Caspian Holdings Reports Commercial Flows from Kazakh Well

Caspian Holdings Plc, the oil and gas production and exploration Company in Kazakhstan, reported commercial flows of oil at approximately 35 barrels a day from its recently drilled well 121 during the second half of December 2006.

Following the successful testing of well 121, the Company will focus on increasing production and profitability from its existing wells prior to commencing its next drilling program mid-year.

Production for the quarter ending 31 December 2006 was 11,630 barrels. Production was adversely affected during the quarter as a result of workovers of a number of previously productive wells including well 103. Remedial work is continuing on well 103 and well 112 with expectations that these wells will be in production in late February 2007.