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Operational Update and BNG production numbers

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RNS Number : 4482S
Caspian Sunrise plc
06 November 2019
 

 

Caspian Sunrise PLC

 

("Caspian Sunrise" or the "Company")

 

Operational update incorporating BNG Monthly production numbers

 

The Board of Caspian Sunrise is pleased to announce an increase in its monthly production numbers and to provide an update on the operations at its flagship asset BNG.

 

October production numbers

 

The Board is pleased to report another increase in monthly production, principally due to the result of the workover on certain existing shallow wells on BNG.

 

During October 2019, a total of 43,415 barrels of oil were produced (40,828 September 2019), of which half were sold at domestic prices (one third in September 2019) and (half were sold by reference to international prices (two thirds September 2019). The production per day rose 6.3% to 1,447 barrels (September 2019, 1,361 barrels), having risen 15.5% the previous month.

 

Oil sold at domestic prices achieved $19.5 per barrel (September 2019, $20.5 per barrel) and the gross price for the international sales, before small adjustments (up or down) yet to be quantified and calculated by reference to actual Brent prices on the day of sale, was $55.0 per barrel (September 2019 $55.5).

 

 

BNG  Deep Well Wells

 

As previously announced each of the four deep wells drilled to date is expected to have the chance to commence 90 day flow test over the forthcoming period.

 

Deep Well A5

 

Work is progressing well on the 500 meter side track, which commenced at a depth of 3,976 meters.  Drilling has now reached a depth of 4,324 meters, after a pause to broaden the well bore, all without incident.

 

A final decision on when to stop drilling will be made on the basis of the technical information being recovered during the drilling work. However, based on the information gathered to date we believe the Total Depth will now be around 4,450 meters.

 

Baker Hughes, who had been scheduled to undertake the final cementing in October, are now expected to perform this work in late November, following which we would seek to perforate the well over an initial single interval of 50 meters.

 

Deep Wells A8, A6 & 801

 

Deep Wells A8, A6 & 801 are now all set to use acid treatment to stimulate oil flows. The acid and related equipment are on site.

 

Deep Well A8

 

Deep Well A8 is the third deep well drilled on the Airshagyl structure and the fourth deep well in total on the BNG Contract Area.  Previous announcements referred to the existence of a 159 meter carbonate interval, of which 52.5 meters is of porous oil-bearing rock from a depth of 4,342 meters.

 

The well was spudded with an intended Total Depth of 5,300 meters, but in conjunction with our drilling partners, Sinopec, we decided to seek to exploit the interval already identified in drilling to a depth of 4,520 meters. Accordingly, as also previously announced, the well was perforated across a 47 meters interval following which, encouragingly,  strong gas and oil shows were detected.

 

Work to clean the well is progressing satisfactorily, with periodic oil flows to the surface.  Work has recently paused pending the arrival of additional coil tubing equipment.

 

Deep Well A6

 

Our plan is to stimulate the well by the use of acid under high pressure.

 

Deep Well 801

 

Well 801 will receive essentially the same treatment as Deep Well 6 following completion of the work there.

 

MJF drilling infill campaign

 

As previously announced we have embarked on an 18 well infill drilling campaign targeting the end of 2022 to have in total 24 operational wells on the MJF structure with the capacity to produce at the rate of approximately 8,000 bopd.

 

Two G40 rigs, recently purchased as part of a wider equipment purchase, will be dedicated to drilling these 18 infill wells.  We have commissioned preparatory ground works at 6 selected drill sites in an attempt to prevent winter weather related delays.

 

The first of the 18 infill wells, well 150 was due to spud in early October, however the work required to prepare the rigs and associated equipment for winter conditions has delayed commencement, which is now planned for mid-November 2019.

 

Whilst we may not have three additional wells ready to produce by the end of 2019, we believe we should still be able to meet our end of 2020 targets.

 

 

Ends

 

Caspian Sunrise PLC

 

Clive Carver

Executive Chairman                            +7 727 375 0202

 

WH Ireland, Nominated Adviser &

Broker

 

James Joyce                                        +44 (0) 207 220 1666

James Sinclair-Ford

 

Qualified Person

 

Mr. Nurlybek Ospanov, 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.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Caspian Sunrise

Price: 8.75

Market: AIM
Market Cap: £164.73 m
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