Operational update

RNS Number : 6858M

Caspian Sunrise plc

25 May 2022

 

25 May 2022

Caspian Sunrise PLC

Operational update

Introduction

The Board of Caspian Sunrise PLC ("Caspian Sunrise" or the "Company") is pleased to report the successful workover of Well 142 on the MJF structure, which has added a further approximately 1,400 bopd (at 8mm choke) to the BNG production capacity, which including the existing South Yelemes wells, is now approximately 4,000 bopd.

Background

Well 142 was one of the first to be drilled on the MJF structure. It was drilled to a depth of approximately 2,500 meters in 2016 and produced steadily over a number of years with periodic conventional workovers.

Using a horizontal drilling approach, the well was re drilled from a depth of 1,984 meters with a horizontal spur of 90 meters into the interval.

This is the latest of a number existing wells to be re-drilled using a horizontal drilling approach.

Drilling programme

Existing MJF shallow wells 141 and 151 are next to be re drilled. Planning continues for a new horizontal well on the shallow South Yelemes structure, which like the MJF structure has a full production licence. This new horizontal well will have a planned Total Depth of 2,430 meters and target potential oil-bearing intervals in the Dolomites.

Deep Well 802 is planned to be spudded in June. This well will have a Target Depth of 5,300 meters and like the other deep wells drilled at the BNG Contract Area will target potential oil-bearing intervals in the Carboniferous and the Devonian. Deep Well 802 is expected to take 6 months to drill and is the final deep well we are obligated to drill under the BNG work programme.

We then plan to return to Deep Well A5, where we intend to drill a new side track.

Urals Oil

We continue to experience a $30-35 per barrel discount to Brent for oil sent through the Russian pipeline network. The Brent crossover price, when the net returns from sales to the international market equate to the net returns for domestic sales, is approximately $90 per barrel.

Comment

Clive Carver, Chairman said

"Our focus on maximising production from the shallow structures at BNG has resulted in a more than doubling of production capacity since the beginning of the year. We plan to continue the programme of drilling and re drilling shallow wells using a horizontal drilling approach which we believe should result in reaching a production capacity solely from the shallow structures at the BNG Contract Area of 5,000 bopd before the year end.

Caspian Sunrise PLC

Clive Carver

Executive Chairman  [phone]

WH Ireland, Nominated Adviser & Broker

James Joyce  [phone]

Andrew de Andrade

Qualified person

Mr. Assylbek 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 to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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