Salt Lake Drilling Results Delivers Largest Flow Rate to Date

Caspian Holdings says that drilling results for well 103 on the dry Zhengeldy salt lake has produced very strong test flow results.

Well 103 was drilled to a depth of 302 meters in 9 days.

Two oil bearing levels in well 103 have been identified from log interpretations

  • 8 meters from 176 meters to 184 meters
  • 6 meters from 256 meters to 262 meters

Perforation and testing of the deepest level has produced very strong results with the well flowing at a continuous flow test rate of 120 barrels of oil per day – by far the largest flow test rate on the field to date. During the test a tested open flow rate of 230 barrels a day was achieved.

Well 103 will continue in production and during May we will determine the optimal operating flow rate. An update on the overall results of the workover program and the new wells drilled in 2006 will also be provided in May.

Commenting and the results from well 103, Executive Chairman Michael Masterman said "Tested flows from this well are nearly 4 times the levels achieved in our previously best performing wells. The results give us a strong direction to drive the next phase of drilling forward as well as the potential to significantly step up production rates."

"This is our first well on the previously undrilled dry Zhengeldy salt lake which covers approximately half our current license area. It's a great exploration and production result."