RNS Number:2294Y
Caspian Holdings plc
10 February 2006



10 February 2006
AIM: CSH

                              Caspian Holdings Plc
                          ("Caspian" or "the Company")

                      New Well Drilling Campaign Commences


Caspian Holdings (AIM:CSH), the shallow field oil and gas exploration and
production Company focused on Kazakhstan announces it has commenced drilling its
first well - Well 101 - of its 2006 drilling campaign.

The first well, well number 101 will be drilled in the productive northern part
of the licence and will be followed by wells 102 and 103.  Well 101 is located
near Caspian's successful 111, 112 and 107 wells which have been the most
productive Zhengeldy wells to date.  The three wells are planned to be drilled
and completed over the next three months .  (See www.caspianoil.co.uk/projects
next week for a well locations and weekly drilling update)

Well location and oil bearing targets have been chosen following extensive
reviews and revisions of the geological model over the last four months.  Well
101 will be drilled to a target depth of 450m and is expected to intersect with
two oil bearing levels.

The capital cost of the three well programme is estimated to be USD650,000 and
is expected to lift oil production rates and profitability and will be funded
from the Company's recent share placement.

Commenting on the commencement of the 2006 drilling campaign, Chairman Michael
Masterman said "It's good to be back in the field with the drilling rig.  We
have a clear programme based on the results of the workover programme and
extensive geological work.  We have well defined oil bearing levels which we can
drill for around USD200,000 per well, making it highly economic at today's oil
price.  Our objective is to significantly boost revenues by combining the export
of oil, which we have recently started, with an increase in oil production."

On other matters, the Company continues to wait for Kazak Government approval on
its Zhengeldy licence extension.

                                     -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



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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