Caspian Oil & Gas (ASX: CIG) is primarily focused on oil and gas exploration in the Kyrgyz Republic, Central Asia, where the company wholly owns the West Mailisu licence. Caspian Oil & Gas sells Romanian interest to focus on other projects Tuesday, January 31, 2012 by Christine Feary Caspian Oil & Gas (ASX: CIG) has sold its interest in a Romanian oil operation in order to focus its efforts on other projects and operations.
The company sold its 20% stake in the Parta block application in Romania for about A$427,000, which represents a reimbursement of its contributions to date.
Caspian decided to sell the interest as part of its rationalisation of assets and operations.
The oil and gas explorer has prospective oil lease holdings around the Fergana Basin in the Kyrgyz Republic and is investigating other opportunities in Central Asia.
In October 2011, the company revealed that fluid produced from the West Mailisu #2 well at its West Mailisu licence in the Kyrgyz Republic was likely to be entirely oil.
Oil was found within 8 metres of the surface, and when a progressive cavity pump could not lift the fluid to the surface, Caspian determined that little to no water was being produced.
At the time, the company said about 75 barrels of fluid were present in the hole. Caspian plans to begin production testing once appropriate equipment can be secured.
Initial estimates suggest there is a potential mean recoverable resource of 1 million barrels, with an upside case of 2.2 million barrels of oil within Bed III of the West Mailisu structure.
The West Mailisu prospect is strategically located adjacent to the Mailisu IV oil field, which has produced more than 42 million barrels of oil.
CIG Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
