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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.

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