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

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

LONDON (Alliance News) – Shares in Caspian Sunrise PLC soared Monday after it announced it struck oil at its Deep Well A5 at its flagship BNG contract area in Kazakhstan.

It has a 99% interest in BNG.

Caspian shares were up 79% at 15.62 pence early Monday following the announcement, having spiked initially to a new 52-week high of 17.20p.

Deep Well A5 was drilled and completed, and on Saturday was opened for clean-up purposes, with initial flow rates around 3,500 barrels of oil per day using an 11 millimetre choke.

The well flowed without interruption for four hours, Caspian said, before it was shut-in, pending the arrive of high-pressure testing equipment.

Well-head pressure varied from 160 to 300 bar, Caspian said, with build-up dynamics indicating an “excellent reservoir quality”.

Meanwhile, the company is continuing to work to start flow tests at wells A6 and 801, and its Shallow Well 146 has reached a depth of 1,732 meters without incident. It expects costs of Well 146 to be around USD1.5 million and to reach a total depth of 2,500 metres in November.

“The long sought after prize of a deep well flowing has now been achieved,” said Executive Chairman of Caspian Clive Carver in a statement. “The volumes of high quality oil already recovered under natural pressure from the well indicates the huge potential of the deep horizons at BNG. We continue to work to bring deep Wells A6 and 801 into production and look forward to providing further updates on Deep Well A5 in due course.”