Caspian Sunrise Progresses With Kazakhstan Oil Project

Caspian Sunrise Shares Up As It Strikes Oil At BNG Area In Kazakhstan

Oil and gas company Caspian Sunrise PLC on Tuesday said wells at its project in western Kazakhstan have spudded.

Well 144 in the MJF field at the 99% owned interest in the BNG contract area spudded in May and started production in July flowing at a rate of 700 barrels of oil per day, while well 145 spudded in July and has reached a depth of 1,150 meters.

Aggregate production from the MJF field is running at about 1,693 bopd and the company said income from the MJF structure alone, even taking into account selling oil at domestic prices, allows it to cover all general, administrative and shallow drilling costs.

London-listed Caspian said it was aiming to move from an appraisal licence, where oil produced must be sold at domestic prices which is currently some USD16 per barrel, to a production licence, where the majority of oil produced can be sold at world prices in July 2018, subject to regulatory approval.

Meanwhile, for well 808, Caspian said there may be a leak in the well casing resulting water inflow. Well 808 spudded in January and was drilled to a depth of 3,200 metres in March.

Executive Chairman Clive Carver said: “we continue to be extremely pleased with progress at the MJF structure, which now even at domestic prices, funds the day to day costs of the group and our shallow drilling operations.

“We are continue working to seek to get A6 flowing and are now close to finishing the planned work at deep well A5, after which the rig involved will be released to tackle deep well 801,” Carver added.

Shares in Caspian were up 0.4% to 7.03 pence on Tuesday.