Last checked at 27 Apr 2020 07:00
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG Operational update
Introduction
The board is pleased to announce that New Well 153 has commenced production.
Background
Well 153, was the second of the MJF Phase 1 production wells drilled. It was spudded in mid-February 2020, and reached `Total Depth' of 2,503 meters in early April 2020.
Recently the first of several prospective oil bearing intervals in the well was perforated. This 3.5 meter interval between depths of 2,232.0 and 2,235.5 meters had an initial production rate of approximately 350 bopd using a 6 mm choke. Currently the well is producing about 200 bopd as work continues to establish an optimal long term flowrate from this interval.
New Well 150, the first of the infill wells drilled on the MJF structure continues to produce around 500 bopd.
New Well 153 demonstrates the relatively straightforward wins available from our shallow structures. With multiple proven productive horizons in each well risk of a dry and/or uneconomic well is considered to be very low.
Increased aggregate production
With New Well 153 adding approximately 200 bopd our total average daily production has increased to approximately 1,700 bopd bringing total production capacity from existing wells to approximately 2,000 bopd.
Other matters
On 18 March 2020, we announced the shift in focus of our deep drilling campaign away from Deep Well A5, which required a rig movement, and that we would instead conduct planned acid treatments at Deep Wells A6, 801 & A8 using the crews currently in the field.
The closure of international borders and the additional closure of many of the main roads in the Mangistau region of Kazakh, where BNG is located, has prevented the acid required reaching the BNG Contract Area. It has also prevented the crew in the field from leaving.
We have therefore redeployed our resources as follows:
New Well 151
A G40 rig is being moved into position to drill New Well 151, which would be the third new well of the current MJF infill campaign. We own the rig and in any event are paying the crews so the additional costs should we commence drilling would be confined to principally the casing costs and the costs of the third party contractors involved in perforating and bringing the well into production.
Deep Well A5
Introduction
Our G50 rig is being mobilised at Deep Well A5 to pull out and replaced a cracked link in the tubing.
Work will then resume to allow the well to produce at rates expected from a Deep Well, rather than the amounts produced towards the end of the 40 day flow test at the start of the year.
Background
Deep Well A5, was the first deep well drilled on the BNG Contract Area. It was drilled to a depth of 4,442 meters and in 2017 flowed for 15 days at a rate of approximately 3,800 bopd.
Earlier this year, following three attempts at a side-track, the well again flowed, initially at a rate of 1,000 bopd but quickly declined to approximately 100 bopd. Nevertheless the well flowed without stimulation over a continuous 40 day period before it was closed.
Expectations
As previously announced, we still believe the well is capable of flowing at a rate of approximately 1,500 bopd. Our work programme, if successful, should allow us to test that belief by the end of June 2020.
As with New Well 151, we own the rig and are already paying the crews so the additional costs are limited.
Ends
Comments:
Clive Carver, Executive Chairman said
"The second successful New Well on the MJF is a boost and takes aggregate production capacity to approximately 2,000 bopd.
Being close to events, owning our own rigs and having them on site has allowed us to respond quickly to the changing situation on the ground.
This allows the Company to continue to pursue our twin track approach of seeking relatively straight forward wins in our shallow structures while also going for the higher risk / higher impact successes at our Deep Wells.
As soon as the acid required for the treatments planned at deep Wells A6, 801 and A8 arrives we will resume our planned operations there, which do not require rig movements."
Caspian Sunrise PLC
Clive Carver
Executive Chairman +7 727 375 0202
WH Ireland, Nominated Adviser & Broker
James Joyce +44 (0) 207 220 1666
James Sinclair-Ford
Qualified person
Mr. Timothy Dulaney, one of Caspian Sunrise PLC's Geologist's 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.