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Caspian Sunrise plc (CASP)

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Monday 19 March, 2018

Caspian Sunrise plc

Operational Update

RNS Number : 0654I
Caspian Sunrise plc
19 March 2018
 

Caspian Sunrise PLC

("Caspian Sunrise" or the "Company")

 

 

Operational update

 

Introduction

 

Caspian Sunrise the Central Asian oil and gas company, with a focus on Kazakhstan, is pleased to update the market with news at the BNG Contract Area of progress at its Deep and Shallow Wells.

 

Weather update

 

Normal operations have resumed following follow the previously announced, delays caused by exceptionally cold weather  over the period December 2017 until February 2018.

Deep Wells

 

Deep Well A5

 

As previously announced, our first deep well A5 flowed for 15 days prior to the formal 90-day flow test at a rate of 3,800 bopd using a 10mm choke and after a partial blockage at the rate of approximately 1,000 bopd again with a 10mm choke.

 

The test was suspended to deal with the partial blockage so that the best possible results are obtained in order to maximise reserve estimates.

 

The well was completed open hole with an open ended pre-perforated liner which became obstructed when carbonate rock fragments were transported into the liner due to the high pressures experienced in the well.

 

 

Following unsuccessful attempts to clear the obstructions using readily available equipment,a contractor with more specialised coil tubing equipment was mobilized.

 

The permitting required to begin coil tubing operations is expected to be finalized before the end of March and then, subject to clearing the obstruction, we would resume the 90-day flow test.

 

 

Deep Well 801

 

After extensive preparatory work we are pleased to report that the planned side-track at Deep Well 801 from a depth of 4,516 meters is underway.

 

The existing pipe is being milled to create a hole in the casing to allow the side-track drilling to commence. The total length of side-track is planned at 445 meters.

 

Provided the side-track operation is successful, the well would be placed on a 90-day flow test. Pressure levels in the well remain encouraging suggesting good pressure communication between the wellbore and the open formation at depth.

 

 

Deep Well A6

 

As previously reported, work to get this well to flow to allow extended testing is dependent upon re-deploying   drill pipes from from Deep Well 801.

 

Deep Well A8

 

Given the adverse weather for much of Q1 the spudding of new Deep Well A8 has been rescheduled for Q2 2018. Top hole preparations are ongoing and the well has been sited 750 meters from Deep Well A5 making it in the opinion of the Company's management highly promising given the results to date from Deep Well A5.

 

Shallow Wells

 

MJF Structure

 

Well 146

 

Well 146 is the sixth well to be drilled on the MJF structure.

 

The well is near the regional bounding fault which forms the eastern boundary of the field. The location of this well was largely determined by the need to drill across the MJF structure to qualify to move the whole MJF structure onto a full production basis following the expected licence renewal on 1 July 2018.

 

Initial testing shows production from well 146 to be more challenging than previous MJF wells. Unlike wells 141, 142, 143, 144 and 145, we believe it will be necessary to use artificial lift equipment to maximise the flow of oil to the surface.

 

A beam-pump/sucker-rod lift system is being installed.  Once operational we expect to obtain reliable flow rate information. Once flow results from Well 146 are known, results from this and other wells will be used to revise the reservoir  interpretation.

 

Gaffney Cline and Associates will then work with Caspian Sunrise to update reserve estimates.

 

Well 142

 

Well 142 is the most northern well drilled to date on the MJF structure. Production at this well has ceased following a workover designed to increase flow rates. Once the flow rates from well 146 are clear then a decision will be taken as how to proceed at well 142.

 

 

 

Clive Carver, Executive Chairman, Caspian Sunrise comments:

 

"Following the weather delays previously reported we have now resumed work  at both A5 and 801. Management remains encouraged by the initial  flow rate at A5 and the pressure and flows to the surface under natural pressure at Deep Well 801 providing confidence for hoped for positive outcomes for these wells."

 

Ends

 

Caspian Sunrise PLC

 

Clive Carver

Executive Chairman

+7 727 375 0202

 

 

WH Ireland, Nominated Adviser & Broker

 

James Joyce

Jessica Cave

James Sinclair-Ford

 

+44 (0) 207 220 1666

Yellow Jersey PR

Tim Thompson

Henry Wilkinson

 

+44 (0) 203 735 8825

 

Qualified Person

 

Mr. NurlybekOspanov, 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.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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