Caspian Sunrise shares plummet as extreme cold hits drilling

Shares in oil and gas exploration company Caspian Sunrise fell almost 30% after it announced the effects of adverse weather on its operations at the BNG contract area in Kazakhstan.

The spudding of the Deep Well A8, which was initially delayed to January, has been is now projected to proceed in Q2 due to the extreme cold weather at the site while works at Deep Well A5 are being delayed by obstructions which the company has so far been unable to clear.

The recommencement of a 90-day flow test at Deep Well A5 was initially rescheduled to January but is now expected to take place toward the end of March subject to the clearing of carbonate rock obstructions and permitting required to begin coil tubing operations.

Clive Carver, Caspian's executive chairman, said: “Following the weather delays previously reported we have now resumed work at both A5 and 801. Management remains encouraged by the initial flow rate at A5 and the pressure and flows to the surface under natural pressure at Deep Well 801 providing confidence for hoped for positive outcomes for these wells.”

At well 801 a planned 445 metre side-track from a depth of 4,516 metres is underway which will see the company placed on a 90-day flow test.

Works at Deep Well A6 and 142 are subject to the completion of works at Deep Well 801 and Well 146 respectively, where a sixth well is to be drilled on the MJF structure which currently hosts four wells in aggregate producing at the rate of approximately 1,700 bopd.

As of 0854 GMT, Caspian Sunrise’s shares were down 27.82% at 9.60p.