TIDMCASP
RNS Number : 8845K
Caspian Sunrise plc
27 April 2020
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG Operational update
Introduction
The board is pleased to announce that New Well 153 has commenced
production.
Background
Well 153, was the second of the MJF Phase 1 production wells
drilled. It was spudded in mid-February 2020, and reached `Total
Depth' of 2,503 meters in early April 2020.
Recently the first of several prospective oil bearing intervals
in the well was perforated. This 3.5 meter interval between depths
of 2,232.0 and 2,235.5 meters had an initial production rate of
approximately 350 bopd using a 6 mm choke. Currently the well is
producing about 200 bopd as work continues to establish an optimal
long term flowrate from this interval.
New Well 150, the first of the infill wells drilled on the MJF
structure continues to produce around 500 bopd.
New Well 153 demonstrates the relatively straightforward wins
available from our shallow structures. With multiple proven
productive horizons in each well risk of a dry and/or uneconomic
well is considered to be very low.
Increased aggregate production
With New Well 153 adding approximately 200 bopd our total
average daily production has increased to approximately 1,700 bopd
bringing total production capacity from existing wells to
approximately 2,000 bopd.
Other matters
On 18 March 2020, we announced the shift in focus of our deep
drilling campaign away from Deep Well A5, which required a rig
movement, and that we would instead conduct planned acid treatments
at Deep Wells A6, 801 & A8 using the crews currently in the
field.
The closure of international borders and the additional closure
of many of the main roads in the Mangistau region of Kazakh, where
BNG is located, has prevented the acid required reaching the BNG
Contract Area. It has also prevented the crew in the field from
leaving.
We have therefore redeployed our resources as follows:
New Well 151
A G40 rig is being moved into position to drill New Well 151,
which would be the third new well of the current MJF infill
campaign. We own the rig and in any event are paying the crews so
the additional costs should we commence drilling would be confined
to principally the casing costs and the costs of the third party
contractors involved in perforating and bringing the well into
production.
Deep Well A5
Introduction
Our G50 rig is being mobilised at Deep Well A5 to pull out and
replaced a cracked link in the tubing.
Work will then resume to allow the well to produce at rates
expected from a Deep Well, rather than the amounts produced towards
the end of the 40 day flow test at the start of the year.
Background
Deep Well A5, was the first deep well drilled on the BNG
Contract Area. It was drilled to a depth of 4,442 meters and in
2017 flowed for 15 days at a rate of approximately 3,800 bopd.
Earlier this year, following three attempts at a side-track, the
well again flowed, initially at a rate of 1,000 bopd but quickly
declined to approximately 100 bopd. Nevertheless the well flowed
without stimulation over a continuous 40 day period before it was
closed.
Expectations
As previously announced, we still believe the well is capable of
flowing at a rate of approximately 1,500 bopd. Our work programme,
if successful, should allow us to test that belief by the end of
June 2020.
As with New Well 151, we own the rig and are already paying the
crews so the additional costs are limited.
Ends
Comments:
Clive Carver, Executive Chairman said
"The second successful New Well on the MJF is a boost and takes
aggregate production capacity to approximately 2,000 bopd.
Being close to events, owning our own rigs and having them on
site has allowed us to respond quickly to the changing situation on
the ground.
This allows the Company to continue to pursue our twin track
approach of seeking relatively straight forward wins in our shallow
structures while also going for the higher risk / higher impact
successes at our Deep Wells.
As soon as the acid required for the treatments planned at deep
Wells A6, 801 and A8 arrives we will resume our planned operations
there, which do not require rig movements."
Caspian Sunrise PLC
Clive Carver
Executive Chairman +7 727 375 0202
WH Ireland, Nominated Adviser & Broker
James Joyce +44 (0) 207 220 1666
James Sinclair-Ford
Qualified person
Mr. Timothy Dulaney, one of Caspian Sunrise PLC's Geologist's
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.
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END
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