Following good oil shows encountered over the interval 1434m-1465m (both Beds V & VII) in Mailisu III

#6, casing is being run in the well. The well reached a total depth of 1,501m at 4pm November 21 and

wireline logs were then run. In the offset wells, 5-8m net pay is recognised in Beds V & VII and based on

the shows seen in the well a similar reservoir section is expected.

The well is an appraisal well and is located in the south-eastern corner of the Mailisu III licence just

outside an exclusion area (see Fig 1). Total production from the exclusion area is close to 700k bbls.

The closest well, Mailisu #115, some 400m distant, has produced nearly 300,000 bbls of oil with

minimal water. The mean reserves for Well #6 are 140,000 bbls with the main risk being depletion.

There is however strong evidence that infill drilling in this area is commercial. A recent close offset

well located some 4km to the south of Mailisu III saw good production (300-400bopd).

Caspian has a 70% interest in the Mailisu III licence but will retain 100% of any oil production until

costs have been recovered.

Mailisu #115

East