Caspian Sunrise makes first sale from BNG contract area

Oil and gas exploration and production company Caspian Sunrise has inked a contract with an unnamed international oil trading group for the sale of 29,000 barrels of oil in September.

The sale, Caspian's first from its BNG contract area, will be at a fixed price to the prevailing brent oil price at the time, with the company expecting to receive approximately twice what it would've on the domestic market.

Elsewhere, Caspian noted that wells A5 and A8 would be placed on a 90-day flow test before the end of the current quarter.

At A5, the AIM-listed group expects the side-track to be completed by the end of September 2019, at which point it would look to perforate the well, while at A8, Caspian said it would stop drilling the well at its current depth of 4,520 meters. Caspian will now perforate the well across a 40-metre zone in the 52.5-metre interval of highest prospectivity.

Caspian expects perforation to take place "in the next few weeks".

Chairman Clive Carver said: "Our first international sale of oil is another milestone in the development of the BNG contract area.

"We look forward to reporting on the developments at Deep Wells A5 & A8, both of which could be on a 90-day flow test before the end of the current quarter.""

As of 1350 BST, Caspian Sunrise shares had climbed 5% to 8.82p.