(Alliance News) - Caspian Sunrise PLC shares were sharply higher on Thursday after the firm said deep well A5 at its Airshagyl structure at BNG, western Kazakhstan has been flowing without artificial stimulation for four days.
The Kazakhstan focused oil and gas firm's shares were up 22% in morning trade in London at 9.54 pence each.
The well has been drilled to a total depth of 4,405 metres, Caspian said, and it now producing oil without interruption.
Production is estimated to have steadily increased to a rate of 1,500 barrels of oil per day, with further increases expected.
Caspian said: "While it is still too soon to predict with certainty the level at which A5 might produce on a consistent basis the current rate of production more than doubles at a single stroke the company's total production from its successful MJF wells. Work continues on the three other deep wells already drilled with the intention of bringing them into production in due course."
"This is the result we have been working to achieve for a long time," Executive Chair Clive Carver added.
He continued: "While we need to be careful not to get over excited, as it is possible the continuous flows exhibited over the past four days might be interrupted or reduced as happened before, the strength of the flows and the uninterrupted three-day period lead are extremely encouraging.
"They lead the company's management to believe deep well A5 will be a mainstay of the production expected over the coming years from the large quantities of deep oil believed to be present on the Airshagyl structure."
Caspian plans a 90 day flow test of the well, which will help quantify the reserves at Airshagyl.
By Paul McGowan; paulmcgowan@alliancenews.com
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Caspian Sunrise (CASP)