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Caspian Sunrise Encouraged By Early Oil Result From Flagship BNG Asset

(Alliance News) - Oil & gas exploration firm Caspian Sunrise PLC said Thursday early oil from its ...

Alliance News 12 September, 2019 | 3:38PM
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(Alliance News) - Oil & gas exploration firm Caspian Sunrise PLC said Thursday early oil from its flagship BNG asset in Kazakhstan was "extremely encouraging."

The BNG contract area is located in the west of the central Asian country. Caspian said drilling at Deep Well A8 at the site had been paused at 4,520 metres rather than the planned 5,300 metres after they decided to consider whether best to perforate the wells at that level instead.

An agreement with drilling partner Sinopec resulted in the wells being perforated at 47 metre intervals between the depths of 4,346 metres and 4,499 metres. This work was undertaken on Saturday and Sunday.

Caspian was "pleased" to report "strong initial gas flows" as well as a "steady" flow of oil and drilling mud was delivered at an estimated rate of 400 litres per hour.

"We expect the drilling mud to be fully recovered in the next few days, after which we will be able to get a more reliable estimate of the flow rates, using a selection of choke sizes," Caspian Sunrise said in a statement.

The oil recovered to date was also described as of a "very high quality", with specific gravity of 0.83 grammes per square centimetre. This is equivalent to an API gravity of 39.

"The successful perforation of A8 and the early oil shows are extremely encouraging," Caspian Executive Chair Clive Carver said. "However, it will only be after an extended flow test that we will be able to publish reliable flow rate data."

Shares in Caspian Sunrise were 3.3% higher at 10.85 pence in London on Thursday.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Caspian Sunrise PLC 8.40 GBX -1.75 -

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