WHIreland Comment9 May 2019 13:50
Caspian Sunrise (CASP) – Corporate – Operational Update
Market Cap £89m Share Price 4.9p
Caspian Sunrise provided an operational update as follows.
The company indicated the deep A8 well has drilled to depth of 4,391 meters, with a target depth of 5,300 meters. Early indications from cuttings suggest the structure is oil bearing, as expected. Based partly on this result the company believes that the structure may extend across 58 square km. Total depth is expected to be reached in Q3 2019.
The company has decided to drill a new sidetrack at the A5 well from a depth of at least 3,850m. Discussions with potential contractors has commenced and the company expects to complete the new side-track approximately two months after works commence.
At the 801 well the company stated that it has received a technical review from a leading international consultant that confirmed the company’s plan to conduct a pressurised acid treatment of the well. Work is expected to commence in May.
In respect of the A6 well, after receiving advice from an international consultancy with expertise in high-pressure / high-temperature reservoirs, the company has reformulated a work programme. The company intends to re-cement the lower portion of the well to isolate water encroachment from below. After completing the cement operation, the company intends to reperforate the most prospective section (4,479-4,489m) with additional reperforations possible. The company expects to complete the reperforation work in May.
Drilling results at the New Structure from Well 808 have been inconclusive indicating oil bearing intervals have high water saturations. The well was recently completed to test two lower zones. Wireline results indicate that two additional shallower untested zones have commercial potential.
The company announced it produced 1,471 b/d in April, unchanged from March (1,471b/d). The average realised price over the month of April was reported to be $19/b a $1/b increase from the prior month.
In our opinion, the areal scale of the Airshagyl field as reported by the company, 58 square km, is far greater than we had modelled and expected. The Deep A5, A6 and A8 well have been drilled into the Airshagyl field. We will undertake a technical review of the Airshagyl field in due course.
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