Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG Monthly production numbers
The Board of Caspian Sunrise are pleased to announce significantly improved production and revenue numbers for September 2019, from the shallow wells at its flagship BNG Contract Area.
Oil produced in September 2019, was 40,826 barrels (36,530 barrels in August 2019) at the rate of 1,361 bopd (1,178 bopd in August 2019), an increase of 15.5%.
Approximately one third of this production was sold at domestic prices and, for the first time, approximately two thirds was sold by reference to world prices.
Oil sold by reference to world prices is subject to several taxes and other deductions some of which are calculated on a quarterly basis. Therefore, starting with this production update, we will be announcing the gross price applicable to the oil produced in a particular month.
Following standard accounting practice, the date export sales are recognised in the financial statements is the date it is received at the destination nominated by the buyer. With different locations and different weather conditions oil produced in one month is generally recognised as income the following month, although this is not always the case.
The average gross price achieved for oil sold to the domestic market for September production was $20.5 per barrel (August 2019 $20.0) and the gross price achieved for the oil sold by reference to world prices was $55.5 per barrel, before small adjustments (up or down) yet to be quantified and calculated by reference to actual Brent prices on the day of sale.
The increase in production volumes reflects successful workovers at Wells 141 and 145. Production at these wells following the initial workovers increased by 144% and 58% respectively.
Further workovers are planned on the existing MJF wells which are expected to boost production volumes. Additionally, the campaign to drill a further 18 MJF infill wells is underway, with the first six drill sites being prepared for drilling. We are targeting 31 December 2019, to complete the next three wells at the MJF structure.
Ends
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.
