Business
Operational and Financial Update
Operational and Financial Update.
About this update from Caspian Sunrise Plc
[{"type":"text","content":"\n \n \n RNS Number : 7423L\n Caspian Sunrise plc\n 04 May 2020\n \n \n \n Caspian Sunrise PLC\n (\"Caspian Sunrise\" or the \"Company\")\n \n Operational and financial update\n \n Introduction\n \n The Directors are pleased to update the market with news of progress at its flagship BNG asset together with details of measures taken to underpin the Company's finances.\n \n New Well 153\n \n On 27 April 2020, we announced that New Well 153, the second of the infill wells drilled at the MJF structure, was producing oil at the rate of approximately 200 bopd. We are now pleased to update the market with news that, as expected, Well 153 is currently producing at rates in excess of 500 bopd.\n \n New Well 150, the first of the MJF infill wells, continues to produce at rates in excess of 500 bopd.\n \n This increases aggregate daily production to in excess of 2,000 bopd with the capacity to produce up to 2,300 bopd once the licence upgrade is approved, which would allow full production to resume at the South Yelemes shallow structure.\n \n Ongoing development activities\n \n On 18 March 2020, in response to the uncertainties surrounding the impact of the Covid-19 virus, the Board announced its decision to suspend all operational drilling activities after the completion of the work then in hand.\n \n Following a review of the Group's financial position in light of the actions noted below the board has decided to continue to pursue on a controlled basis the development of the shallow and deep structures at the BNG Contract Area.\n \n Accordingly, the G50 rig used at New Well 153 will move to Deep Well A5, allowing the cracked tubing to be replaced and work to continue to bring that well into production.\n \n A G40 rig has already moved to the third site selected for infill drilling at the MJF structure to drill New Well 151. The well has been spudded and to date reached a depth of 12 meters. A decision on the pace at which the well is to be drilled is yet to be taken.\n \n Measures taken to underpin the Company's future\n \n Before the Covid-19 outbreak the Company was proud to be a low cost operator with low drilling, lifting and transportation costs and a record in recent years of maintaining overall G&A cash expenditure below $3 million.\n &nb...