Caspian Sunrise Loss Balloons In 2016 As Drilling Progresses
Caspian Sunrise PLC ( formerly Roxi Petroleum PLC) on Monday said its loss swelled in 2016 after reporting higher costs and because the company did not benefit from a exceptional gain as it did in 2015.
Caspian Sunrise said revenue in 2016 rose to USD1.6 million from USD1.1 million, but revealed it turned to a tiny gross loss of USD18,000 from the USD2,000 profit in 2015.
The company reported a rise in administrative costs to USD3.1 million from USD2.8 million and the USD2.2 million gain from the revaluation of a royalty that was booked in 2015 did not repeat.
The pretax loss for the year amounted to USD4.2 million, widened from the USD1.9 million loss the year before.
The Kazakhstan-focused oil and gas firm said deep well A6 on the BNG contract area has been re-perforated while deep well A5 will be side-tracked by the end of June. The shallow well 144 was drilled in May on the MJF structure which, if successful, would extend that structure. Meanwhile, shallow well 808 was also drilled and found a potential new structure.
Caspian said all three of the shallow wells on the South Yelemes structure are producing 150 barrels of oil per day. Deep wells A5 and 801 are producing “intermittently” at a rate of around 2,000 barrels daily.
The previously announced merger with Baverstock should be completed by the end of June, after which Caspian will hold 99% of the BNG area.
Caspian shares were up 3.9% at 10.00 pence on Monday.
By Joshua Warner, Alliance News Limited