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Caspian Sunrise Shares Fall as Payment Delay Impacts Business

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Andrew R. Michaud

• August 01, 2023

Shares of Caspian Sunrise took a hit on Monday as the company reported a delay in receiving payments for the sale of half of its shallow-water drilling vessel. Additionally, the company announced that it has scheduled works at three of its wells that are currently not contributing to production.

At 0811 GMT, shares were down 0.47 pence, or 13%, at 3.15 pence.

Delayed Payments for Caspian Explorer Sale

Caspian Sunrise, an oil producer focused on Kazakhstan, revealed that it is currently in talks with alternative purchasers for 50% of its drilling vessel, Caspian Explorer, as it has not yet received the agreed $22.5 million payment.

Efforts to Boost Production

In order to increase production levels, Caspian Sunrise stated that it is undertaking works at its MJF shallow wells 141, 142, and 145 which are expected to bring them back into production. Additionally, coil tubing work is being carried out at Deep Well 802 to clear fluids blocking the well. This work is expected to be completed by the end of September.

Positive Outlook for Production

Despite the current setbacks, Caspian Sunrise remains optimistic about its production levels. The company anticipates that by the end of the year, production will surpass the current level of approximately 1,700 barrels of oil per day, based on its work program.

License Renewals and International Sales

Caspian Sunrise plans to apply for the renewal of its licenses expiring in 2024 for Airshagyl and Yelemes Deep. These two deep structures at the BNG contract area would be granted on a long-term full-production basis, allowing for international sales.