Caspian Holdings Completes First Phase of Zhengeldy Field Workover Program

Caspian has completed the first stage of the workover program at the Zhengeldy oilfield in Kazakhstan. Under this program cement repair jobs have been completed on wells 106 and 107 and new perforations have been shot in wells 107, 114, 115 and 123.

Oil production rates from these wells will be tested during December. In the event that well 115 tests positive flow rates, well 116 will also be perforated at the same level.

Following identification of larger net pays in producing wells 111 and 112 increased perforations will be shot in these wells in January 2006.

Caspian Holdings is still awaiting a decision from the Kazakhstan Ministry of Energy on its extension license application, which, if approved will open up new expansion opportunities for the Company. The market will be updated when a decision is confirmed.