Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG Operational update & November Production Numbers
The Board of Caspian Sunrise is pleased to provide an operational update from the Company's flagship BNG Contract Area, together with November 2019 production numbers.
Deep Wells
Deep Well A5
As previously announced the side-track from a depth of 3,796 meters successfully reached a depth of 4,044 meters without incident, which has become the well's new Total Depth.
Since then cementing has been successfully completed and the well extensively cleaned to allow the perforation of an interval of 40 meters from the already identified 64 meters of prime interest.
The well is undergoing final cleaning and logging before the penetration, which if successful would be followed by a 90 day flow test.
Deep Well A8
Following acid treatment the well flowed for approximately seven hours, producing at the rate of approximately 1,500 bopd. The flow ended with the well becoming blocked with excess drilling fluid originally introduced during the drilling phase.
This is the first occasion the well has flowed meaningful quantities of oil.
Cleaning work is being undertaken in preparation for further acid treatments.
Deep Well 801
The acid treatment will start at Deep Well 801 following completion of work at Deep Well A8.
Deep Well A6
The acid treatment at Deep Well A6 will commence after completion of work at Deep Well 801.
Shallow wells
The November 2019 production figures below provide further evidence that the existing wells on the MJF structure continue to perform strongly and provide the bulk of the oil produced across the Contract Area.
The first of the planned 18 in fill wells at the MJF structure is now expected to spud in the next fortnight. The delays in spudding resulted from the need to obtain specialist spare parts for equipment required to move the drilling rigs into position.
We now plan to use three rigs to complete the 18 well infill programme and are therefore still working towards completing the full programme by the end of 2020, at which time we would have 24 wells on the MJF structure potentially producing up to 8,000 bopd, assuming each well produces as anticipated.
November 2019 production figures
The total number of barrels produced in November 2019, was 41,682 (October 2019, 43,415) at a daily rate of 1,389 bopd (October 2019, 1,401 bopd).
All the oil produced was from shallow structures, with 87% from the MJF structure and 13% from South Yelemes.
In November 2019, 58% of oil sold was at export prices and 42% at domestic prices (October 2019, 50% & 50%).
The export price achieved in November 2019, before adjustment for subsequent minor variations, was $55 per barrel (October 2019, $55.5 per barrel) and the domestic price was $19 per barrel (October 2019, $19.5 per barrel).
The slight decrease in November 2019, production numbers reflects one less day in the month compared to October, but more importantly that Well 144 was out of production for 7 days during the month while it was being worked over. The result of the workover being an increase in daily production from 141 bopd to 184 bopd, an increase of 30%.
We plan to workover existing MJF wells on a regular basis and to that end a workover rig currently in use assessing Well 808, on a potential but to date inconclusive new shallow structure, is to be moved to the MJF structure to assist in the process.
Comments:
Clive Carver, Executive Chairman said
"Exciting times"
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.
