5th Jul 2005 08:30
Caspian Holdings plc05 July 2005 5 July 2005 CASPIAN HOLDINGS PLC ("Caspian" or "the Company") Well 106 results drive production and reserve re-evaluation Caspian Holdings announces the discovery of two oil producing levels in Well 106in the Necomian and Triassic zones and a significant 120 metres oil bearingstructure in the Jurassic zone. The Triassic zone from 713-717.5 metres has a net pay of 4.5 metres and aporosity of 21%. The well has been perforated in this zone and production testswill be completed next week The Necomian levels from 237-248 metres have a net pay of 8 metres and aporosity of 33.5%. This is a previously unidentified zone, which the Companyanticipates will be a strong producer based on high oil saturation and goodporosities shown in the Schlumberger well logs. The Jurassic zone from 285m to 405m covers a gross pay of 120m. Initial logevaluation indicates low oil saturation and we do not expect Jurassic productionfrom this level. However the massive size of the Jurassic level opens upsignificant exploration opportunities. Well 106 is the first well in which the Company has employed a technologicallyenhanced approach to logging, cementation and perforation of the well and thishas yielded dramatic results and insights into the reservoir structure. • The main Triassic reserves are held in carbonate rather than sands - previous wells had been classified as too tight when in fact it now appears good flow rates can be achieved from this carbonate • Production can be significantly enhanced in old and new wells by greatly improved cementation - previous poor well cementation has severely restricted production rates and obscured test results • New oil levels in the Neocomian and Jurassic zones have been identified • Perforation accuracy has been greatly improved "This is a fundamental step forward in opening up the reserves and productionpotential of the Zhengeldy oil field. Previously, logs have indicated theTriassic levels in Wells - such as 123, 115 and 116 - were dry based on a sandrather than carbonate interpretation of log results. Caspian will now re-logthese wells using the latest technology and there is significant potential toconvert these wells and the surrounding areas to oil producers", ExecutiveChairman Michael Masterman said today. For further information, please contact: Caspian Holdings Plc Hoodless Brennan Parkgreen CommunicationsMichael Masterman Luke Cairns Justine Howarth / Ana RibeiroT: +447791288381 T: +44 (0) 20 7538 1166 T: +44 (0)20 7493 3713 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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