5th Nov 2018 13:01
LONDON (Alliance News) - Oil & gas explorer Caspian Sunrise PLC on Monday said it expects to reach full production status at its MJF structure in Kazakhstan in the first quarter of 2019.
The MJF structure is located in Caspian Sunrise's BNG contract area in the west of Kazakhstan. In October, total oil production from the five wells at the MJF structure was 46,946 barrels.
When including production from the four wells at the South Yelemes structure - also located within the BNG area - total October production was 54,348 barrels of oil, an average of 1,753 barrels per day.
Under the existing licence at the MJF structure, production must be sold "by reference to domestic prices". Caspian Sunrise said in recent months its had achieved USD16 per barrel, net of costs, for domestic sales.
Once the company moves to full production status, it expects to achieve export sales, net of taxes and production costs, of between USD35 and USD40 per barrel.
A site for a new shallow production well to be drilled on the MJF structure, well 147, has also been identified and is to be drilled shortly after full production status is achieved.
As a result of work completed in early October, well 142 at the MJF structure returned to production at a rate of approximately 90 barrels of oil per day, with water content between 1% and 2% using a 5 millimetre choke.
Also at MJF, well 146 is undergoing workover operations, with a planned workover of well 808 once the workover rig at 146 becomes available.
A 90-day flow test of Caspian Sunrise's deep well A5 is scheduled to restart, having been restricted by a partial blockage, once obstructions have been cleared. Caspian Sunrise also entered into a contract for a further three deep wells, A8, A9, and A10.
The contract is with an undisclosed "leading international drilling company" and the first deep well, A8, is expected to spud in November.
Shares in Caspian Sunrise were flat at 8.00 pence on Monday.
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