LONDON (Alliance News) - Caspian Sunrise PLC on Friday said its loss narrowed slightly in 2018 following double-digit growth in revenue and a sharp reduction in operating expenses.
In addition, the oil & gas company said two core samples taken from Deep Well A8 on the Airshagyl structure at its flagship BNG contract area in western Kazakhstan, have undergone preliminary analysis that shows them to be porous and oil-and-gas bearing.
Deep Well A8 was spudded in November 2018 with a target total depth of 5,300 meters and with two principal targets. The first in the Carboniferous and the second in the Devonian. The well has now reached a depth of 4,379 metres, Caspian said.
A four-meter core sample was taken at a depth of 4,342 meters and a further nine meter core sample was taken at a depth of 4,370 meters. Caspian said it believes the A8 well has intersected at least 37 meters of gross oil bearing reservoir.
Looking forward, the company said further drilling and core samples will be taken with a view to establishing the full extent of the depth of the horizon.
"It is obviously pleasing to have further confirmation of the potential of the Airshagyl structure, and we look forward to establishing the full extent of the horizon," said Executive Chair Clive Carver.
Turning back to the results, Caspian said revenue increased by 41% in 2018 to USD10.7 million from USD7.6 million, citing a greater quantity of oil sold despite lower production.
Administrative costs fell 11% to USD2.6 million from USD3.4 million in 2017, resulting in a reduced pretax loss of GBP3.0 million compared to USD3.5 million.
Daily production was 1,903 barrels equivalent a day, down from 2,208 bopd the year before, which reflects the company's decision to use smaller choke settings to prolong the productive life of the wells. In addition, production from some wells was suspended to allow workovers and the testing of different intervals.
Caspian Sunrise shares were trading 4.9% higher on Friday at 9.60 pence each.
Caspian Sunrise (CASP)