Caspian Sunrise PLC (AIM:CASP) shares started Monday strongly after the firm told investors that oil is flowing in its side-track to Deep Well 802, in western Kazakhstan, at a rate of between 700 and 900 barrels of oil per day (bopd).
The company, in a statement, noted that the side-track still had 100 metres left to drill nevertheless after encountering a strong flow of gas the well began producing oil, with the rates to date coming in ‘open hole’ conditions.
Contractor Baker Hughes is working to stabilise the well and once completed it will be further perforated, which potentially will result in higher flow rates, the company added.
Output from the well is expected to increase current production rates from the BNG contract area to over 3,000 bopd, Caspian Sunrise said.
The side-track was drilled after the original DW802 well, the sixth deep well to be drilled in the BNG area, encountered oil sooner than expected, before the well had been completed.
It is positioned in a location close to a ‘Soviet era blowout’, the company noted.
In London, Caspian Sunrise shares gained around 14% to trade at 5.9p each.