16th Apr 2008 11:30
Caspian Holdings plc16 April 2008 Caspian Holdings Plc ("Caspian" or the "Company") 16 April 2008 Caspian Expands into the USA Signing 240 acre lease agreement with Vitoriano Serri Oil Company Caspian Holdings Plc (AIM:CSH), the oil and gas exploration Company announcesthat it has entered into a significant oil lease agreement with Vitoriano SerriOil Company (Serri), for the lease of a highly prospective 240 acre oil licensein the San Joaquin basin of Bakersfield, California. With producing oil wells on the border of the lease and a large explorationtarget in the deeper antelope shale, the lease provides Caspian with thepotential for US oil production and significant growth in recoverable reserves. Caspian will commence geological and geophysical studies to estimate resourcesand select well locations over the next two months. The Company expects to drillone to two wells in the second half of 2008. Caspian has a 100% interest in the lease, subject to formal confirmation oftitle on April 30 2008, and under the agreement will pay a 20% royalty to Serrion commercial production from the field. Under the lease Caspian is required todrill a minimum of one well by the end of 2008. Commenting on the agreement, Michael Masterman, CEO of Caspian Holdings said: "Iam delighted to be able to announce the signing of this lease, which will ineffect see Caspian expand it's focus into the USA. The license agreement withVitoriano Serri Oil Company gives the Company access to a highly prospective oilexploration project at a time when oil prices are buoyant. "Whilst waiting for approval on our Supervision of Development Plan for theZhengeldy Field in Kazakhstan, we have been open to opportunities globally,which we believe fit our business model and have the potential to provide ourshareholders with value, this is one of those opportunities. We hope to havedrilled between one and two wells during the second half of 2008 and lookforward to updating the market." Enquiries:Caspian Holdings Plc Grant Thornton Corporate FinanceMichael Masterman Fiona OwenT: +44 (0) 7791 288381 T: +44 (0) 20 7383 5100www.caspianoil.co.uk Hoodless Brennan Parkgreen CommunicationsLuke Cairns Ana Ribeiro / Justine HowarthT: +44 (0) 20 7538 1166 T: +44 (0) 20 7851 7480 Mr Dietmar Greil, Executive Director and Chief Operating Officer of CaspianHoldings Plc is a "qualified person" with over 20 years experience inExploration and Development in the oil industry. This press release has beenprepared under Mr Greil's supervision. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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