Caspian Sunrise plc BNG operational update (7307S)

TIDMCASP

RNS Number : 7307S

Caspian Sunrise plc

13 March 2019

Caspian Sunrise PLC

("Caspian Sunrise" or the "Company")

BNG operational update

The Board of Caspian Sunrise are pleased to update shareholders with developments at its flagship BNG Contract Area.

Deep Wells

A5

The well has now been cleared to a depth of 4,238 meters, some 147 meters above the top of the previously perforated and tested interval; 4385-4395m.

It is possible that previous attempts to clear the well have resulted in damage to the tubing and casing. Our intention is now to clean out the remaining 147 meters before evaluating the condition of existing tubing and casing replacing /repairing as appropriate prior to attempting to flow and test the well.

Barring additional difficulties and provided that the existing tubing and casing are found to be in good condition, our objective is to commence preparations for the much-awaited long-term flow test before the end of March.

801

Since our last update annular pressure has stabilised at approximately 600 ATM with tubing pressure currently at approximately 380 ATM's and continuing to rise. International consultants have been engaged to assist us in our plan to stimulate the well by hydraulic pressure injection before initiating a full flow test.

A6

As previously announced work on Well A6 is temporarily suspended pending the outcomes at Deep Wells A5 and 801. We are using this time to have international consultants with deep and high pressure well experience to review our workover program.

A8

Progress remains encouraging at our latest deep well, A8, which was spudded on November 2018 with a target Total Depth of 5,300 meters.

We have successfully drilled to a depth of approximately 3,900 meters reaching the Permian aged Kungurian salt section. The next planned casing point is at the expected base of salt and enter the Artinskian (shale) at a depth of approximately 4,400 meters.

We have also extended the contract with Sinopec, who are now engaged to drill the well to the full planned Total Depth.

Shallow wells

Production from our shallow wells for February 2019, was in aggregate 42,913 barrels or 1,533 bopd, with oil sold at an average price of $20.50 per barrel.

Compared to January 2019, average daily production was 54 bopd higher while total monthly oil production was down 2,928 barrels reflecting the fewer days in February.

MJF licence upgrade

As previously announced we are waiting on the Kazakh authorities to formally approve the move at our MJF structure to a full production status, which will allow the majority of the oil produced from this structure to be sold by reference to world rather than domestic prices - currently approximately double the domestic price received per barrel.

This approval has been delayed principally as the result of anticipated changes within the Kazakh Government, which have now been finalised. Accordingly, we expect the MJF licence upgrade to become effective without further administrative delay.

Comments:

Clive Carver, Chairman said

"While it is pleasing to report steady rather than dramatic progress we remain focused on getting our deep wells to flow as soon as practicable. In the meantime and while we wait for the MJF licence upgrade the income from our existing production, even at domestic prices, together with periodic advances from local oil traders continues to fund our operations."

 
 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.

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.

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March 13, 2019 05:30 ET (09:30 GMT)