22nd Dec 2021 13:55
(Alliance News) - Shares in Caspian Sunrise PLC were sharply higher on Wednesday after the oil and gas company reported strong production in its shallow and deep wells.
Shares in Caspian were up 17% at 4.11 pence on Wednesday in London.
At Caspian's shallow wells, the London-based company said well 153 on its MJF structure has commenced production at the rate of around 830 barrels of oil per day. This additional product has increased overall production to around 2,300 barrels of oil per day.
Well 154 has continued to produce at the rate of around 600 barrels of oil per day, the company added. A new well - well 152 - will be the next to be drilled on the MJF structure.
Existing wells on its South Yelemes area have been approved for an upgrade to their export status. This will allow the wells to be reopened with an expected 300 barrels of oil per day addition to production volume, the company explained.
At its deep wells, Caspian said well A8 has been drilled and logged without incident while work on deep wells A5, A5 and 801 had remained on hold.
Caspian said that deep well A7 on the Airshagyl structure is expected to be spudded before the end of the month and deep well 802 is planned to be spudded early next year.
The current high oil price has "transformed" the company's financial position compared to 2020, Caspian explained.
Once its deep oil wells are completed, assuming the price continues at existing levels, the company said it expects cash flows from operational activities to "improve significantly".
Chair Clive Carver said: "Production volumes form the shallow structures are expected to increase in the near future as the export licence is received for the shallow South Yelemes structure and we continue to redrill existing wells using the horizontal techniques that are proving so successful. We also look forward to the results from the perforation at Deep Well A8."
By Heather Rydings; [email protected]
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