Caspian Sunrise plc Operational Update (0654I)
19 March 2018 - 6:01PM
UK Regulatory
TIDMCASP
RNS Number : 0654I
Caspian Sunrise plc
19 March 2018
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
Operational update
Introduction
Caspian Sunrise the Central Asian oil and gas company, with a
focus on Kazakhstan, is pleased to update the market with news at
the BNG Contract Area of progress at its Deep and Shallow
Wells.
Weather update
Normal operations have resumed following follow the previously
announced, delays caused by exceptionally cold weather over the
period December 2017 until February 2018.
Deep Wells
Deep Well A5
As previously announced, our first deep well A5 flowed for 15
days prior to the formal 90-day flow test at a rate of 3,800 bopd
using a 10mm choke and after a partial blockage at the rate of
approximately 1,000 bopd again with a 10mm choke.
The test was suspended to deal with the partial blockage so that
the best possible results are obtained in order to maximise reserve
estimates.
The well was completed open hole with an open ended
pre-perforated liner which became obstructed when carbonate rock
fragments were transported into the liner due to the high pressures
experienced in the well.
Following unsuccessful attempts to clear the obstructions using
readily available equipment,a contractor with more specialised coil
tubing equipment was mobilized.
The permitting required to begin coil tubing operations is
expected to be finalized before the end of March and then, subject
to clearing the obstruction, we would resume the 90-day flow
test.
Deep Well 801
After extensive preparatory work we are pleased to report that
the planned side-track at Deep Well 801 from a depth of 4,516
meters is underway.
The existing pipe is being milled to create a hole in the casing
to allow the side-track drilling to commence. The total length of
side-track is planned at 445 meters.
Provided the side-track operation is successful, the well would
be placed on a 90-day flow test. Pressure levels in the well remain
encouraging suggesting good pressure communication between the
wellbore and the open formation at depth.
Deep Well A6
As previously reported, work to get this well to flow to allow
extended testing is dependent upon re-deploying drill pipes from
from Deep Well 801.
Deep Well A8
Given the adverse weather for much of Q1 the spudding of new
Deep Well A8 has been rescheduled for Q2 2018. Top hole
preparations are ongoing and the well has been sited 750 meters
from Deep Well A5 making it in the opinion of the Company's
management highly promising given the results to date from Deep
Well A5.
Shallow Wells
MJF Structure
Well 146
Well 146 is the sixth well to be drilled on the MJF
structure.
The well is near the regional bounding fault which forms the
eastern boundary of the field. The location of this well was
largely determined by the need to drill across the MJF structure to
qualify to move the whole MJF structure onto a full production
basis following the expected licence renewal on 1 July 2018.
Initial testing shows production from well 146 to be more
challenging than previous MJF wells. Unlike wells 141, 142, 143,
144 and 145, we believe it will be necessary to use artificial lift
equipment to maximise the flow of oil to the surface.
A beam-pump/sucker-rod lift system is being installed. Once
operational we expect to obtain reliable flow rate information.
Once flow results from Well 146 are known, results from this and
other wells will be used to revise the reservoir
interpretation.
Gaffney Cline and Associates will then work with Caspian Sunrise
to update reserve estimates.
Well 142
Well 142 is the most northern well drilled to date on the MJF
structure. Production at this well has ceased following a workover
designed to increase flow rates. Once the flow rates from well 146
are clear then a decision will be taken as how to proceed at well
142.
Clive Carver, Executive Chairman, Caspian Sunrise comments:
"Following the weather delays previously reported we have now
resumed work at both A5 and 801. Management remains encouraged by
the initial flow rate at A5 and the pressure and flows to the
surface under natural pressure at Deep Well 801 providing
confidence for hoped for positive outcomes for these wells."
Ends
Caspian Sunrise PLC
Clive Carver
Executive Chairman +7 727 375 0202
WH Ireland, Nominated Adviser &
Broker
James Joyce
Jessica Cave
James Sinclair-Ford +44 (0) 207 220 1666
Yellow Jersey PR
Tim Thompson
Henry Wilkinson +44 (0) 203 735 8825
Qualified Person
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.
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 company news service from the London Stock Exchange
END
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