TIDMCASP
RNS Number : 4396P
Caspian Sunrise plc
29 May 2018
Caspian Sunrise PLC
("Caspian Sunrise" or the "Company")
BNG Deep Well operational update
3A Best acquisition update
Operational update
Deep Wells
Deep Well 801
As previously announced our plan to bring Deep Well 801 into
production was by drilling a side track of between 450 - 500 meters
from a starting depth of 4,501 meters.
Having identified potential oil bearing (net-pay) intervals
covering in aggregate 121 meters so far during the drilling of the
side-track, we have decided to stop the side-track at a depth of
4,851 meters and, after running and cementing a 5-inch liner to the
full depth of the side-track, to test the well.
Four potentially oil bearing intervals have been identified
during drilling and supported by mud log data. The first of 6
meters between 4,535 and 4,541 meters; the second is of 20 meters
between 4,554 and 4,694 meters; the third is of 59 meters meters
between 4,635 and 4,694 and the fourth is of 36 meters between
4,812 and 4,848 meters.
The pressure in Well 801 remains high indicating good
connectivity. As the side-track has been drilled using lower
density drilling mud we expect the task of getting the well to flow
to allow testing to commence should be easier than previously
drilled deep wells.
Deep Well A5
At Deep Well A5 work continues to prepare the mobilised rig to
remove the pipe from the well and thereby clear the obstruction,
which resulted in a suspension of the 90-day flow test towards the
end of 2017. We expect to commence operations in the near future
once the drilling mud in use at Deep Well 801 becomes
available.
Pressure in the well remains high at 400 bar at the wellhead,
which suggests there is still good communication throughout th
length of the well.
Deep Well A6
Our plan with Deep well A6 remains to re-perforate the well
using more powerful explosive charges.
The drill pipes to be used in this operation are currently in
use at Deep Well 801 and work at Deep well A6 will not commence
until the pipes at Deep Well 801 are released.
Acquisition of 3A Best
SPA signed
Further to the announcement of 31 January 2018, the Company is
pleased to confirm that the Sale and Purchase Agreement for the
conditional acquisition of 100% of the shares of 3A Best Group JSC
("3A Best") (the "Acquisition") for a consideration of $24 million
to be satisfied by the issue of 149,253,732 shares at an issue
price of 12p per share has been formally entered into. Completion
of the Acquisition is now dependent upon the satisfaction of a
number of post signing conditions, including the issuance of a new
licence.
Background
3A Best owns a Contract Area of 1,347 sq km located close to the
Caspian port city of Aktau in the Mangystau Province of Kazakhstan.
The Contract Area is adjacent to and runs under the commercially
successful Dunga field, which was discovered in 1966 and developed
by Maersk Oil.
Based on an assessment of the geology Caspian Sunrise's
technical team believe some of the geological characteristics of
the Dunga Contract Area are also present at 3A Best. Additionally
they believe the area 2,500 meters and below the Dunga Contract
area, which forms part of the 3A Best Contract Area, also indicates
the likely presence of oil.
490 sq km of 3D seismic has been shot. 1,327 linear km of 2D has
been digitised and reprocessed. C2 reserves, using the Soviet
system of classification, of 3.67 million tonnes (approximately
26.8 mbbls) have been assigned to the 3A Best Contract Area.
Two wells have been drilled on the Contract Area in recent
years, both encountering water and signs of oil & gas, although
neither was commercially successful.
For the year ended 31 December 2016 the loss after tax was $1.4
million.
Caspian Sunrise would, by completing the acquisition of 3A Best,
become responsible for the outstanding work programme commitment
represented by the drilling of one well to a depth of 3,000 meters
at an estimated cost of up to $2 million.
Related Party Transaction
As a result of the shareholdings in 3A Best of the family of
Kuat Oraziman, the Chief Executive Officer of Caspian that holds
one third of 3A Best and of Kairat Satylganov, its former Finance
Director who holds one third of 3A Best, the Acquisition is
considered a related party transaction under the AIM Rules. The
independent directors of the Company in respect of AIM Rule 13,
being Clive Carver and Edmund Limerick, consider, having consulted
with WH Ireland, that the terms of the Merger are fair and
reasonable insofar as Shareholders are concerned.
Upon satisfaction of the outstanding conditions, which
principally relate to the issue of a new licence, Caspian Sunrise
will issue and seek listing for the new Caspian Sunrise shares once
the other conditions for completion have been satisfied.
Following the issue of these consideration shares the total
number of shares then in issue would then be 1,818,927,552, of
which the family of Kuat Oraziman, would hold 795,457,858 shares
representing 43.73%
Comment
Clive Carver, Chairman said:
"The identification of, in aggregate, 121 meters of potential
oil bearing intervals in drilling the 801 side-track allows us to
move to the test phase sooner than was expected."
The lower density drilling mud used on this side-track should
make bringing the well into test production an easier proposition
than with our earlier deep wells where far denser drilling mud was
the principal issue."
Ends
Caspian Sunrise PLC
Clive Carver
Executive Chairman +7 727 375 0202
WH Ireland, Nominated Adviser
& Broker
James Joyce
Jessica Cave
James Sinclair-Ford +44 (0) 207 220 1666
Yellow Jersey PR
Tim Thompson
Henry Wilkinson +44 (0) 203 735 8825
Qualified Person
Mr. Nurlybek Ospanov, Caspian Sunrise PLC's Chief Geologist /
Technical Director who is a member of the Society of Petroleum
Engineers ("SPE"), has reviewed and approved the technical
disclosures in this announcement.
This announcement has been posted to:
www.caspiansunrise.com/investors
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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END
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