TIDMCASP
RNS Number : 4206N
Caspian Sunrise plc
09 May 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.
Deep Wells
As previously reported we got off to a slow start in January and
February following a prolonged period of exceptionally cold weather
when little meaningful work was possible on our deep wells, A5, 801
and A6.
Deep Well A5
This well had been on a 90-day flow test at the end of Q4 2017
with flow rates reaching 3,800 bopd using a 16mm choke. Blockages
in the well led us to reduce the choke size to 6mm and flow rates
fell to some 1,000 bopd.
To maximise the results of the flow test and supply the best
information on which to calculate reserves we decided to suspend
the flow test and clean out the well.
The cheapest and potentially quickest way to accomplish this was
by use of coil tubing equipment. However, after considerable time
and effort was expended we decided coil tubing was unlikely to
produce the outcome desired. Accordingly, the coil tubing operation
has been discontinued.
A rig has been mobilised to remove the entire tubing string from
the well. This is a more expensive but more certain solution but
one that would have been difficult to use earlier in the year in
the extreme low temperatures.
Pressure in the well remains high at 300 bar at the wellhead,
which suggests there is still good communication throughout the
length of the well.
Our expectation is that, if successful, the well could be
flowing and be ready to be put back on a new 90-day test.
Deep Well 801
As previously announced our plan to bring Deep Well 801 into
production was by drilling a side track of between 450 - 500 meters
from a starting depth of 4,501 meters. After weather delays and
initial difficulties in drilling through the metal pipes and casing
the recent progress of the side track has been encouraging.
To date we have drilled 132 meters of the total but expect to
increase significantly the pace of drilling such that we would
reach total depth in Q2 2018, following which this well would also
be ready for a 90-day flow test.
As with well A5 the pressure in Well 801 remain high.
Deep Well A6
Our plan with Deep well A6 remains to re-perforate the well
using more powerful explosive charges.
The drill pipes to be used in this operation are currently in
use at Deep Well 801 and work at Deep well A6 will not commence
until the pipes at Deep Well 801 are released.
Shallow wells
MJF
We continue to produce from 4 of the six wells drilled at the
MJF structure. The aggregate production from wells 141, 143, 144
& 145 has over the past three months averaged 1,900 bopd.
The issue at wells 142 and 146 is the proportion of water
produced with the oil. We intend to engage a leading international
contractor to isolate the water from both wells so that they might
each produce at the rate of some 200 bopd.
The Company's management consider the probability of success at
Well 142 high as it has already demonstrated that it is capable of
sustained production at economic rates.
Soviet Era wells
As previously reported, in July 2017 well 54 was successfully
re- completed.
The previous average daily oil production from sandstone of the
middle Jurassic was some 90 bopd. In addition wells 805, 806 &
807 also had a combined production rate of 110 bopd form the same
Jurassic sandstone intervals.
Examination of the core and logs from these wells indicates that
although individual production zones are relatively thin at c 5
meters, the potential for multiple pay intervals, high reservoir
quality and high oil saturation makes these potentially good
reservoirs to consider for exploration by horizontal drilling.
In additional to the known Jurassic sandstone reservoirs
additional prospectivity exists with a thin (10 meter) but
laterally extensive dolomite interval within the late Jurassic
sandstone section.
A pilot study to test the viability of horizontal drill
programme to produce from these intervals is planned to begin in
2019.
Move to full production licence
As previously announced we are able from 1 July 2018 to apply to
move individual structures to a full production licence under which
we would expect to double the price achieved per barrel for oil
produced.
The MJF structure will be the first of the BNG structures to
apply for full production status. Recent changes to Kazakh
regulations have abolished the bonus payment typically made to the
state on such a move, which is likely to save some $6 million.
Comment
Clive Carver, Chairman said:
"Progress in Q1 2018 was slow, partly through weather related
delays and partly through equipment failures. Encouragingly
progress in Q2 has picked up so that we have expectations of the
blockages currently in Deep Wells A5 and 801 being cleared to allow
90-day flow tests to resume later in Q2.
Production at our shallow wells continues to fund the bulk of
our day to day work at BNG where the price derived per barrel is
set to double from Q3 2018."
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
UPDZMGGKVRFGRZM
(END) Dow Jones Newswires
May 09, 2018 02:01 ET (06:01 GMT)
Caspian Sunrise (LSE:CASP)
Historical Stock Chart
From Apr 2024 to May 2024
Caspian Sunrise (LSE:CASP)
Historical Stock Chart
From May 2023 to May 2024