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Clouds form for Caspian Sunrise
Caspian Sunrise (CASP:AIM) 9.2p
Loss to date: -4.7%
Original entry point: Buy at 9.5p, 30 March 2017
Mixed drilling results and a continuing wait for the Kazakh authorities to sign off on a key transaction with private company Baverstock are putting Caspian Sunrise (CASP:AIM) on the back foot.
The latest work on its BNG asset showed two of the six horizons targeted by the well are not considered worth pursuing with the remainder planned for testing.
If this testing shows up a significant quantity of oil a further two wells will be drilled later in 2017.
On its deep A6 well the company noted limited recoveries of oil had been possible and a chemical wash will be used to stimulate the flow of crude from the well.
The company expects approval on the Baverstock deal, which would see Caspian lift its interest in its flagship BNG licence from 58% to 99%, by the end of the second quarter of this year.
House broker WH Ireland keeps the faith with analyst Brendan Long reiterating a 23.3p price target and ‘buy’ recommendation and commenting the company is ‘poised for extraordinary value creation’.
Keep the faith for now. (TS)