WRES.L Regulatory News (WRES)

24 Oct 2006 11:24

Caspian Holdings plc24 October 2006 24 October 2006 Caspian Holdings Plc ("Caspian" or "the Company") Positive Log Results from Well 119 Caspian Holdings Plc (AIM: CSH), the oil and gas production and explorationCompany in Kazakhstan, announces positive results from the drilling campaign atits Zhengeldy oil field. Analysis of open hole log results from the latest well119 show a net pay of 21.4 metres across 4 oil bearing zones. Well 119 was drilled to a depth of 330 metres in the centre of the Zhengeldyfield. Analysis of the open hole log results shows four oil bearing reservoirsbetween 210 and 319 metres. The combined Net Pay is 21.4 metres with average OilSaturation of 64% and average Porosity of 31%. The biggest pay of 8.1 m is across the best producer in the field, Sand 7.0(with top 267 m and base 282 m). The well has been cased and the productiontesting of this level will be conducted in November. During the months of September and October extensive workover operations havebeen conducted on eight wells including a number of the recently drilled wellsto improve on overall performance in the field. Work has been completed on wells118, 102, 103 and 109 and these are now being brought back into production.Workovers are underway or forthcoming on wells 113, 101, 114 and 104 and weexpect these wells will be back in production in early November. Taking thewells temporarily off line has reduced production rates for the period of theworkovers. Results for the September 2006 quarter are as follows: • Oil shipments to Karask down 8% to 17,245 barrels (18,718 barrels June Quarter) • Oil export sales to Primorsk up 200% to 21,600 barrels (7,200 barrels June Quarter) • Export revenue received up 215% to USD 1.3 million (USD 0.4m June Quarter) Field production is down as a result of the decline in production in well 103and the workover programme which has taken 8 wells off line. As previouslyreported, unlike other wells in the Zhengeldy field, production from Well 103had been previously driven entirely by reservoir energy (without assistance of adownhole pump). The well produced oil with small quantities of gas at high rateson an eruptive basis. A re-interpretation of open hole logs identifies a gas capabove an oil rim at the level where 103 is perforated and the currentperforation straddles the present gas-oil contact. The existing perforationswill be squeezed off and new perforations made only across the oil column.Future production from Well 103 will be through artificial lift like other wellsin the field to boost its production. Exports are significantly higher reflecting a full quarter of exports and thebenefit of high oil prices during the period. -Ends- Enquiries: Caspian Holdings Plc Hoodless Brennan Parkgreen CommunicationsDom Del Borrello Luke Cairns Justine Howarth / Ana RibeiroT: +44 (0) 20 7667 6331 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