WRES.L Regulatory News (WRES)

16 Feb 2006 10:59

Caspian Holdings plc16 February 2006 16th February 2006 AIM: CSH Caspian Holdings Plc ("Caspian" or "the Company") Workover and production update - production up 35% Caspian Holdings (AIM:CSH),the oil and gas exploration and production Companyfocused on shallow fields in Kazakhstan announces a 35% increase of productionrates as the Zhengeldy workover programme begins to show results. As a result of the initiation of the workover programme carried out in December2005, the results are starting to flow through and oil flow rates can beexpected to increase further during Q1 of March 2006 Monthly productionincreased 35% from 2,400 barrels in December to 3,240 barrels in January - amonth of exceptionally cold weather that shut down many nearby fields. Totalproduction from wells 111, 112, 107, 106, and 113 is currently running a totalof approximately 120 barrels a day (with wells 115 and 114 temporarily offlinefor further oil flow rate enhancement). The second stage of the workover programme is anticipated to be completed by theend of February during which an additional 5 metres of perforation will be shotin Well 112 to exploit the larger net pay identified in that well. Newperforations will also be shot in Wells 115, 116 and 123 to which are expectedto boost production rates. Commenting on the initial results, Chairman Michael Masterman said, "The oilproduction base has begun to build steadily. By March we have the potential toshow monthly production figures for all of the 9 new wells drilled in 2005. Wecan then build on this production level through the 2006 drilling programme. " The 2006 drilling program is proceeding on schedule (see www.caspianoil.co.uk/projects for update). -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 This information is provided by RNS The company news service from the London Stock Exchange