WRES.L Regulatory News (WRES)

21 Jan 2005 07:00

Caspian Holdings plc21 January 2005 21 January 2005 CASPIAN HOLDINGS PLC ("Caspian" or "The Company") Commercial Oil Discovered in first 3 post IPO Wells Further to the announcement on 29 November 2004, Caspian Holdings Plc (AIM:CSH), the oil and gas exploration and development company which focuses onKazakhstan and the Caspian sea, has successfully drilled and brought intoproduction the first three wells in a seven well programme. Each of the new wells - 114, 112 and 111 and the previously drilled 113discovered and confirmed commercial oil reserves in the Jurassic level. Keyresults are set out below: Well 113 (pre IPO) • Depth 630 metres • Completed Aug 04 • Oil pay 13 meters • 3 Levels: 308-302 m, 347-344 m, 271-267 m Well 114 • Depth 600 metres • Completed Nov 04 • Oil pay 9 meters • 2 Levels: 348-354 m, 271-274 m Well 112 • Depth 400 metres • Completed Dec 04 • Oil pay 16 meters • 2 Levels: 229-233m, 299-311 m Well 111 • Depth 400 metres • Completed Jan 05 • Oil pay 13 meters • 4 Levels: 211-212 m, 219-220 m, 225-233 m, 303-306 m The four new wells have been perforated at the lower levels to generate initialproduction volumes. Well 123 drilled in October 2004 on the flanks of thestructure, was not brought into production due to high shale content. Caspianexpects to significantly increase production rates as the shallower depths ineach of the wells are brought into production and the warmer weather in Spring(currently up to 40 degrees below Celsius) allows construction of new flow linesand field equipment. On 20 December, 2004 Caspian entered a contract to drill 5 new wells withKazakhmunai Service. As a result of this new contract and optimisation of thedrilling program the capital costs of the completed wells (includingperforation, pumps and wellheads) are averaging about $320,000 per well. A wellis being drilled and completed once every three to four weeks and the drillingprogram is on schedule in April 2005 Michael Masterman, Executive Chairman of Caspian, stated: "The three new wellsin Zhengeldy together with the earlier well no 113 confirm commercial oilreserves in the Jurassic section of Zhengeldy. The next stage of the drillingprogram will move to the deeper Triassic sections of the reservoir." - Ends - For further information, please contact: Caspian Holdings Plc Hoodless Brennan Parkgreen CommunicationsMichael Masterman Luke Cairns Justine Howarth / Ana RibeiroT: +447791288381 T: +44 (0) 20 7538 1166 T: +44 (0)20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange