipate the perforation exercise will take place in the next few weeks.
Our other Deep Wells
As previously announced, we intend to use acid technology new to the Company at Deep Wells A6 and 801. Economies of scale dictate it is best to conduct this work at both wells at the same time. However, before we can commence work, we need to source more powerful coil tubing equipment to clear the wells.
In any event, as the work at Deep Well A6 requires drilling mud and drill pipes allocated to Deep Well A5, which we do not expect to become free until the end of September 2019, and that the acid treatment does not require a rig, we have released the rig previously erected over Deep Well A6, to commence the 10 well infill drilling plan at the MJF structure.
We expect the acid treatment work at Deep Wells A6 and 801 to commence in October 2019.
Clive Carver, Executive Chairman said
"Our first international sale of oil is another milestone in the development of the BNG Contrract Area.
We look forward to reporting on the developments at Deep Wells A5 & A8, both of which could be on a 90-day flow test before the end of the current quarter."
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
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.
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