Drilled to a total depth of 740 metres, the Mailisu III-1 well returned positive indications from two of the three cores taken over the main reservoir targets, Beds V and VII.

“There is potentially 2 metres of net pay with porosity ranging from 8 to 20 percent,” Caspian announced yesterday.

“The porosity is described as interfossiliferous and fractured displaying ‘common bright yellow and bluish fluorescence, with bright white bluish streaming cut and hydrocarbon odour’.”

Caspian plans to run wireline logs over the well tomorrow, before deciding whether to case the well for pump testing at a later stage.

The Mailisu III-1 well was drilled using Caspian’s new $3.5 million 650-hp ZJ20 drill rig.

It is the first of 11 wells planned for Caspian’s licences in the historic Fergana Basin, which has been producing oil for more than 100 years but has only seen limited exploration using modern techniques.

The first well site is on the Ashvaz block near the town of Mailisu, and there are plans to test the northern limits of the producing Mailisu III field.

The Mailisu III field has produced over 700,000 barrels of oil to date.

Under a farm-in agreement, Caspian has the rights to the shallow potential of some northern Fergana licences, while partner Santos focuses on the deeper potential.

As a result, the Ashvaz block is one of those northern licence areas where Caspian retains 100% rights to any oil down to 1000m.