(Alliance News) - Caspian Sunrise PLC said Wednesday that deep well A5 at Airshagyl structure in BNG contract area, western Kazakhstan, has been producing oil without interruption since December 31.
The pressure in the well is strong and is being maintained at a near constant level by adjusting the choke size, the Kazakhstan-focused oil & gas firm said.
Based on the activity to date, the company believes the well should be capable of producing at least 1,500 barrels of oil per day.
The company said it has already started to sell oil produced from deep well A5 at domestic prices, as allowed under the terms of the BNG licence.
Following the success at deep well A5, the company said it is keen to press on with further drilling. It intends to spud deep well A9 in the first half of 2020 which, if successful, would extend the perimeter of the Airshagyl structure.
Caspian Sunrise said that six new shallow wells on the MJF structure have been prepared for drilling, with well 150 anticipated to commence production by the end of February.
Total number of barrels produced in December 2019 was 43,498 compared to 41,682 barrels in November, the company said.
The export price achieved in December before adjustment for subsequent minor variations, was USD59.6 per barrel compared to USD55 in November. Meanwhile domestic price was USD18 per barrel compared to USD19 per barrel in November, the company noted.
Clive Carver, executive chair said: "With ten days now of constant flow at deep well A5, the likelihood of well blockages from excess drilling fluids is receding."
"While it may be some time before we settle on the optimum production rate for the well it now seems clear it is capable of producing at a rate of at least 1,500 barrels of oil per day, a rate greater than the current MJF production from the six existing wells," Carver said.
Caspian Sunrise shares were down 1.5% in London at 9.70 pence each on Wednesday afternoon.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Caspian Sunrise (CASP)