11 June 2008 The Manager Company Announcements Office ASX Ltd 4th Floor, 20 Bridge Street SYDNEY, NSW 2000 Dear Sir
GOOD OIL SHOWS ANNOUNCED
Caspian Oil & Gas’s Mailisu III #5 well has delivered good live oil shows after having been drilled to a total depth of 746m. The well penetrated limestone Beds V & VII at depths of 673-691m K.B. respectively, with the oil shows described from Bed Vb and VIIa. Wireline logs have been run and the well has been cased to allow production testing. The Mailisu III oil field is considered a long-term but low-rate production target. Drilling Details Well Name Caspian Interest Type Location (Tenement) Latitude / Longitude Current Depth (m RT) Spud Date Current Activity COG Mailisu III #5 70% Oil appraisal Mailisu III Block 41° 14’ 37.45”N / 72° 27’ 1.55”E 746m 14/5/2008 Cementing casing Summary of Results to Date Well Name Result Current Status Comments Future Mailisu III #1 Oil to surface after acid treatment Producer Initial flow rates not sustained – now running at approximately 5bbls/per day Continue with production Mailisu III #2 Gas and oil shows Cased & Suspended While the lower gas zones are accessible, a poor cement job over the upper gas sections requires remediation work by a cement unit before production testing. Future gas producer? Mailisu III #3 Well flowed oil to surface while drilling Perforated bed VII - Flowing water Awaiting plug to isolate water interval Future oil producer Mailisu III #4 Oil in Bed V and VII Perforated both zones Well on pump – cleaning up – rate to be determined Oil producer Mailisu III #5 Oil in Bed V and VII Cased & Suspended Expect to complete as oil producer Future oil producer 1 F:\PUBLIC\Caspian Oil & Gas\ASX\2008\ASX110608 Activity Announcement CIG.doc F:\PUBLIC\Caspian Oil & Gas\ASX\2008\ASX110608 Activity Announcement CIG.doc 2 Future work COG Mailisu III #5 is the fifth well in the appraisal programme testing the reservoir potential within the Mailisu III oil field. The next well in the program will be West Mailisu #1, which will test the presence of oil on the western flank of the Mailisu III structure, some 3km west of earlier drilling. This is considered to be a higher risk well, but if successful, it would significantly expand the resource potential of the field. Yours faithfully, GRAEME PARSONS Executive Director & Chief Operating Officer • RT = Rotary Table • K.B = Kelly Bushing West Mailisu #1 Location Map – Figure 1
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