WRES.L Regulatory News (WRES)

18 Jul 2006 10:58

Caspian Holdings plc18 July 2006 18 July 2006 Caspian Holdings Plc ("Caspian" or "the Company") Caspian increases oil shipments by 100% and announces positive results for Wells 105 and 104 Caspian Holdings (AIM: CSH), the oil and gas production and exploration Companyin Kazakhstan announces a Quarterly oil shipment increase of 100% from 9,274barrels in the March Quarter 2006 to 18,718 barrels in the June Quarter 2006,reflecting the results of the workover programme and this year's drillingprogramme. In total, 13 wells have been drilled and testing completed with 12being productive - a 92% success rate. At the current time, 11 wells are inproduction at a rate of approximately 300 barrels a day. Positive drilling results from Wells 105 and 104 follow: Well 105 was drilled to a depth of 578 metres on the edge of the Zhengeldylicence area some 500 metres from the main cluster of wells. The well has beensuccessfully perforated and tested and is currently producing approximately 35barrels a day of clean oil with 5% water from the 226-228 metres Jurassic level.Production rates are expected to increase over the current September quarter. Well 104 is the latest step out well to be drilled and reached a target depth of710 metres in early July. Evaluation of electronic log results indicated oilstringers at Triassic depth of 600 metres and a good shallower oil pay zone of 4metres at 175 m. This shallow zone has been perforated and testing is underway.Production test rates will be updated in September following production testing.Well 104 was the first well to be drilled in the unexplored Block 1 - both theTriassic and Shallower oil leads will be actively pursued. Results of 2006 Drilling programme Well Depth Drilling Oil Net Pay Oil Porosity Tested rate metres Days Zones metres Saturation % % bopd 101 455 22 2++ 8 65% 30% 45 102 400 16 2 10.8 90% 30% Under test 103 302 13 2 14 90% 30% 120 105 575 20 2 7 80% 30% 35 104 710 30 1 4 80% 30% Under test The drilling programme will now move back to the salt lake to drill Well 109 tothe west of the successful Well 103. Well 109 will explore the deeper levels ofthe field as well as seeking to add oil production levels between 100 and 400m. Commenting on the results, Michael Masterman, CEO of Caspian said: "The newwells 104 and 105 were step out wells and confirm oil reserves and potentialproduction in a significantly larger area than we have drilled to date. We willnow move back into the centre of the licence to drill Well 109 on the salt lakeand expect to follow this with another two infill production wells to boost oilproduction. " -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