Last checked at 18 Mar 2020 08:34
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
Operational Update
The Board of Caspian Sunrise are pleased to update the market with news of its operational activities and action taken in light of the recent sharp decline in the world oil price.
MJF Infill wells
The Board is pleased to confirm New Well 150, has been completed with perforation expected in the next few days.
The Board is also pleased to report that New Well 153, also on the MJF structure, which has a target Total Depth of 2,500 meters, has reached a depth of 1,800 meters, at which casing is being set, without incident. Based on progress to date the well is expected to reach Total Depth and be ready for perforation by the end of the month.
Deep Wells
The planned acid treatments at three of our already drilled BNG deep wells, A6, 801 & A8 are expected to commence in sequence in the next 30 days .
Our expectation is that the completion of the work noted above should result in a significant increase in oil produced.
Suspension of planned drilling operations
Given the impact of the lower oil price we have decided to temporarily suspend all new drilling activities after the completion of New Wells 150 & 153 and the planned acid treatments at Depp Well A6 and, 801 & A8.
This, together with the agreement of the Board to defer a significant portion of its salary payments, will help bring ongoing costs into line with the income receivable from the existing shallow wells production at the reduced world and domestic prices.
For the avoidance of doubt the existing producing wells will continue to be operated and the production sold, as will the New Wells 150 & 153 as they come into production, and as will any of the three Deep Wells that flow following the acid treatment referred to above.
Other matters
The Board notes the recent devaluation of the Tenge against the US$, which will reduce G & A costs further.
While world prices have clearly fallen we expect sales made at domestic prices to be largely unchanged.
Outlook
The Board will look to resume the planned drilling programme once there is an improvement in world prices.
The Company has no long term debt and the Board believes the outlook for the Company over the medium and longer term remains encouraging. The steps noted above should assist in realising our medium / longer term potential.
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.