announcement

drilling to re-start next week

DRILLING ACTIVITY ANNOUNCEMENT
Weekly Activity
Following a promising initial liquid flow rate of an estimated 20m3/day (~ 130bbl/day) at COG Mailisu III # 1 a 25 cubic metre tank has been installed on the lease to enable further testing this week.
While the cold conditions have restricted drilling activity, the crew and equipment has been active on working-over several existing shallow oil wells owned by Caspian on the Ashvaz licence area with the intention to restart production from, or increase the productivity of, the wells. These wells were obtained by Caspian with the purchase of the leases.
The sub-zero temperatures of the past 6 weeks are beginning to retreat and by next weekend temperatures (see below) are predicted to improve sufficiently to allow drilling to re-commence at COG Mailisu III #3. This well is designed to further test oil targets in the Palaeogene limestone reservoirs and is Caspian’s third in its planned eleven well drilling programme in the northern Fergana Basin, Kyrgyz Republic.
Details
Well Name
Caspian Interest
Type
Location (Tenement)
Latitude / Longitude
Current Depth (mRT)
Spud Date
Current Activity
COG Mailisu III #3
70%
Oil / Gas appraisal
Mailisu III Block
41.257008°N / 72.45542°E
28m
2/1/2008
Waiting on weather
Background
The reservoir potential within the Mailisu III oil field is being tested by a series of wells, initially located in the northern portion of the Mailisu III licence. The main oil reservoir targets are the limestone Beds V & VII.
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Mailisu III # 3 is planned as a deviated well with the surface location some 20m SE of Mailisu III #2. The bottom-hole location is about 200m SE of the surface location with the planned TD approximately 750m. The purpose of the well is to establish the productivity of Beds V & VII downdip from the # 2 location.