BNG Operational Update

RNS Number : 8286U

Caspian Sunrise plc

08 April 2021

 

Caspian Sunrise  PLC

("Caspian Sunrise" or the "Company")

BNG Operational Update

Introduction

The Board of Caspian Sunrise are pleased to provide the following operational update at its flagship BNG Contract Area asset.

First quarter production volumes

In the three months ended 31 March 2021, 119,916 bbls of oil were produced at an average of approximately 1,332 bopd.

Oil Prices

While international prices have recovered to their pre Covid-19 levels, domestic prices remain extremely low but have recently increased from approximately $6 per barrel to approximately $7.27 per barrel.

Operations at BNG

Deep Wells

The Company has engaged a local contractor to undertake fracking operations to seek to bring three of the four deep wells drilled to date into production.

Deep Well A8 on the Airshagyl structure will be the first well worked on before in turn A6 and 801.

Work at at Deep Well A5, to remove 400 meters of stuck pipes remains paused. However, contracts are being finalised with a different local contractor to use specialist tools to attempt to free these pipes from the well. 

Shallow wells - MJF

The Board is also pleased to report a new shallow well, 154, has been spudded on the MJF structure with a planned Total Depth of 2,200 meters. The well is expected to take 2 months to drill and if successful should be able to produce towards the end of Q2 2021.

Additionally, management are considering the use of horizontal drilling on the MJF structure to further increase production.

Shallow wells - South Yelemes

Our expectation remains that the licence upgrade will come through in Q3 2021, when the majority of oil produced may be sold at export rather than domestic prices.

Comment

Clive Carver, non-executive chairman commented.

"With the improving weather we are able to increase the pace of our operations at BNG. We now have three operational rigs and expect a fourth rig to become operational in the next few weeks.

Contacts:

Caspian Sunrise PLC

Clive Carver

Chairman  [phone]

WH Ireland, Nominated Adviser & Broker

James Joyce  [phone]

James Sinclair-Ford

Qualified person

Mr. Asslybek Umbetov, a member Association of Petroleum Engineers, 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.

 

END

 

 

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