(Alliance News) - Caspian Sunrise PLC on Monday said New Well 153 at its BNG asset in Kazakhstan is producing more than 500 barrels of oil per day, matching New Well 150's production.
As a result of this, total daily production is now more than 2,000 barrels of oil per day and could rise to 2,300 barrels once the licence upgrade is approved. Such an upgrade would allow for a return to full production at the South Yelemes shallow structure.
On March 18, Caspian suspended all operational drill activity after completion of work then in hand. Going forward, it has opted to pursue development of the shallow and deep structures within the BNG contract area "on a controlled basis".
Given this, the rig currently at New Well 153 is to move to Deep Well A5 so that cracked tubing can be replaced and work to bring the well into production can continue.
Another rig has already move to the third infill drilling site within the MJF structure to drill New Well 151, which has been spudded and so far reached a depth of 12 metres.
Caspian said is has agreed short term salary and fee reductions in response to Covid-19, having already cut staff and suspended some work in March. As a consequence, Caspian's monthly cash outlay is now only a quarter of pre Covid-19 contracted levels.
"As a result of the actions noted above the board believes the group is now well placed to come through the current Covid-19 related difficulties in good shape," said Caspian.
The company also said it will be appointing Aibek Oraziman, its largest individual shareholder, as a non-executive director. Oraziman holds an 18.8% stake in Caspian and is a members of Caspian's largest shareholding group, the Oraziman family, which owns a 42.9% interest.
Executive Chair Clive Carver said: "The progress at New Well 153 is pleasing as is the resumption of our shallow and deep structure drilling campaigns, albeit at a controlled pace.
"The financial measures put in place demonstrates the commitment and confidence of the board, our largest shareholding group and the local oil traders in the company's medium and long term prospects.
"We look forward to welcoming Aibek Oraziman to the board in the near future."
Shares in Capian Sunrise ended 7.1% higher at 3.38 pence in London on Monday.
By Anna Farley; annafarley@alliancenews.com
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Caspian Sunrise (CASP)