good oil shows announced

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
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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