George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksCaspian Sunrise Regulatory News (CASP)

Share Price Information for Caspian Sunrise (CASP)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 4.00
Bid: 3.90
Ask: 4.10
Change: 0.35 (9.59%)
Spread: 0.20 (5.128%)
Open: 3.65
High: 4.00
Low: 3.55
Prev. Close: 3.65
CASP Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

BNG Update and January 2020 Production

10 Feb 2020 07:00

RNS Number : 4015C
Caspian Sunrise plc
10 February 2020
 

Caspian Sunrise PLC

 

("Caspian Sunrise" or the "Company")

 

BNG Update and January 2020 Production

 

The Board of Caspian Sunrise is pleased to update the market with developments at its BNG and 3A Best Contract Areas, together with January 2020 production numbers.

 

BNG

 

Deep Well A5

 

Introduction

 

As previously announced, on 31 December 2019, after perforation of a 63 meter interval between 4,331 meters and 4,394 meters, the well started flowing without artificial stimulation.

 

Also as previously reported, the oil recovered is light oil of high quality with an API of 37 degrees.

 

Current position

 

We are delighted to report the well has now flowed for 40 days.

 

The Company's management remains pleased with progress at Deep Well 5 and continues to believe the well is capable of producing at least 1,500 bopd.

 

At this early stage however, and based on past experience, our focus has been to ensure the well continues to flow rather than to seek to maximise flow rates. We have sought to achieve this by maintaining a constant pressure through regular adjustments to the choke size, thereby reducing the risk of blockages from excess drilling fluids and other well debris.

 

We are in no hurry for the well to reach its optimum operating capacity and are considering a number of actions which may help maximise the ultimate contribution the well makes to the Company's fortunes.

 

For example, our operational team believes the well would benefit from acid treatment. Accordingly, later in February we shall begin operations to conduct an acid job using hydrochloric acid ("HCL"). This acid treatment will be designed to use sufficient pressure to push the acid into the existing reservoir but without fracturing the reservoir. These operations are expected to take three days.

 

 

Other Deep Wells

 

Deep Wells A8, 801 & A6

 

We continue to wait on the results of a new chemical analysis to determine the best way to stimulate these wells using high pressure acid treatments. As previously reported we are using a specialist laboratory in Western Europe to evaluate using a different acid designed to directly attack the barite mud used to control the wells during the high pressure drilling phase rather than acid used to date, which may be better suited to attacking rock.

 

Once the results of this analysis are received these wells will receive the appropriate acid treatment.

 

 

Deep Well A9

 

As previously announced the next deep well there is expected to be Deep Well A9, which, if successful, would extend the perimeter of the Airshagyl structure.

 

Our intention is to spud Deep Well A9 in the first half of 2020. Preparatory work continues with a view to selecting a drilling contractor before the end of Q1 2020.

 

Shallow Wells - MJF

 

As previously stated a prime focus remains the continued development of the MJF structure. These wells are usually quick to drill, test and bring into production and the bulk of the oil produced is available to be sold by reference to world rather than domestic prices. Consequently, we have two drilling rigs and one workover rig in operation on the MJF structure and intend to add a third drilling rig when operating conditions improve.

 

Existing wells

 

Oil production from the 5 producing MJF wells increased by 4 per cent. compared to December.

 

Further details of the January 2020 production numbers are set out below.

 

New wells

 

We reported at the end of 2019 that six new MJF well sites have been prepared for drilling, so avoiding this work being undertaken in the worst of the winter difficult winter conditions.

 

Well 150 was spudded in mid-December with a Total Depth of some 2,500 meters. To date the well has reached a depth of 1,420 meters without incident.

 

Well 153, which has a target spud date of Mid-February has 60 days allocated for drilling and testing, so that we expect it to be on production by the end of Q2 2020.

 

3A Best

 

As previously reported we have been working for some time with the Kazakh authorities to revise the work obligation under the existing licence.

 

We are therefore pleased to report agreement has been reached on a new work programme under which we have the obligation to drill one exploration well to a depth of 2,500 meters.

 

We are in discussions with drilling contractors based in the Aktau area in preparation for a H1 2020 spud.

 

January 2020 oil production figures

 

The total number of barrels produced in January 2020, was 44,169 (December 2019, 43,498) at a daily rate of 1,425 bopd (December 2019, 1,403). Deep Well A5 contributed 1,887 barrels in January, which was sold at domestic prices.

 

Production in January would have been approximately 2,770 barrels greater had we not been required to cease production at three wells (805, 806 & 807) first drilled in Soviet times, resulting from our application for the shallow South Yelemes structure as a whole moving onto an Export basis, similar to the MJF structure.

 

In January 2020, 66% of oil sold was at export prices and 34% at domestic prices (December 2019, 64% & 36%).

 

The export price achieved in January 2020, before adjustment for subsequent minor variations, was $59.6 per barrel (December 2019, $59.6 per barrel) and the domestic price was $18.75 per barrel (December 2019, $18 per barrel).

 

General Meeting

 

Shareholders are reminded of the Company's General Meeting to be held at the offices of Fladgate 16 Great Queen Street, London WC2B 5DG at 11.00 Thursday 13 February 2020, to consider and if thought fit approve the $25 million purchase of the Caspian Explorer, a shallow water drilling vessel designed for use in the northern Caspian Sea.

 

The proposed acquisition is to be funded by the issue of 160,256,410 new shares at a price of 12p per share, with the vendor shareholders locked-in for a 3 month period from completion.

 

Further details of the proposed acquisition may be found at the company's website www.caspiansunrise.com

 

Comments:

 

Clive Carver, Executive Chairman said:

 

 

"Deep Well A5 has now flowed longer than any of our deep wells drilled to date and we continue to believe once optimised it will produce at the rate of at least 1,500 bopd.

 

Given the importance of the A5 well and the Airshagyl structure generally we are taking our time in assessing what is best for the long term contribution the well will make to the Company's fortunes.

 

We look forward to updating shareholders once the results of the planned acid treatment are known.

 

Otherwise it is business as usual in possibly weather-wise the most difficult part of the year."

 

 

Contacts:

 

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. 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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
DRLUPUCGPUPUGMM
Date   Source Headline
25th Mar 20247:00 amRNSStrategic & Operational Update
16th Feb 20247:00 amRNSBNG Operational update
21st Dec 20237:00 amRNSOperational Update
31st Oct 20237:00 amRNSOperational update
25th Sep 20237:00 amRNSInterim results for six months ended 30 June 2023
31st Jul 202312:49 pmRNSGM results
31st Jul 20237:00 amRNSGeneral Meeting & BNG and Caspian Explorer updates
11th Jul 202312:50 pmRNSHolding(s) in Company
10th Jul 20237:00 amRNSBoard change, Posting of the 2022 Results
7th Jul 20237:30 amRNSRestoration- Caspian Sunrise plc
7th Jul 20237:00 amRNSAnnual Report for the Year Ended 31 December 2022
3rd Jul 20237:30 amRNSSuspension - Caspian Sunrise plc
30th Jun 20233:51 pmRNSAGM results
30th Jun 20237:00 amRNSAGM Statement
12th Jun 20237:00 amRNS50% Sale of Caspian Explorer & Operational Update
1st Jun 20239:26 amRNSAGM and 2022 Accounts update
7th Mar 20237:00 amRNSCaspian Explorer contract signed & Dividend update
20th Feb 20237:00 amRNSCaspian Explorer update & Dividend update
30th Jan 20237:00 amRNSDeep well update
16th Jan 20234:40 pmRNSSecond Price Monitoring Extn
16th Jan 20234:35 pmRNSPrice Monitoring Extension
16th Jan 20232:05 pmRNSSecond Price Monitoring Extn
16th Jan 20232:00 pmRNSPrice Monitoring Extension
16th Jan 202311:05 amRNSSecond Price Monitoring Extn
16th Jan 202311:00 amRNSPrice Monitoring Extension
16th Jan 20237:00 amRNSTender Update
12th Jan 20237:00 amRNSThird Monthly Dividend Declaration
22nd Dec 20228:14 amRNSOperational Update
5th Dec 20227:00 amRNSSecond Monthly Dividend Declaration
11th Nov 20227:00 amRNSDividend Details
7th Nov 202211:05 amRNSSecond Price Monitoring Extn
7th Nov 202211:00 amRNSPrice Monitoring Extension
4th Nov 20224:40 pmRNSSecond Price Monitoring Extn
4th Nov 20224:35 pmRNSPrice Monitoring Extension
4th Nov 20227:00 amRNSOperational Update and Dividend Declaration
3rd Oct 20224:41 pmRNSSecond Price Monitoring Extn
3rd Oct 20224:36 pmRNSPrice Monitoring Extension
26th Sep 202210:14 amRNSReplacement Announcement for Interim Results
26th Sep 20227:00 amRNSInterim results for six months ended 30 June 2022
11th Aug 20227:00 amRNSResult of GM
30th Jun 20222:21 pmRNSResult of AGM
30th Jun 20228:53 amRNSOraziman family holdings
27th Jun 20227:00 amRNSAnnual Report and Financial Statements
22nd Jun 20228:32 amRNSUK High Court confirms Capital Reduction
6th Jun 20227:00 amRNSOperational and impact of Russian sanctions update
31st May 20227:00 amRNSNotice of AGM
30th May 20227:00 amRNSUK Oil Company Windfall Tax & Dividend Update
25th May 20227:00 amRNSOperational update
22nd Apr 202211:27 amRNSProposed cancellation of share premium account
8th Apr 20229:05 amRNSSecond Price Monitoring Extn

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.