Caspian Sunrise plc Operational Update (5951G)
March 18 2020 - 4:34AM
UK Regulatory
TIDMCASP
RNS Number : 5951G
Caspian Sunrise plc
18 March 2020
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
Operational Update
The Board of Caspian Sunrise are pleased to update the market
with news of its operational activities and action taken in light
of the recent sharp decline in the world oil price.
MJF Infill wells
The Board is pleased to confirm New Well 150, has been completed
with perforation expected in the next few days.
The Board is also pleased to report that New Well 153, also on
the MJF structure, which has a target Total Depth of 2,500 meters,
has reached a depth of 1,800 meters, at which casing is being set,
without incident. Based on progress to date the well is expected to
reach Total Depth and be ready for perforation by the end of the
month.
Deep Wells
The planned acid treatments at three of our already drilled BNG
deep wells, A6, 801 & A8 are expected to commence in sequence
in the next 30 days .
Our expectation is that the completion of the work noted above
should result in a significant increase in oil produced.
Suspension of planned drilling operations
Given the impact of the lower oil price we have decided to
temporarily suspend all new drilling activities after the
completion of New Wells 150 & 153 and the planned acid
treatments at Depp Well A6 and, 801 & A8.
This, together with the agreement of the Board to defer a
significant portion of its salary payments, will help bring ongoing
costs into line with the income receivable from the existing
shallow wells production at the reduced world and domestic
prices.
For the avoidance of doubt the existing producing wells will
continue to be operated and the production sold, as will the New
Wells 150 & 153 as they come into production, and as will any
of the three Deep Wells that flow following the acid treatment
referred to above.
Other matters
The Board notes the recent devaluation of the Tenge against the
US$, which will reduce G & A costs further.
While world prices have clearly fallen we expect sales made at
domestic prices to be largely unchanged.
Outlook
The Board will look to resume the planned drilling programme
once there is an improvement in world prices.
The Company has no long term debt and the Board believes the
outlook for the Company over the medium and longer term remains
encouraging. The steps noted above should assist in realising our
medium / longer term potential.
Contacts:
Caspian Sunrise PLC
Clive Carver
Executive Chairman +7 727 375 0202
WH Ireland, Nominated Adviser & Broker
James Joyce +44 (0) 207 220 1666
James Sinclair-Ford
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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