RusEnergy

26 September 2007 - Upstream OnLine - Australia-listed Caspian Oil & Gas said today it had the started drilling at the first of 11 planned wells at its northern Fergana basin licences in Kyrgyzstan. The first well site is on the Ashvaz Block near the town of Mailisu, and is planned to test the northern limits of the producing Mailisu III field, Caspian said. The well will be drilled to a depth of about 800 metres and is expected to be completed within two weeks. The Mailisu III field has produced over 700,000 barrels of oil to date, the company said. Caspian has a joint venture in Kyrgyzstan with Santos. According to the farm-in agreement between the two companies, Santos is focused on the deeper potential, with Caspian retaining the rights to the shallow potential of some of the northern Fergana licences. The Ashvaz Block is one of those northern licence areas where Caspian retains 100% rights to any oil down to 1000 metres.