CSH Civitas Social Housing Plc

RNS Number:8923D
Caspian Holdings plc
01 June 2006

1 June 2006

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


                     Caspian drilling success gathers pace


Caspian Holdings (AIM: CSH), announces positive results from its 2006 drilling
and workover programmes with production increasing 170% to approximately 300
barrels a day.


Since the start of 2006 Caspian has drilled 4 new wells:-


*  Well 101 log results indicate a number of productive levels.  The
   deepest levels have been perforated and the well tested at a rate of 45 
   barrels a day.  A shallower higher oil saturation level is yet to be tested.

*  Well 102 log results showed two productive levels.  Initial tests 
   demonstrated hydrocarbon flows.  Minor remedial work has been conducted on 
   the well and testing will resume during June 2006

*  Well 103 has been tested at an open flow rate of 230 barrels a day and a 
   steady test rate on a 9mm choke of 120 barrels a day.  The choke size was
   reduced to 4mm during May with production of approximately 85 barrels a day

*  Well 105 on the Western edge of the salt lake has been successfully drilled 
   to a depth of 575 meters and logs have identified two oil bearing zones.
   The well has been cased and perforated in the deepest zone and testing is
   underway


Operationally all four wells drilled have proved to be time and cost efficient,
with a low capital cost of approximately USD250,000 per well.  The economy of
the wells will enable the Company to recover capital costs in a relatively short
timeframe, based on production expectations.


Results of 2006 Drilling programme

   Well       Depth      Drilling    Oil Zones     Net Pay      Oil Saturation %    Porosity %    Tested rate
                                                   metres                                            bopd
              metres       Days

   101         455          22          2++           8               65%               30%           45

   102         400          16           2          10.8              90%               30%       Under test

   103         302          13           2           14               90%               30%           120

   105         575          20           2            7               80%               30%       Under test


The next well to be drilled will be well 104 in the unexplored Block 4 (see map
on www.caspianoil.co.uk).  The results of well 105 and 104 should allow the
Company to determine the extent of the drilling programme for the rest of 2006.
In particular, we will look to tie back the new well 105 to our most successful
well 103 with more drilling on the salt lake anticipated.


The workover programme is also progressively yielding good results:-

* Well 112 perforations have been increased and the well has come back on line 
  producing approximately 50 barrels a day - a 40% increase on previous rates

* Well 115 (previously considered dry) is producing at good rates up to 30-40 
  barrels a day

* Well 123 (previously considered dry) is producing at around 30-40 barrels a 
  day

* Well 114 (previously poorly performing) is producing at 30-40 barrels a day

* Well 107 (previously poor cementation) is producing 30-35 barrels a day


Overall 8 out of the 9 new wells drilled in 2004 and 2005 are successfully
producing - a 85%+ success rate.  Increased production from the workover
programme is now starting to kick in and boost production rates.  2006 has seen
higher production.rates with the wells drilled this year producing at rates
significantly above the wells drilled in 2005.


Commenting on the results, Michael Masterman, CEO of Caspian said: "By
revisiting old wells and drilling new wells we have managed to increase
production to approximately 300 barrels per day, a 170% increase. Our drilling
programme is progressing well and we remain optimistic that we can build on the
success of the first part of 2006. "


                                     -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


Mr Dietmar Greil, Executive Director and Chief Operating Officer of Caspian
Holdings Plc is a "qualified person" with over 20 years experience in
Exploration and Development in the oil industry.  This press release has been
prepared under Mr Greil's supervision.


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

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