Caspian Sunrise Regulatory News (CASP)

Caspian Sunrise PLC

("Caspian Sunrise" or the "Company")

BNG Operational Update

The Board of Caspian Sunrise is pleased to provide an operational update on progress across the structures already identified at the BNG Contract Area.

Deep Wells

A5

The Board is pleased to report success in milling away the 2.6-meter metallic obstruction in Well A5 at a depth of 3,887 meters, following which an 85-meter section of lining has been removed from the well much sooner than expected. 

While we believe this already provides sufficient room to start the planned 500 meter side-track below the salt layer, for operational ease we have decided to continue to seek to remove approximately a further 30 meters of the lining.

If successful, the side-track will commence at a depth of 4,006 meters. If it is not possible to remove these additional 30 meters of liner the side track would start at a depth of 3,976 meters.

Once started the side-track is expected to take up to two months to complete.

A8

Deep Well A8, is the third deep well drilled on the Airshagyl structure. We have in previous announcements referred to the exitence from a depth of 4,342 of a 159-meter carbonate interval, of which 52.5 meters is of porous oil-bearing rock.

Since our last announcement, casing has now been set to a depth of 4,520 meters and the associated cementing completed. We are waiting on an independent assessment of the quality of the cementing before deciding how to proceed.

Our other Deep Wells

We are pleased to report that, in conjunction with a leading international contractor, we are looking to use technology new to Caspian Sunrise to deal with the issues present at both Deep Well A6 and Deep Well 801.

A6

At Deep Well A6, the principal challenge is establishing connectivity between the wellbore and the reservoir due to the presence of near wellbore damage caused by heavy drilling mud and previous perforating attempts.

We now have a two-fold strategy to address and establish connectivity. The first part of the strategy utilises the technology referred to above, by seeking to perforate an interval of potentially oil-bearing rock using acid stimulation techniques, which do not require a rig.

The second part of the strategy, if required, involves the utilization and application of more powerful, deeper penetrating perforating charges to help establish reservoir to wellbore connectivity.

Should this second part of the strategy be required, it is anticipated that the work would be conducted in Q4, 2019 following drilling of the A5 side-track.

801

The issues with Deep Well 801 are the blockages, first in the main well and then in the side-track already drilled to get around the pipes stuck towards the bottom of the main well. The blockages result from the use of heavy density drilling mud to contain the extreme pressures in the well.

Until recently our approach in dealing with this was to use extremely powerful coil tubing equipment to clear out the well. We have now, in conjunction with a leading International contractor, decided to first attempt to clear the well ready for testing by the use of the same technology as at Deep Well A6.

In particular, we will use the same acid treatment to both clear the well and to create longer than standard penetration of the potentially oil-bearing rock.

As at A6 this approach does not require a rig and once started is expected to produce results later in Q3, 2019.

Shallow Wells

MJF

Now the licence upgrade has been received we intend to commence a 10-well infill drilling programme following which we expect production from the MJF structure to have increased to approximately 4,000 bopd.

Each infill well is expected to cost $1.2 million and to take up to two months to drill.

For reasons of economy, we intend to purchase a significant portion of the equipment required for these shallow infill wells.

New Structure

At the potential new structure, on which well 808 was drilled, two new intervals have been perforated but to date without the discovery of commercial quantities of oil. Perforation work is set to continue at intervals higher than those recently perforated.

Monthly production numbers

The Board also announces that for the month of June 2019 total production from BNG was 38,571 barrels (May 42,434 barrels) and that the daily average production was 1,286 barrels (May 2019 1,396 bopd).

The average domestic sales price achieved was $19 per barrel (May 2019 $19 per barrel).

The decrease in production volumes was expected and is the result of postponing much needed remedial work on the MJF wells. Now we have received the MJF licence upgrade we are in a better position to schedule the MJF well workovers to restore production to previous levels.

Comments:

Clive Carver, Executive Chairman said:

"The progress at BNG since our last update is encouraging and we look forward to reporting on the results from our use of the new technologies."

Qualified Person

Mr. Nurlybek Ospanov, Caspian Sunrise PLC's Chief Geologist / Technical Director who is a member of the Society of Petroleum Engineers ("SPE"), has reviewed and approved the technical disclosures in this announcement.

This announcement has been posted to:

www.caspiansunrise.com/investors

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.