Caspian Sunrise plc BNG Operational Update (2652G)
05 November 2018 - 6:00PM
UK Regulatory
TIDMCASP
RNS Number : 2652G
Caspian Sunrise plc
05 November 2018
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG operational update
The Board of Caspian Sunrise are pleased to provide the
following update.
BNG
Shallow Wells
Production levels
Total oil production in October 2018 from the 5 wells
operational in the MJF structure and the 4 wells in the South
Elemes structure was 54,348 barrels (average of 1,753 bopd).
Completed workovers
The remedial work completed at the start of October 2018 has
resulted in Well 142 returning to production at the rate of
approximately 90 bopd, with only 1-2% water content, using a 5mm
choke.
Active workovers
Well 146 is currently undergoing workover operations using a
similar approach to that successfully used in restoring production
to wells 143 and 142
Planned workovers
At Well 808, on a potential new structure, the preparatory work
to reperforate and test is now complete. The procurement of the
required tubing has commenced and work is set to start once the
workover rig now in use at Well 146 becomes available.
Move to full production status
The planned move of the MJF structure to full production status
is expected to become effective in 1Q 2019. Of the 54,348 barrels
of oil produced in October 2018, 46,946 barrels were from the MJF
structure. Under our existing license this production must be sold
by reference to domestic prices. In recent months the Company
achieved approximately $16 per barrel net of all costs for domestic
sales.
Our expectation is that following the move to full production
status the price achievable on export sales net of all taxes and
production related costs will be of the order of $35 - $40 per
barrel.
We have also identified the site for new shallow production Well
147 to be drilled on the MJF structure shortly after the receipt of
the MJF structure's full production status.
Deep Wells
Deep Well A5
Deep Well A5 Sidetrack-2 (A5 ST-2) has a total depth of 4,450
meters. The pre-salt carbonate reservoir is perforated over a 105
meter interval (4,332 to 4,437 meters). Milling operations to
remove a metal obstruction in the well continue to progress at a
current depth of 4,054 meters.
As previously announced, for the 15 days between 23 October and
27 November 2017 prior to the formal start of 90 day testing, the
well flowed at the rate of approximately 3,800 bopd before being
restricted by a partial blockage. Our intention is to restart the
90-day flow test once wellbore is clear of obstructions.
Deep Well 801
The pressure build-up in Deep well 801 since Caspian's last
update has been steady, exceeding the Company's initial
expectations, and now stands at approximately 360 ATM (5292 psi).
Procurement of services are underway for re-perforation and acid
fracture jobs to be followed by a 90-day flow test.
Deep Well A6
As previously announced, the Company continues to work on a
detailed recompletion plan while waiting for equipment in use at A5
and 801 to become available.
New Contract for up to a further 3 deep wells
The Company has entered into a contract with a leading
international drilling company for up to three new deep wells, A8,
A9 & A10. Under the contract the leading international drilling
company will be responsible for the first phase of drilling with
Caspian Sunrise taking over for the more complicated final phase
through the salt layer and the high pressure and high temperature
zones expected below the salt layer, until the well reaches total
depth.
The Company has decided to enter into this arrangement in order
to take advantage of the relatively low market rates for the
typically straight forward drilling down to the salt layerand then
further utilise the Company's knowledge of sub-salt drilling from
the experience gained in the three previous BNG deep wells (A5, A6
& 801).
The first well to be drilled under this contract, Deep Well A8,
is planned to spud during November and to a planned Total depth of
5,300 meters. The well is located approximately 1 km up structure
from Deep Well A5 and will target the same pre-salt carbonates that
were successfully identified in the Deep Well A5. We also plan to
evaluate deeper carbonate targets of Devonian to Mississippian
ages.
The first 4,100 meters of the well will be drilled by our
international partner with the final 1,200 meters to be drilled by
Caspian Sunrise, using local contractors.
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. Nurlybek Ospanov, 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.
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 announcement has been posted to:
www.caspiansunrise.com/investors
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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