Caspian Sunrise reports progress at BNG contract area

16th Feb 2024 13:24

(Sharecast News) - Caspian Sunrise updated the market on operations at the BNG contract area on Friday, reporting that well 142, a key asset on the MJF structure, had resumed production after more than 12 months.

The AIM-traded firm said that, despite initial setbacks with two intervals proving non-commercial, the third interval had shown promise, with oil flowing at about 160 barrels of oil per day.

Similarly, horizontal drilling at well 805 on the South Yelemes structure had boosted production to around 160 daily barrels.

The company said it planned to replicate that success with other wells on the South Yelemes structure, with well 807 slated for the next workover.

Overall, current production stood at approximately 1,900 barrels per day.

The rig previously employed at well 142 would now be used for well 155, the final shallow well in the current BNG work programme.

At the same time, plans for well 141 included removing stuck pipes before drilling a horizontal side-track, while the workover at well 145 did not yield the desired results.

In deep structures, drilling progress was described as steady.

Deep well 803, the final deep well under the current programme, had reached a depth of 500 metres without incident and was expected to achieve its total depth of 4,200 metres by the second quarter of 2024.

Mobilisation of the G40 rig at deep well A5 aimed to advance efforts to bring the well into commercial production.

Similarly, at deep well A7, discussions were underway to resume drilling from around 2,150 metres, with an eye on a planned total depth of 5,300 metres and an interval of interest identified at around 4,000 metres.

Additionally, partnerships were being explored to potentially commercialise deep well 802.

The company said it was continuing to sell its oil to domestic and domestic mini refinery markets, fetching gross prices of $32 to $34 per barrel.

"With the return of well 142, production levels are moving in the right direction," said chairman Clive Carver in a short statement.

At 1046 GMT, shares in Caspian Sunrise were down 5.35% at 2.46p.

Reporting by Josh White for Sharecast.com.