Proactive Investors - Run By Investors For Investors

Caspian Sunrise soars after delivering long awaited deep well success

The deep A5 well tested at a rate of 3,500 bopd before the programme was paused to bring in high pressure equipment
onshore drilling operation
The AIM-quoted share shot up around 60% in Monday morning’s deal, changing hands above 14p.

With news from the deep A5 well in Kazakhstan, Caspian Sunrise Plc (LON:CASP) on Monday delivered the result that investors "have been waiting for" that’s according to stockbroker WH Ireland.

Caspian Sunrise said in a statement that the A5 well had yielded a rate of 3,500 barrels of oil per day in testing. The well was tested for 4 hours before being shut-in pending further testing with high-pressure equipment.

READ: Kazakhstan-focused oilfield developer Caspian Sunrise may have discovered third shallow oil structure

The AIM-quoted share shot up around 60% at just over 14p in Monday morning deals.

WH Ireland analyst Brendan Long, in a note, highlighted that pressure dynamics information suggests ‘excellent fluid communication’ between the A5 well and a ‘highly productive reservoir’.

“This is the moment we were waiting for and the production result materially exceeds the success case guidance of 2,000 b/d previously provided by the company,” Long said.

READ: Kazakhstan-focused oiler Caspian Sunrise is sitting on "something special", says chairman

He added: “Since relaunching itself under the name Caspian Sunrise, pursuant to a merger with Baverstock to consolidate a 99% operated interest in the BNG licence, the company has been on a tremendous growth trajectory in terms of the creation of shareholder value.”

WH Ireland this morning repeated a ‘buy’ recommendation and upgraded its price target to 28.6p per share from 22.2p, implying almost further 100% upside to Monday’s newly elevated price of around 14p.

View full CASP profile View Profile

Caspian Sunrise Timeline

Related Articles

July 24 2018
The company is focused in the Wheatland and Princess in Southern Alberta, where it is targeting the Lower Mannville formation
Oil well
February 13 2019
TLP-103C’s upper reservoirs will be targeted by blending the R2 and the Mengo intervals through a double completion in the well.
oil rig
May 22 2019
Sidetrack at West Rutavi 16a flowed at 1,100 barrels per day against target of 650bopd for two wells

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use