WRES.L Regulatory News (WRES)

14 Jan 2009 08:43



Caspian Holdings Plc

("Caspian" or the "Company")

14 January 2009

Caspian wins Initial Kazakhstan Court Case

Caspian Holdings (AIM:CSH), the oil and gas development company with assets in the USA and Kazakhstan announces that the Specialized Regional Economic Court of Astana City, Kazakhstan has ruled in favour of Company's wholly owned subsidiary Taraz LLP in its recent court case with the judgement setting aside the order of the Minister of Energy and Mineral Resources. However, the judgement has been appealed by the Ministry of Energy and Mineral Resources and the Prosecutor. The appeal is scheduled for 21 January 2009. Caspian and Taraz LLP will strongly defend their contract rights and keep the market updated as they have further information available.

The judgement of the Specialized Regional Economic Court of Astana City, dated 27 November 2008, stated that:

"Based on the article 217221 of Civil Code of the Republic of Kazakhstan, the Court decided to satisfy the claim of Taraz LLP and recognize as illegal and cancel the Order of the Minister of Energy and Mineral Resources of the Republic of Kazakhstan № 197 of 23rd  July 2008 "About the cancellation in unilaterally way of the Contract № 385 dated 14th December 1999 for production of hydrocarbons on the oil field Zhengeldy, block ХХIV -13-F (partially) in Kysylkuginskij district, Atyrau region due to essential violations of obligations, provided by the Contract and by the Work Program - and termination of the License AI № 1533 (oil) of 27 May 1999 for the right for the subsoil use in the Republic of Kazakhstan"".

In summary the court judgment found that:

Taraz LLP exceeded its financial contract obligations;

There are no grounds to claim that field development was unsafe or not rational; and

The development plan of 3-4 December 2003 remains effective. 

A further announcement of the outcome of the appeal will be made in due course.

-Ends-

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