Caspian Holdings has discovered two oil producing levels in Well 106 in the Necomian and Triassic zones and a significant 120 metres oil bearing structure in the Jurassic zone.

The Triassic zone from has a net pay of 4.5 metres and a porosity of 21%. The well has been perforated in this zone and production tests will be completed next week

The Necomian is a previously unidentified zone, which the Company anticipates will be a strong producer based on high oil saturation and good porosities shown in the well logs.

The Jurassic zone has a gross pay of 120m however initial log evaluation indicates low oil saturation and although the company does not expect Jurassic production from this level the massive size of the Jurassic level opens up significant exploration opportunities.

Well 106 is the first well in which the Company has employed a technologically enhanced approach to logging, cementation and perforation of the well and this has yielded dramatic results and insights into the reservoir structure.

Executive Chairman Michael Masterman said “This is a fundamental step forward in opening up the reserves and production potential of the Zhengeldy oil field. Previously, logs have indicated the Triassic levels in Wells - such as 123, 115 and 116 - were dry based on a sand rather than carbonate interpretation of log results. Caspian will now re-log these wells using the latest technology and there is significant potential to convert these wells and the surrounding areas to oil producers'.