Caspian Oil and Gas Suspends West Mailisu 2 and Fishes in West Mailisu 3

Caspian Oil & Gas Limited has suspended operations on its West Mailisu #2 well on the Company’s 100%-owned West Mailisu licence in the Kyrgyz Republic, Central Asia, after pump testing recovered only a small amount of oil.

Caspian previously reported on 25 October, 2011 that it was sourcing appropriate equipment to bring the West Mailisu #2 well into production. A new beam pump was sourced in November but heavy snow and rain led to the deterioration of the access road, requiring a rebuild over a steep section. While snow and sub-zero temperatures continued to impact operations, by late December the pump was installed.

Some 10m³ of completion fluid and 3.2m³ (~20bbls) of oil were recovered before the pump ran dry and a decision was made to pull the completion (tubing and pump) from the hole to check seals for sand or other blockages. Subsequent measurement of the fluid level in the hole confirmed that there was little further influx into the wellbore from the formation. It can be concluded that the formation is either tight or damaged and without further in-wellbore activity (reperforation, radial drilling or fraccing) the well will not be commercial.

Given ongoing poor weather and ground conditions, a decision has been made to demobilise the completion crew pending an assessment of the next course of action and safer rig access conditions (probably April/May). The crew will now move to complete and test the previously drilled Mailisu III #6 well. This 1,501 metre well intercepted oil within the carbonates of Beds V and VII. Drilled in November 2009, it has not been tested to date due to stuck perforation guns and restrictions on acid sales throughout 2010.

An attempt will be made to remove the stuck perforation guns using a recently acquired fishing tool to enable the pump and tubing to be set at the optimum level. Well #6 will then be pump tested before attempting an acid treatment.

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