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LONDON (Alliance News) - Caspian Sunrise PLC said Wednesday it is "pleased" with the steady progress it is making at its flagship BNG contract area in Kazakhstan.
At the A5 deep well, Caspian reported that previous attempts to clear the well may have resulted in damage to the tubing and casing. The company said it will clean the remaining 147 metres, having reached a depth of 4,238 metres, and will evaluate the condition of the existing tubing.
Caspian said it still expects to start the long-term flow test before the end of March at the well.
At deep well 801, annular pressure has "stabilised", with Caspian planning to stimulate the well by hydraulic pressure injection before starting a full flow test.
Work at deep well A6 is still currently suspended as the company focuses on wells A5 and 801.
Caspian said the work at its latest deep well, A8, is "encouraging", having drilled to a depth of 3,900 metres with the next planned casing point expected at about 4,400 metres.
The company's production from its shallow wells for February was 42,913 barrels, or 1,533 barrels of oil per day, sold at an average of USD20.50 per barrel.
Compared to January, daily production was 54 barrels of oil per day higher but total monthly production was down 2,928 barrels.
Caspian is still waiting for its MJF structure's full production status to be approved by the Kazakh authorities, allowing to sell oil at the world price instead of local prices. The world price is currently double the domestic price.
The company said the decision was delayed due to "anticipated changes within the Kazakh government", but now that this has been finalised, Caspian expects the licence upgrade to become effective without further administrative delay.
"While it is pleasing to report steady rather than dramatic progress we remain focused on getting our deep wells to flow as soon as practicable. In the meantime and while we wait for the MJF licence upgrade the income from our existing production, even at domestic prices, together with periodic advances from local oil traders continues to fund our operations," said Chair Clive Carver.
Shares in Caspian Sunrise were down 4.2% Wednesday at 5.795 pence each.
