Caspian International Oil Corporation ("CIOC") (OTCBB: CIOC), operating the Northwest Zhetybay oil field and an energy services company in Kazakhstan, announced that it has commenced interpretation of a just completed 3D seismic survey program on the Northwest Zhetybay oil field in western Kazakhstan, which is operated by its exploration and production subsidiary Kor-Tazh.
"We are very pleased to be approaching completion of this critical first step in the development of our oil field," said Mr. Lin Montgomery, newly appointed President of CIOC. "The seismic acquisition and processing was done by Dank SIF, the energy services subsidiary of CIOC, using source equipment produced by Input/Output, a Houston-based geophysical manufacturing company."
"Dank, a leading seismic company in Kazakhstan, offers CIOC a unique advantage in developing our oil field," added Mr. Montgomery. "Kor-Tazh, our subsidiary operating the Northwest Zhetybay oil field, is able to draw upon Dank's expertise and many years of experience, providing a number of key services that other energy companies would have to purchase from a vendor at significantly more cost. The survey was conducted on terrain near a state protected wildlife reserve, which offered many challenges. Dank met all of them."
Mr. Timur Bergaliyev, Executive Vice President of CIOC and President of Kor-Tazh LLP, commented on the survey and its importance to the development of the company's oil field. "This survey will serve several important purposes. First, using this just completed survey we will be able to further delineate the field and determine if the area should be extended by increasing the size of our production license. Second, when the seismic interpretation is completed, within the next six to eight weeks, additional production horizons may be identified. Finally, the data will be used to determine the sites for new drill locations, as we anticipate drilling in early 2008."
About the Northwest Zhetybay Oil Field
The company's Northwest Zhetybay oil field is located in western Kazakhstan, about 40 miles east of the Caspian Sea and about 15 miles from the highly prolific Zhetybay field. As per a Reserve Report issued by Ryder Scott, the Northwest Zhetybay field has approximately 56 million barrels of oil in place, with proved undeveloped reserves of 2.1 million barrels and proved and probable reserves of 6.6 million barrels.
Headquartered in Houston, TX, with operations in Almaty, Kazakhstan, CIOC operates through two primary subsidiaries: Kor-Tazh and Dank SIF.
-- Kor-Tazh is an exploration and production company operating an oil field under a 20-year production license in the prolific oil-producing Caspian Sea region of western Kazakhstan, and about 40 miles from the Caspian Sea and 15 miles from the adjacent, highly prolific Zhetybay oilfield. -- Dank SIF and its subsidiary, PGD Services, provide a comprehensive array of field services to oil and gas industry customers in Kazakhstan and the surrounding region: services include 3-D and 2-D seismic acquisitions, data processing and interpretation, reservoir modeling and topography.
CIOC's common stock is traded on the OTC Bulletin Board under the symbol: CIOC. More information can be obtained through the Company's website at: www.cioc.us
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This news release contains "forward-looking statements" about the business, financial performance and prospects of the company. Statements about the company's or management's plans, intentions, expectations, beliefs, estimates, predictions or similar expressions for the future are forward-looking statements. No assurance can be given that the outcomes of these forward-looking statements will be realized, and actual results could differ materially from those expressed as a result of various factors. A discussion of these factors, including risks and uncertainties that may frustrate management's plans, is set forth from time to time in the company's filings with the U.S. Securities and Exchange Commission.
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