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. F:\PUBLIC\Caspian Oil & Gas\ASX\2008\ASX 120208 Activity Announcement CIG.doc 1 F:\PUBLIC\Caspian Oil & Gas\ASX\2008\ASX 120208 Activity Announcement CIG.doc 2 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.
CIG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
