Caspian Sunrise plc BNG Operational Update (2652G)

TIDMCASP

RNS Number : 2652G

Caspian Sunrise plc

05 November 2018

Caspian Sunrise PLC

("Caspian Sunrise" or the "Company")

BNG operational update

The Board of Caspian Sunrise are pleased to provide the following update.

BNG

Shallow Wells

Production levels

Total oil production in October 2018 from the 5 wells operational in the MJF structure and the 4 wells in the South Elemes structure was 54,348 barrels (average of 1,753 bopd).

Completed workovers

The remedial work completed at the start of October 2018 has resulted in Well 142 returning to production at the rate of approximately 90 bopd, with only 1-2% water content, using a 5mm choke.

Active workovers

Well 146 is currently undergoing workover operations using a similar approach to that successfully used in restoring production to wells 143 and 142

Planned workovers

At Well 808, on a potential new structure, the preparatory work to reperforate and test is now complete. The procurement of the required tubing has commenced and work is set to start once the workover rig now in use at Well 146 becomes available.

Move to full production status

The planned move of the MJF structure to full production status is expected to become effective in 1Q 2019. Of the 54,348 barrels of oil produced in October 2018, 46,946 barrels were from the MJF structure. Under our existing license this production must be sold by reference to domestic prices. In recent months the Company achieved approximately $16 per barrel net of all costs for domestic sales.

Our expectation is that following the move to full production status the price achievable on export sales net of all taxes and production related costs will be of the order of $35 - $40 per barrel.

We have also identified the site for new shallow production Well 147 to be drilled on the MJF structure shortly after the receipt of the MJF structure's full production status.

Deep Wells

Deep Well A5

Deep Well A5 Sidetrack-2 (A5 ST-2) has a total depth of 4,450 meters. The pre-salt carbonate reservoir is perforated over a 105 meter interval (4,332 to 4,437 meters). Milling operations to remove a metal obstruction in the well continue to progress at a current depth of 4,054 meters.

As previously announced, for the 15 days between 23 October and 27 November 2017 prior to the formal start of 90 day testing, the well flowed at the rate of approximately 3,800 bopd before being restricted by a partial blockage. Our intention is to restart the 90-day flow test once wellbore is clear of obstructions.

Deep Well 801

The pressure build-up in Deep well 801 since Caspian's last update has been steady, exceeding the Company's initial expectations, and now stands at approximately 360 ATM (5292 psi). Procurement of services are underway for re-perforation and acid fracture jobs to be followed by a 90-day flow test.

Deep Well A6

As previously announced, the Company continues to work on a detailed recompletion plan while waiting for equipment in use at A5 and 801 to become available.

New Contract for up to a further 3 deep wells

The Company has entered into a contract with a leading international drilling company for up to three new deep wells, A8, A9 & A10. Under the contract the leading international drilling company will be responsible for the first phase of drilling with Caspian Sunrise taking over for the more complicated final phase through the salt layer and the high pressure and high temperature zones expected below the salt layer, until the well reaches total depth.

The Company has decided to enter into this arrangement in order to take advantage of the relatively low market rates for the typically straight forward drilling down to the salt layerand then further utilise the Company's knowledge of sub-salt drilling from the experience gained in the three previous BNG deep wells (A5, A6 & 801).

The first well to be drilled under this contract, Deep Well A8, is planned to spud during November and to a planned Total depth of 5,300 meters. The well is located approximately 1 km up structure from Deep Well A5 and will target the same pre-salt carbonates that were successfully identified in the Deep Well A5. We also plan to evaluate deeper carbonate targets of Devonian to Mississippian ages.

The first 4,100 meters of the well will be drilled by our international partner with the final 1,200 meters to be drilled by Caspian Sunrise, using local contractors.

Ends

 
 Caspian Sunrise PLC 
 Clive Carver 
  Executive Chairman              [phone] 
 
 WH Ireland, Nominated Adviser 
  & Broker 
 James Joyce 
  Jessica Cave 
  James Sinclair-Ford             [phone] 
 Yellow Jersey PR 
  Tim Thompson 
  Henry Wilkinson                 [phone] 
 

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.

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 announcement has been posted to:

www.caspiansunrise.com/investors

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November 05, 2018 02:00 ET (07:00 GMT)