Caspian Sunrise Share News (CASP)

LONDON (Alliance News) - Central Asian oil and gas company Caspian Sunrise PLC said on Monday its operations at BNG Contract Area in Kazakhstan have resumed after delays caused by cold weather.

Caspian Sunrise shares were down 25% at 10.00 pence per share on Monday.

Within the contract area, Deep Well A5 has been suspended to deal with a partial blockage so that the best possible results are obtained to maximise reserve estimates. Following unsuccessful attempts to clear the obstructions using readily available equipment, a contractor with more specialised coil tubing equipment was mobilized, Caspian said.

The permitting required to begin coil tubing operations is expected to be finalized before the end of March and then, subject to clearing the obstruction, company will resume the 90-day flow test.

Also a side-track at Deep Well 801, from a depth of of 4,516 meters, is underway, company said on Monday. Provided the side-track operation is successful, the well will be placed on a 90-day flow test.

Pressure levels in the well remain encouraging, suggesting good pressure communication between the wellbore and the open formation at depth, as Caspian Sunrise said.

"Following the weather delays previously reported we have now resumed work at both A5 and 801. Management remains encouraged by the initial flow rate at A5 and the pressure and flows to the surface under natural pressure at Deep Well 801 providing confidence for hoped for positive outcomes for these wells", commented Executive Chairman Clive Carver.

Also in the BNG Contract Area, at Deep Well A6, work to get this well to flow to allow extended testing is dependent upon re-deploying drill pipes from Deep Well 801.

Furthermore, given poor weather for much of first quarter the spudding of new Deep Well A8 has been rescheduled for second quarter of 2018 while Well 146 is the sixth well to be drilled on the MJF structure.

The well is near the regional bounding fault which forms the eastern boundary of the field and the location of the well was largely determined by the need to drill across the MJF structure to qualify to move the whole MJF structure onto a full production basis following an expected licence renewal in July.

Lastly, Well 142 is the most northern well drilled to date on the MJF structure. Production at this well has ceased following a workover designed to increase flow rates. Once the flow rates from well 146 are clear then a decision will be taken as how to proceed at well 142, Caspian said.