REG - Caspian Sunrise plc - Operational Update

Caspian SunriseAnnouncement

22/12/2022 08:15

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RNS Number : 6112K  Caspian Sunrise plc  22 December 2022

22 December 2022

 

Caspian Sunrise PLC

 

Operational Update

 

The Board of Caspian Sunrise are pleased to provide this year end operational
update.

 

Operations

 

Deep Well 802

Drilling has reached a depth of 3,614 meters without incident and has paused
to allow approximately 300 meters of casing to be laid.

 

The salt layer is believed to be bounded between depths of 3,580 meters and
3,860 meters. The oil bearing interval previously encountered was at a depth
of 3,900 meters. We intend to drill to a depth of 4,100 meters before
perforating and testing the well.

 

Based on current timelines we would expect drilling and testing to be
completed by the end of January 2023.

 

Other deep wells

A new G70 rig, on which we expected to complete the purchase in the next few
weeks, will be used to resume drilling at Deep Well A7, which was paused at a
depth of 2,150 meters.

 

The G50 rig in use at 802 will, when free, be used to drill the planned side
track at Deep Well A5.

 

The approach to already drilled Deep Wells A6 and 801 will be decided once the
results from Deep Wells A5, A7 and 802 are available.

 

Shallow wells

Work continues to bring wells 141 and 142 back into production and is expected
to be completed in Q1 2023, following which if successful production is
expected to return to much closer to the previous approximately 4,000 bopd.

 

Well 155, a new shallow well on the MJF structure, is expected to be spudded
in Q1 2023 and drilled to a planned Total Depth of 2,500 meters.

 

Production and pricing

Production without any contribution from shallow wells 141 and 142 or from
deep well 802 remains at approximately 2,400 bopd.

 

All production continues to be sold on the domestic market, including to mini
refineries. That there are no international sales is directly as the result of
the continuing discounts for oil emerging from the Russian pipeline network,
even though sanctions do not apply to oil produced in Kazakhstan and
transported via the Russian pipeline network.

 

Block 8

Due diligence work continues with the expectation that, provided there are no
material adverse findings, the option to  acquire Block 8 will be triggered
in Q1 2023 and the acquisition would complete later that year.

 

Caspian Explorer

The Group is in separate discussions to charter the Caspian Explorer in 2023
and 2024. In both cases any resulting charters would be to drill wells in the
Caspian Sea rather than for safety related purposes where the charter rates
are much lower.

 

Dividends

The Company has now made two dividends declaration of £1 million each.
Payment for the first dividend should be with all shareholders for whom either
the Company or its registrars Link have full payment details. The payment date
for the second dividend will be 16 January 2023.

 

Ends

 

Qualified person

 

Mr. Assylbek Umbetov, a member Association of Petroleum Engineers, has
reviewed and approved the technical disclosures in this announcement.

 

Contacts

 

Caspian Sunrise PLC

 

Clive Carver

Chairman
            +7 727 375 0202

 

WH Ireland, Nominated Adviser & Broker

 

James
Joyce
+44 (0) 207 220 1666

James Bavister

Andrew de Andrade

 

This announcement has been posted to: www.caspiansunrise.com/investors
(http://www.caspiansunrise.com/investors)

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

 

 

 

 

 

 

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