31st Jan 2006 10:33
Caspian Holdings plc31 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 andproduction Company focused on Kazakhstan announces it has commenced deliveriesof Zhengeldy oil to the KazMunaiGas export facility at Karsak in WesternKazakhstan. Deliveries of oil to the Karsak facility located 100km to the south of Caspian'sZhengeldy field have commenced. Stocks will be built to a consignment of 1000tonnes entering the pipeline in batches. The oil will be exported via theKazTransOil and Transneft pipelines via Samara to the Baltic Sea Port ofPrimorsk. (see map www.caspianoil.co.uk/projects/oilexport ) Zhengeldy has continued oil production operations, despite the minus 45 degreesCelsius temperatures and high winds which have shut down other oil producers inthe region. This is a credit to the work done by the team in 2005 on flowlinesand other operations infrastructure. Initial oil sale contracts have been entered into with T.N.A Munaj GmbH andothers based on the Urals Blend pricings reference point which is currently aUSD3-4/barrel discount to Brent The commencement of exports will lead to a significant increase in the gross andnet 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 salesat the wellhead to approximately USD60/barrel at the export point. Takingaccount estimated transport costs the net wellhead price should increase fromUSD20/barrel to over USD40/barrel. Commenting on the commencement of deliveries, Chairman Michael Mastermancommented "This is a big step forward for Caspian - in FSU countries getting theoil to export market is in many ways as important as finding the oil in thefirst place. It has taken patience to get the export logistics in place. We arenow on the road to a significant increase in prices and revenue at a time ofvery high oil prices" -Ends- Enquiries: Caspian Holdings Plc Hoodless Brennan Parkgreen CommunicationsMichael Masterman Luke Cairns Justine Howarth / Ana RibeiroT: +44 (0) 7791288381 T: +44 (0) 20 7538 1166 T: +44 (0) 20 7493 3713www.caspianoil.co.uk----------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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