WRES.L Regulatory News (WRES)

26 Sep 2008 11:48



26 September 2008

CASPIAN HOLDINGS PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2008

Caspian Holdings (the "Company"), the oil and gas development company with assets in the USA and Kazakhstan, announces its interim results for the 6 months to 30 June 2008. 

Highlights

Acquisition of Pine Meadows Lease

Mixed Progress on the restart of production on Zhengeldy oil field

Operating loss reduced by 55% to £299,449 (2007 loss £663,268) 

Events since the balance sheet date 

Acquisition of 50% interest in Black Gold of Kentucky and following expansion of Black Gold Lease Holdings in Irvine Field

Geological Study on Pine Meadows Lease completed

In first half of 2008 Caspian Holdings decision to significantly diversify its asset base towards the United States is proving to be a successful and timely decision.

Extracts of the interim statements appear below and a full version is available on the Company's website www.caspianoil.com

Enquiries:

CASPIAN HOLDINGS Plc

CHAIRMANS STATEMENT TO THE INTERIM RESULTS

FOR THE SIX MONTHS TO 30TH JUNE 2008

Over the last 6 months Caspian Holdings Plc has expand the number of oil development fields in portfolio and diversified its business with acquisition of the Pine Meadows lease in California, USA and, post the review period, through its acquisition of a 50% interest in Black Gold of Kentucky, owners of 2 oil production leases in the Irvine field, Kentucky, USA.

During the six month period Zhengeldy oil production was limited as the field was shut down at the beginning of the year pending resolution of regulatory issues with respect to exports and 2008 work program approval. Following a change of local management, the Company made solid progress in achieving a series of approvals necessary to restart production and exports. In particular ZapKazNedra (The Ministry of Energy and Mineral Resources Regional Competent Authority) signed off the work program and restart of production subject to Committee of Geology approval. The Committee of Geology approved restart of production subject to Central Commission approval. Subsequent to the end of the half year, the Secretary of the Ministry issued a letter purporting to cancel the Zhengeldy Subsoil Contract. The Company has taken legal advice and expects to be able to overturn the Ministry letter and reinstate full Zhengeldy licence conditions. Until this is achieved the Company has deemed it prudent to carry a general provision of £1m against the Zhengeldy assets.

The Company expects a significantly more positive second half of 2008 with production expected from our leases in the Irvine field in Kentucky and good progress in Pine Meadows. There also remains the prospect, subject to regulatory outcomes of a return to production and exports from the Zhengeldy field.

The interim financial results reflect a period of very limited production and no exports from the Zhengeldy field in Kazakhstan. Costs have been reduced in line with activity. For the six months to 30th June 2008 the Operating Loss before taxation, foreign exchange gains and adjustments/provisions was £376,432 (2007 Loss £662,268). The Loss after taxation (including the provision of £1m) was £1,176,224 (2007 loss £433,145). 

Michael Masterman

Chairman

25th September, 2008