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(Alliance News) - Oil & gas firm Caspian Sunrise PLC said Wednesday it has signed a contract for the first international sale of oil from the MJF structure in the BNG contract area in Kazakhstan.
The contract was signed with an unnamed international trading group for the first 29,000 barrels of oil to be sold in September, with the price fixed on loading by reference to the prevailing Brent oil price.
Caspian said it expects to receive double the amount the oil would have sold for in the domestic market.
In addition, work has started to prepare the ground for the first four of the planned infill wells at the MJF structure.
As for the deep wells in the area, Caspian has completed the preparatory work for the planned 500 metre side-track at well A5, which will be at a depth of 3,976 metres and is set to be completed by the end of September.
Meanwhile, the A8 deep well is the third deep well being drilled on the Airshagyl structure.
Caspian has agreed with its drilling contractor partner Sinopec to stop drilling the well at the current depth of 4,520 metres, and instead perforate the well across a 40 metre zone in the 52.5 metre interval of the highest prospectivity.
Caspian has previously referred to the existence of a 159-metre carbonate interval, from a depth of 4,342 metres of which 52.5 metres is of porous oil bearing rock.
As for the other deep wells, Caspian said it plans to use acid technology for deep wells A6 and 801. However before this can be done, the company will need to source more powerful coil tubing equipment to clear the wells.
However, the work at well A6 require drilling and drill pipes which are currently in use on A5, which will not be available until the end of September. As a result, acid treatment work on A6 and 801 is expected to take place in October.
"Our first international sale of oil is another milestone in the development of the BNG contract area. We look forward to reporting on the developments at Deep Wells A5 and A8, both of which could be on a 90-day flow test before the end of the current quarter," said Executive Chair Clive Carver.
Shares in Caspian Sunrise were up 5.0% at 8.82 pence on Wednesday in London.
