Caspian Increases Irvine Field Lease Holding, Set to Produce from Barnett

Caspian Holdings has increased its lease holding in the Irvine oilfield to over 200 acres with the signing of a new 160 acre Billings lease. In addition, the Company has received the key permits to commence oil production and sales from its existing 8 wells in its first lease - Barnett - in the field.

Caspian owns a 50% interest in the Irvine field through its shareholding in Black Gold of Kentucky which holds the Barnett lease and the Billings lease.

With the permits now issued, following a slight delay and bonds in place, Black Gold expects to commence production and oil shipments from the Barnett lease in October 2008.

Commenting on the postive steps forward in Kentucky, Caspian Chairman Michael Masterman stated, "The combination of a significant increase in our acerage position and issue of the required permits for oil production, is a great step forward. We look forward to maiden oil production from our leases in the Irvine oilfield."