CSH Civitas Social Housing Plc

RNS Number:6787X
Caspian Holdings plc
31 January 2006


31st January 2006

AIM: CSH

                              Caspian Holdings Plc

                          ("Caspian" or "the Company")

                           Export Deliveries Commence


Caspian Holdings (AIM:CSH), the shallow field oil and gas exploration and
production Company focused on Kazakhstan announces it has commenced deliveries
of Zhengeldy oil to the KazMunaiGas export facility at Karsak in Western
Kazakhstan.


Deliveries of oil to the Karsak facility located 100km to the south of Caspian's
Zhengeldy field have commenced. Stocks will be built to a consignment of 1000
tonnes entering the pipeline in batches. The oil will be exported via the
KazTransOil and Transneft pipelines via Samara to the Baltic Sea Port of
Primorsk. (see map www.caspianoil.co.uk/projects/oilexport )


Zhengeldy has continued oil production operations, despite the minus 45 degrees
Celsius temperatures and high winds which have shut down other oil producers in
the region. This is a credit to the work done by the team in 2005 on flowlines
and other operations infrastructure.


Initial oil sale contracts have been entered into with T.N.A Munaj GmbH and
others based on the Urals Blend pricings reference point which is currently a
USD3-4/barrel discount to Brent


The commencement of exports will lead to a significant increase in the gross and
net well head price received by the company for its oil. At current oil prices,
the sale price should increase from approximately USD20/barrel for current sales
at the wellhead to approximately USD60/barrel at the export point. Taking
account estimated transport costs the net wellhead price should increase from
USD20/barrel to over USD40/barrel.


Commenting on the commencement of deliveries, Chairman Michael Masterman
commented "This is a big step forward for Caspian - in FSU countries getting the
oil to export market is in many ways as important as finding the oil in the
first place. It has taken patience to get the export logistics in place. We are
now on the road to a significant increase in prices and revenue at a time of
very high oil prices"


                                     -Ends-



Enquiries:

Caspian Holdings Plc     Hoodless Brennan         Parkgreen Communications
Michael Masterman        Luke Cairns              Justine Howarth / Ana Ribeiro
T: +44 (0) 7791288381    T: +44 (0) 20 7538 1166  T: +44 (0) 20 7493 3713
www.caspianoil.co.uk
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