The Board of Caspian Sunrise is pleased to update the market with progress at Deep Well A5, on the Airshagyl structure at the from the Company's flagship BNG Contract Area.
Deep Well A5
As previously announced the side-track from a depth of 3,796 meters successfully reached a depth of 4,405 meters without incident, which has become the well's new Total Depth.
Since then cementing has been successfully completed, the well extensively cleaned and subsequently perforated over a 63 meter interval from 4,331 meters to 4,394 meters.
We are delighted to report the well has flowed without artificial stimulation for 4 days, without interruption and with increasing quantities of oil being produced.
Production has been estimated to have steadily increased to the rate of some 1,500 bopd using a 12 mm choke, with further increases expected.
Impact on the Company
Oil produced from the Deep Wells at BNG will for the time being be sold by reference to domestic prices, which have been approximately $26 in recent months.
While it is still too soon to predict with certainty the level at which A5 might produce on a consistent basis the current rate of production more than doubles at a single stroke the Company's total production from its successful MJF wells.
Work continues on the three other deep wells already drilled with the intention of bringing them into production in due course.
We are preparing to commence a formal 90 day flow test, following which we plan to instruct Gaffney Cline to help assess the quantity of reserves associated with the Airshagyl structure.
Clive Carver, Executive Chairman said
"This is the result we have been working to achieve for a long time.
While we need to be careful not to get over excited, as it is possible the continuous flows exhibited over the past 4 days might be interrupted or reduced as happened before, the strength of the flows and the uninterrupted 3 day period lead are extremely encouraging.
They lead the Company's management to believe Deep Well A5 will be a mainstay of the production expected over the coming years from the large quantities of deep oil believed to be present on the Airshagyl structure. "