Caspian Oil & Gas Limited: June 2012 Quarterly Activity Report
Perth-based exploration company Caspian Oil & Gas Limited (ASX: CIG) reports its activities for the
June 2012 quarter.
Highlights
In line with the Company’s strategy of assessing new opportunities and following a period of due diligence, Caspian Oil & Gas has entered into a Heads of Agreement for the purchase of Equus Resources Limited. Equus has the right to acquire the highly prospective Naltagua Copper Project in Chile. Subject to shareholder approval, the acquisition of Equus is targeted for completion in early September 2012.
Kyrgyz Republic Oil
The Mailisu III #6 well was put into production in late May 2012. After an initial flush production, the well is producing at around 10 barrels of oil per day. To end June the well has produced 360 barrels of oil.
As previously announced, a majority of the Kyrgyz oil and gas exploration permits expire at the end of December 2012 and, despite extensive negotiations with the Government, the permits will not be renewed thus bringing their 10 year tenure to an end. The flow rates and revenue from the production licences continue to decline, making a shutdown or disposal of the Kyrgyz operations inevitable in the near term.
Operations
Following the removal of stuck perforation guns from the Mailisu III #6 well bore in the Kyrgyz Republic and acidisation, the well was put into production. After an initial flush production, the well is producing at around 10 barrels of oil per day. To end June the well has produced 360 barrels of oil. The Mailisu III field is held by 70%-owned Caspian Oil subsidiary South Derrick LLC.
