Caspian Holdings Says Workover Program on Track

Caspian Holdings says that four (106, 107, 114, and 115) of the five wells worked over are now in production with oil production rates from these wells steadily increasing. This follows perforation and progressive opening of the wells announced Q4 of last year.

The most positive results have come from well 115 which is producing clean oil. Well 115 was previously categorised as dry. As a result of the positive test results on 115, well 116 will also now be perforated on the same level. Well logs together with the Company's geological model indicated that the oil pay in well 116 could be larger than well 115.

Well 107 has also come on stream with strong, increasing results at twice the rate than previously estimated by Schlumberger while wells 106 and 114 are broadly in line with expectations. The test on "dry" well 123 was negative – this well will now be perforated at the same level as Caspian achieved oil production from the old well 10.

Commenting on the initial results, Chairman Michael Masterman said, "It's a positive start to the new year, we now have seven (111, 112, 113, 106, 107, 114, and 115) of our nine drilled wells in production, and confidently expect production from an 8th well (116) based on the results achieved to date."

A further update on the workover results including stabilized production rates will be announced in February.