WRES.L Regulatory News (WRES)

18 Sep 2006 11:04

Caspian Holdings plc18 September 2006 18 September 2006 Caspian Holdings Plc ("Caspian" or "the Company") Caspian continues finding oil - update on wells 102, 104, 109 and 118 Caspian Holdings Plc (AIM: CSH), the oil and gas production and explorationCompany in Kazakhstan, issues a further set of positive results from thedrilling campaign at its Zhengeldy oil field. Commercial oil production rateshave been tested in wells 102 and 104 and the interpretation of log results onrecently drilled wells - 109 and 118 - shows good oil pays. Well 102 was perforated and tested at the interval, 178-180.5 metres and iscurrently producing 25 barrels of oil per day ("bopd"). Well 104 was perforatedand tested in early August and yielded production rates of 16 bopd. Well 109 was drilled to a depth of 734 metres in the south of Zhengeldy dry saltlake. Analysis of the open hole log results shows a good oil bearing reservoirbelow 170 metres with a gross pay of 13.9metres and a net pay of 5.1metres.Porosity in this well is high, at 35%, with oil saturation of 58%. Well 118 was drilled to a depth of 400 metres in the middle of the Zhengeldy drysalt lake, near the successful Well 103. Analysis of the open hole log resultsshows potentially two oil-bearing reservoirs between 255metres and 355metres.The best level is at 255metres with a gross pay of 4.9metres and a net pay of3.1metres with porosity of 32% and an oil saturation of 52%. It appears thatthere is a gas cap above the oil bearing level which should support higherproduction rates. Wells 109 and 118 will be perforated and tested during September and October. Detailed re-evaluation of logs indicates a gas cap in the Jurassic level inblock 2 covering wells 103, 113 and 118. The gas cap can be used to sustainproduction rates from this block. As a result Well 103 will be reperforated inthe oil bearing reservoir below the gas cap. There will be short term reductionin production during the work over process. With the arrival from Schlumberger, of our new operations manager, EssienUmoren, we are in the process of conducting an extensive petrophysical review ofwell data with a view to identifying new production zones and increasingproduction. An updated summary of the 2006 wells is shown below. Overall thefield has very good porosity and good oil saturation. Results of 2006 Drilling programme Well Depth Drilling Oil Zones Net Pay Oil Saturation % Porosity % Tested rate metres bopd metres Days 101 455 22 1 8 42% 31% 45 102 400 16 2 9.5 70% 29% 25 103 302 13 2 5.8 63% 29% 120 104 710 30 1 2.7 55% 27% 16 105 575 20 2 5 60% 28% 35 109 734 25 1 5.1 58% 35% TBT 118 400 14 2 3.1 52% 32% TBT Commenting on the results, Michael Masterman, CEO of Caspian said: "These recentresults from Well 109 and 118 demonstrate that we are consistently finding oilfrom our 2006 drilling programme and are building a solid production capacity." ENDS Enquiries: Caspian Holdings Plc Hoodless Brennan Parkgreen CommunicationsMichael Masterman Luke Cairns Justine Howarth / Ana RibeiroT: +44 (0) 7791288381 T: +44 (0) 20 7538 1166 T: +44 (0) 20 7493 3713www.caspianoil.co.uk Mr Dietmar Greil, Executive Director and Chief Operating Officer of CaspianHoldings Plc is a "qualified person" with over 20 years experience inExploration and Development in the oil industry. This press release has beenprepared under Mr Greil's supervision. This information is provided by RNS The company news service from the London Stock Exchange