Caspian Energy said it had produced positive results on two of its existing wells in Kazakhstan.
The company’s subsidiary, Aral Petroleum, has just completed a period of test production at the East Zhagabulak field in Aktobe Oblast.
After 10 months of inactivity, operating staff performed basic geological and mechanical tests which involved re-opening the wells and testing oil pressure.
The test demonstrated a capability to resume production and a total of 3,750 barrels of oil were produced during the tests.
Tests had previously been suspended in the first quarter because of the downturn in oil price.
The board of directors has now approved the resumption of limited production of about 750 barrels of oil per day.
Michael Nobbs, chairman of the Board, said: “Oil production by Aral will produce marginal but still positive operational cash flows.
“Although higher crude oil prices are required to result in meaningful contributions to Aral’s fixed costs and future capital expenditures, it is important for Aral to get back to production
to secure its licences and maintain positive relations with the Kazakh government and the local community.
“The net sales proceeds will make a contribution to overhead, and we will also be well positioned to ramp up production in the future if a sustained increase in the price for our crude oil materialises.”
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