Caspian Oil & Gas Announces More Success At West Mailisu #2 Well

Caspian Oil & Gas Limited (ASX: CIG) today announced that the West Mailisu #2 well has penetrated all of the primary targets.

The West Mailisu #2 well is on Caspian's 100%-owned West Mailisu license in the Kyrgyz Republic, Central Asia.

Fluorescence and gas shows were encountered from the top of Bed V with continued higher gas reading throughout the section carbonate interval (1805-1825m) including Bed VII.

While the limestone is described as having low porosity, oil films appear in microfractures in the formation and oil shows were present with indication of yellow fluorescence over the upper section (1805-1808m). This suggests that fractures provide a conduit within the reservoir.

In light of this, the zone previously called Bed II (see announcement 27/7/2011) is likely to be Bed III, which was also a primary target.

Caspian chief executive officer, Graeme Parsons, said the clarification of the presence of oil in Bed III rather than Bed II is good news as Bed III is likely to be more extensive and have better reservoir charcteristics. "Bed III indicated strong oil shows with visible oil in cuttings with a smell of hydrocarbons and bright yellow bluish fluorescence over the interval 1691-1697m," Mr Parsons said.

The well is currently drilling ahead at 2015m with the aim of intersecting some of the secondary Cretaceous sandstone targets. At this time Beds XIII & XIV have been penetrated and in both cases proved to be thin and poorly developed with some minor gas associated with each zone. The gas however is solely methane and unlikely to contain commercial volumes. Caspian plans to drill ahead to around 2050m to investigate whether any better Cretaceous sands are present and then undertake wireline logging operations. Once the logging has been conducted a plan for flow testing Beds III and V will be formulated.

The well is being drilled by Caspian's own rig to a depth of approx. 2,000m, testing the Eocene and upper Cretaceous sands.