I think it`s about time CSH had a thread, an AIM oil co. that is producing oil and quality stuff at that. These are vastly under-valued, market cap. 30 mill., they are going up on news NOT hype. check them out.
Dexter

wilbs,
How you doing?, i`ve had to sell all my stocks for the time being due to circumstances, but i am keping a very close eye on my stockwatch list. I sold CSH for a good profit a while back, but i must admit i`m intrigued to see how far it will dip, as i do really have a lot of faith in them, purely from the fact that their drilling is low cost and low risk.
I hope to start buying again in a couple of months, so from a purely selfish point i hope the dip continues for a while!, seriously though i do believe that CSH is a more longer term prospect. I also think that COIL will come good as will ZRB, another one i have kept an eye on from the start is BRP, it dipped after the float and then in the last week or so has rocketed.

By the way, when i went to see the Tractor Boys the other week they lost 0- 1 to QPR !, it was a good day out though, very good atmosphere and friendly.
regards,
Dexter

Dexter RNS due this month, could be tomorrow? Don't think you will get them
at this price again. Confirmation of flow rates, which is believed to produce
upto 2000 bopd with 3 more wells in the pipeline.Couple this with a new
processing plant to inprove oil quality, will shortly be earning in the region
of $100000/day.
If the proposed acquisition takes place it will increase oil reserves to 26million bls proven.
cyril

Hi dexter,
Im ok thanks, doing too msny hours at work at the moment so not had a chance to post.
Sorry to hear that you have had to sell your stocks. Hope whatever it is gets sorted and you get back in soon enough. I agree with niceonecyril though, once we get the results I dont think you will be able to buy at this price again. I see coil is doing pretty well, big spread though!! I sold all my stanelco and made a nice healthy proffit. Bought into GAS, gonna hols and see what develops there. It looks like the tractor boys are loosing it a bit. Will we see the local derby next season in the 1st division or whatever they are calling it now??
Take it easy dexter,
wilbs

Caspian Holdings plc
22 March 2005


22 March 2005

CASPIAN HOLDINGS PLC

Commercial Oil Discovered in Well 115

Further to the announcement on 21 January 2005, Caspian Holdings Plc (AIM: CSH),
the oil and gas exploration and development company which focuses on Kazakhstan
and the Caspian sea, has successfully drilled Well 115 the 6th well.

Well logs showed oil in the Triassic at 634-625 metres and in the Neocomian at
90-84 metres.

Well 115

Depth 680 metres
Completed March 05
Oil pay 15 meters
2 Levels: 634-625 m, 90-84 m

First layer test at the Triassic level showed low flow rates and this level has
been shutin pending further testing and investigations. The Necomian level from
90-84 meters will be perforated and oil production is expected to commence this
week.

In addition to Well 115, spontaneous eruptive production commenced from an old
Zhengeldy well - Well 13 - without any drilling or other stimulation. A pump has
been installed and well performance is to be tested.

Caspian currently has 6 wells in production - 113, 114, 112, 111 in the
Jurassic, 115 in the Necomian, and the old Well 13. Initial production has been
highest in the last 2 wells to be drilled in the Jurassic - Well 111 and Well
112 - with Well 115 expected to come on stream in the coming month. Production
has increased rapidly in recent months but remains highly constrained by
bottlenecks caused by the extreme weather conditions in the region. Caspian has
commenced drilling well 116 targeted at both Jurassic and Triassic reserves.

Michael Masterman, Executive Chairman commented: 'The addition of Well 115 means
that we will now have 6 Wells in production despite adverse weather conditions.
Success at 115 and the spontaneous eruption of well 13, an old Zhengeldy Well
makes us positive about the future production of these wells and the potential
of increasing production levels.'
- Ends -

Looks like we are gonna finally see the rise that this stock deserves. Any guesses as to where we will end up?
Next stop, results in april.

wilbs

UP 20%!!!

There's just sooo many of these oil companies that have come to market lately (and mining cos. too) that it's becoming difficult to sort the wheat from the chaff. They all seem to follow the same pattern too; big jump first day of dealings which gets people sucked in. Then a slow fall back, followed by another spurt on the rumour of news and then another fallback.

It seems that the sensible thing is to wait it out until all of the froth has blown away and something of substance appears to remain. You just have to look at the charts of most of these cos. to see a familiar pattern emerging. In fact the whole IPO scene at the mo is getting a bit silly all round. It's starting to feel like it did at the height of the dotcom frenzy. Thankfully the only pig-in-the-poke I've got sucked into that hasn't yet shown a profit is BPD. But it's so easy for the inexperienced punter to get caught up in the excitement of early dealings in these cos.

Sorry about that rant guys as I haven't posted on MoneyAM for a while. Still licking my wounds from PET, PCI, PRE!!

What relationship, if any, is there between CSH and CEK? Cos the CEK chart is starting to look as if it may be about to get a second wind, the froth hopefully having been blown away by now......

The difference between CSH and the others is that CSH are producing top quality comercial oil. Look at all the other minnows, most of them havent produced a drop yet. PET,PCI,PRE.FOGL, The list goes on. The current sp of CSH does not reflect against the company. FOGL & PET havent pumped a drop yet their SP is higher than CSH, its all hype and spec on poss contracts or finds.
CSH is a sure fire winner.
All IMO of course.
wilbs

Beasties wilbs is right, no froth here, "6 out of 7 wells sucessful" top quality
oil. Look at the referance to well 13, this really is a gift horse.
Previous post i stated last chance to get under 50p, just topped up at 52p
and this is cheap. So much more to come, processing facility and acquiistion
which will double reserves.
Don't know of any other stock with such upside.
cyril
ps i also lost out on pci pre & pet, lesson learned, no hot air here just oil(good quality at that)

wilbs,
good luck with these, it looks like the sp will finally reflect the potential, just wish i had the funds , but never mind!
dexter

thanks dexter,
Im thinking of selling 70% of my other stocks and putting it all in CSH.
When will you be back on board dexter?

niceonecyril!!! You name says it all.
wilbs

wilbs,
I hope so, i`m hoping they won`t jump too much!. I`m keeping aclose eye on ZRB, they could announce a uranium deal anytime, and after what happened with RTM last week, I think % wise they could follow quite easily.
Dexter

dexter,
It will be good to see you back. I bought into EUM last week, got good potential. I sold seo apart from 10,000 shares, took a good proffit.
Off to work now,
wilbs

Fair comments guys. I wasn't having a go at CSH as such, just the IPO resource sector in general, as it's easy to get sucked in.

I'm in CSH at 30p so I'm not complaining.

What a lovely blue day for CSH.
Results and news round the corner???????
wilbs

Big talk on the other side about the field expectations being 30 times larger than expected and that a RNS saying this will be out on Monday 25th.
Makes interesting reading and no doubt the Ad*f* lot are steaming into this one.
Don't trust everything you read on that site - but there is no smoke without fire -somethings leaked and the buyers have steamed in 24% rise and the talk is more to come over the nexy few days. DYOR and only buy them if they are right for you.

A blue start!!
wilbs

Posted on the other side.


Just spoke to Hoodless and confirmed also that results Monday - very upberat he was saying that all info since admitted to AIM has been good and that they are still strong supporters of the company. Said that the numbbers (financials) will be meaningless at this stage as too early in the co's life cycle but the importnat bit is the production and the plans for the coming yr.

wilbs

Caspian Holdings plc
27 April 2005




27 April 2005

CASPIAN HOLDINGS PLC
('Caspian' or 'The Company')
Preliminary Results

Caspian Holdings Plc (AIM:CSH) the London-based AIM-quoted company whose primary
activity is the exploration, development and operation of oil fields in the
countries around the Caspian Sea, and in particular Kazakhstan, announces its
preliminary results for the year ended 31 December 2004.

Highlights

* Caspian Holdings PLC admitted on to AIM on 4 November 2004, raising 4.43m
* Acquired 70% of Taraz LLP the owner of the Zengeldy oil field in
Kazakhstan in March 2004
* Constructed Zengeldy oil field operations in 9 months
* Commenced commercial oil production and sales in September 2004
* Drilled 3 new wells and reactivated well number 5
* Applied for expansion of existing licence area to over 30 km2


Post year end highlights

* Completed acquisition of 100% interest in Taraz LLP
* Drilled an additional 4 wells
* Total of 4 wells in production plus 1 under completion
* Produced 10,022 barrels of oil (to 31 March 2005)

Commenting on the results, Michael Masterman, Executive Chairman, said: 'It has
been a strong year for us. The AIM listing in November 2004 provided us with the
funds to acquire 100% and then rapidly develop Zengeldy, our first oil field
which is now in production. Since the listing, we have submitted an application
to expand the licence area of Zengeldy with the view of increasing production
and in addition we continue to actively pursue new projects which we believe
will add value to the company.'

- Ends -

For further information, please contact:

Caspian Holdings Plc Hoodless Brennan Parkgreen Communications
Michael Masterman Luke Cairns Justine Howarth / Ana Ribeiro
T: +447791288381 T: +44 (0) 20 7538 1166 T: +44 (0)20 7493 3713




CHAIRMAN'S STATEMENT


Dear Fellow Shareholder

On behalf of the Board of Directors of Caspian Holdings Plc, I am pleased to
present the first Annual Report of the Company since admission to AIM on 4
November 2004.

The year under review was one of great achievements for the Company. We acquired
and quickly brought into production our first oil field, Zengeldy, and we
completed a successful IPO of the Company raising 4.43m. Since listing we have
moved to expand oil production from the Zengeldy field, submit an application to
expand the licence area, and we are pursuing other fast track oil field
development and production activities around the Caspian Sea.

We now look to 2005 with great anticipation and excitement as we establish
Zengeldy as a commercially self sustaining profit centre for the Company. In
addition we are working to secure an expansion in the current licence area and
we continue to work towards securing new projects that will add to our oil
reserves, oil production capacity and add value for shareholders.

Yours faithfully




Michael Masterman
Executive Chairman


REVIEW OF DEVELOPMENT AND OPERATIONS

Zengeldy
Caspian's first oil project is the Zengeldy field located 18km from Makat in the
pre Caspian Basin. The field was acquired through the acquisition of Taraz LLP,
the owner of the Zengeldy subsoil contract in February 2004.

Caspian moved forward to commence initial development of the Zengeldy field
through 2004 and early 2005. The initial focus has been on bringing into
production the Jurassic and Triassic reserves.

The top of the Zengeldy salt dome is in the north of the licence area at a depth
of approximately 450m and the above sequence only contains Jurassic, Neocomian
and Apt oil bearing levels. The Triassic targets are in the east, south, and
west areas of the licence with the most promising reserves in the western areas
below a salt lake which will be drilled in the summer of 2005.

Four wells have been drilled in the Jurassic - 113, 114, 111 and 112 - and all
wells have been brought into production. Each of the wells has multiple
production levels and production to date has been from a single productive
level. The additional levels will be brought on in series (not parallel)
extending well life and recovery (but with lower initial daily rates).
Production from wells 113, 111, and 112 has been broadly in line with
expectations for these shallow Jurassic wells of about 50-70 barrels per day per
well. Production from the lower level of 114 has been minimal due to low
permeability in this layer - production from the higher layer will be brought
into production later this year. Jurassic production was 590 bbls in the
December Quarter 2004 and has since risen rapidly to 7,351 bbls in the March
Quarter 2005. Further increases are expected in the June Quarter 2005 as new
wells including the recently drilled 116 are brought online, flow lines and
improved storage are installed and weather conditions improve.

Winter drilling on Triassic targets has focused on the southern and eastern
areas of the licence. A previous well, Well 5, was reactivated in June 2004 and
the well logs, within the cased well showed a 15m oil pay with 32m in the lower
open section. The well initially produced good quantities of oil but due to poor
cementation in the old well casing, the well was shut down due to water influx
from the higher levels. Well 123 drilled further to the south of Well 5 was dry
due to a change in lithology from clean to shale sands. In the eastern Triassic
targets well 115 had oil shows but insufficient oil saturation for commercial
production. Updated evaluation of the geological model shows that the bulk
Triassic reserves lie in the west of the licence area under the salt lake and to
the west. The lake should be sufficiently dry to commence drilling activities in
the third quarter 2005.

Overall Zengeldy field production in 2004 and early 2005 has been limited to
production from the Jurassic level reserves and is currently running at
approximately 150 barrels per day. Significant increases in production are
dependent on the success of the summer Triassic drilling program.

Based on geological modelling work, Caspian is of the view that the Zengeldy oil
bearing structure extends to the west of the existing licence area. An
application has been made to the Kazak Ministry to extend the licence area to 30
square km. The Ministry is currently evaluating the application. In parallel we
have had positive discussions with the owner of the adjacent exploration block
regarding joint development of the extension area. We expect a positive outcome
from the application and negotiations in mid 2005.

A 3D seismic program is also planned during the summer to better define the
geological model and reserves estimates. A comprehensive review and revision of
the geological model and associated reserves estimates will then be completed to
incorporate the results of all wells drilled including the summer Triassic
program, the extension and the 3D seismic results. On the basis of drilling to
date the Directors are optimistic that the review could lead to an upgrade in
the Jurassic reserve estimates.

New Projects
The Company continues to actively evaluate new projects in Kazakhstan and the
other countries around the Caspian Sea. Progress has been made in the screening,
evaluation and negotiation process and tangible results will be released to the
market in accordance with the continuous disclosure requirements.

CONSOLIDATED FINANCIAL STATEMENTS

CASPIAN HOLDINGS Plc

GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004

Notes 2004 2003


TURNOVER 2 - -

Administrative expenses 610,302 -


OPERATING LOSS 4

Acquisitions (150,067) -
Continuing operations (460,235) -
(610,302) -
Interest receivable and similar income 5 13,254 838

Interest payable and similar charges 6 (6,517) -

LOSS/PROFIT ON ORDINARY ACTIVITIES
BEFORE (603,565) 838
TAXATION

Tax on loss/profit on ordinary 7 - -
activities

LOSS/PROFIT FOR THE FINANCIAL YEAR
AFTER (603,565) 838
TAXATION

Minority equity interests 29,707 -


RETAINED (LOSS)/PROFIT FOR THE (573,858) 838
FINANCIAL YEAR

====
Basic and Diluted loss per share 9 2.2p -






The notes form part of these financial statements



CASPIAN HOLDINGS Plc

GROUP BALANCE SHEET
31 DECEMBER 2004


Notes 2004 2003
------- ------
FIXED ASSETS
Intangible assets 10 1,877,190 -
Tangible assets 11 784,006 -
--------- ------
2,661,196 -

CURRENT ASSETS
Stocks 13 90,112 -
Debtors 14 302,503 58,488
Cash at bank and 3,100,585 -
in hand ----------- ------------

3,493,200 58,488

CREDITORS:
Amounts falling 15 326,416 55,650
due within one ---------- -------------
year

NET CURRENT 3,166,784 2,838
ASSETS ------------- -------

TOTAL ASSETS
LESS
CURRENT 5,827,980 2,838
LIABILITIES

CREDITORS:
Amounts falling 16 226,588 -
due after more ------------- -------
than one year

5,601,392 2,838
============== ========
CAPITAL AND
RESERVES
Called up share 17 83,882 2,000
capital
Share premium 18 6,087,755 -
account
Other reserve 18 2,775 -
Profit and loss 18 (573,020) 838
account -------------- --------

Shareholders' 5,601,392 2,838
funds =============== ========

Shareholders'
funds
attributable to
Equity interest 5,601,392 2,838
============= ========





The notes form part of these financial statements



CASPIAN HOLDINGS Plc
COMPANY BALANCE SHEET
31 DECEMBER 2004

Notes 2004 2003

FIXED ASSETS
Investments 12 1,145,146 -

CURRENT ASSETS
Debtors 14 1,787,873 58,488
Cash at bank and 3,025,695 -
in hand -------------- -------
4,813,568 58,488

CREDITORS:
Amounts falling 15 166,321 55,650
due within ------------- --------
one year

NET CURRENT 4,647,247 2,838
ASSETS ----------- --------

TOTAL ASSETS
LESS
CURRENT 5,792,393 2,838
LIABILITIES ============= ==========

CAPITAL AND
RESERVES
Called up share 17 83,882 2,000
capital
Share premium 18 6,087,755 -
account
Profit and loss 18 (379,244) 838
account ----------- -----------

Shareholders' 5,792,393 2,838
funds ============ ==========

Shareholders'
funds
attributable to
Equity interest 5,792,393 2,838
============ ==========






The notes form part of these financial statements

CASPIAN HOLDINGS Plc
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004

Notes 2004 2003
------- -------

Net cash outflow
from operating activities 1 (1,051,019) (2,838)

Returns on investments and
servicing of 2 6,737 838
finance

Capital expenditure
and financial investment 2 (1,025,330) -

Acquisitions and disposals 2 (861,428) -
----------- --------

(2,913,040) (2,000)

Financing 2 6,031,625 2,000
----------------- -------

Increase in cash in the period 3,100,585 -
================= ====

Reconciliation of net cash flow to 3
movement in net debt

Increase in cash in the period 3,100,585 -
Cash outflow from decrease in
debt and 487 -
lease financing ----- ---

Change in net debt resulting
from cash 3,101,072 -
flows

Royalty payments acquired (288,315) -
----------------- ---

Movement in net debt in the 2,812,757 -
period

Net debt at 1 January 2004 - -
---------------- ---

Net debt at 31 December 2004 2,812,757 -
============ ==============



The notes form part of these financial statements


CASPIAN HOLDINGS Plc

NOTES TO THE GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2004

1. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

2004 2003
------- -------

Operating Loss (610,302) -

Depreciation charges 36,902 -

(Increase) in stocks (89,819) -

(Increase) in debtors (235,899) (58,488)

(Decrease)/Increase in creditors (151,901) 55,650
------------------ --------
Net cash inflow

from operating activities (1,051,019) (2,838)
================ ==========

2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

Returns on investments and servicing of finance
Interest received 13,254 838
Interest Paid (6,517) -
--------- ------------

Net cash outflow for returns on investments and
servicing of finance 6,737 838
======== ======

Capital expenditure and financial investment

Purchase of intangible fixed assets (224,796) -
Purchase of tangible fixed assets (795,132) -
Exchange differences (5,402) -
--------- ---
Net cash outflow for capital expenditure and
financial (1,025,330) -
investment ============== ====

Acquisitions and disposals
Purchase of subsidiaries (864,546) -
Cash acquired 3,118 -
-------- ---

Net cash outflow for acquisitions and disposals (861,428) -
============ ====

Financing

Movement on other reserve 2,775 -

Share issue 6,029,337 2,000

Capital element of hire purchase or finance 22,488 -
leases

Capital element of royalty payments (22,975) -
-------------- ---------------

Net cash (outflow)/inflow from financing 6,031,625 2,000
============ ========

The notes form part of these financial statements

CASPIAN HOLDINGS Plc
NOTES TO THE GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2004

3. ANALYSIS OF CHANGES IN NET DEBT

Acquisitions
--------------
Cash flow (Excl. cash) At 31.12.04
----------- -------------- -------------

Net cash:
Cash at bank and in hand 3,100,585 - 3,100,585
-------------- ---------------- --------------------

Debt:
Hire purchase or finance (22,488) - (22,488)
leases
Royalty lease payments 22,975 (288,315) (265,340)
--------------- -------------- -----------------

487 (288,315) (287,828)
--------------- -------------- -----------------
---
Total 3,101,072 (288,315) 2,812,757
============= ============= =============

Analysed in Balance
Sheet


Cash at bank and in hand 3,100,585
Hire purchase or finance
leases
within one year (6,732)
after one year (15,756)
Royalty lease payments
within one year (54,508)
after one year (210,832)
-------------

Net Debt 2,812,757
=============

4. PURCHASE OF SUBSIDIARIES

Net assets acquired


Fixed assets 366,320
Stock and work in progress 293
Debtors 8,116
Cash at bank and in hand 3,118
Creditors (221,127)
Royalty lease payments (288,315)
Minority interest (29,707)
Goodwill 1,306,448
----------------

1,145,146
================
Satisfied by


Cash 864,546
Issued share capital 140,300
Share capital to be issued 140,300
-------------

1,145,146
============


The notes form part of these financial statements

CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared in accordance with applicable United
Kingdom accounting standards under the historical cost convention.

Basis of consolidation

The consolidated financial statements include the accounts of subsidiaries made
up to 31 December 2004.

On 8 April 2004 formal completion of the acquisition of 70% of the capital of
Taraz LLP took place. The consolidated financial statements include the results
of Taraz LLP for the year ended 31 December 2004. The directors consider that
the pre acquisition results of Taraz LLP are not material to the results shown
in the consolidated profit and loss account. The directors have adopted this
accounting treatment in order that the consolidated results of the group show a
true and fair view.

On 1 September 2004, the company signed an agreement to acquire the remaining
30% interest in Taraz LLP, formal completion of which took place on 28th March
2005. The directors consider that, in order for the consolidated accounts to
show a true and fair view, that Taraz LLP is consolidated as a wholly owned
subsidiary of the company. Interim audited consolidated accounts were prepared
to 30 June 2004 and these accounts have been used to calculate the goodwill
arising on the purchase of the remaining 30% interest in Taraz LLP. The
directors consider that the results for the two months 1 July 2004 to 1
September 2004 are not material.

No profit or loss account is presented for the company as permitted by S230 (3)
of the Companies Act 1985.

Goodwill

Goodwill arising on consolidation, which represents the excess of the purchase
price over the fair value of net assets acquired, is shown in the balance sheet
as an asset and will be amortised evenly over its estimated useful life once
trading has commenced. In addition to the systematic amortisation, the book
value is written down to recoverable amount when any impairment is identified.

The directors consider the estimated useful life of goodwill to be in line with
the contract between Taraz LLP and the Government of the Republic of Kazakhstan
for the exclusive right to use the subsurface on the Zhengeldy oil field which
terminates on 27 May 2024.

Intangible fixed assets

Amortisation is calculated and provided in order to write off each asset over
its estimated useful economic life, such amortisation to commence when the asset
concerned is initially used within the business.

Royalty - 5% - 33% on cost
Software - 5% - 33% on cost

Deferred costs represent costs for preparatory work for oil production. These
costs are to be written over a period of 4 years starting in the year that the
first income from selling oil is received.



CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

1. ACCOUNTING POLICIES (cont'd)

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off
each asset over its estimated useful life or, if held under finance lease, over
the lease term, whichever is the shorter.

Bore holes - 10% on cost
Motor vehicles - 20% on cost
Plant and equipment - 20% - 33% on cost
Furniture and other equipment - 10% - 33% on cost

Deferred Tax

The tax charge is based on the profit for the period and takes into account
taxation deferred because of timing differences between the treatment of certain
items for taxation and accounting purposes. Deferred tax is recognised in
respect of all timing differences that have originated but not reversed at the
balance sheet date where transactions or events have occurred at that date that
will result in an obligation to pay more, or a right to pay less or to receive
more, tax, in the future. In particular:

Provision is made for tax on gains arising from the revaluation (and
similar fair value adjustments) of fixed assets, and gains on disposal of
fixed assets that have been rolled over into replacement assets, only to the
extent that, at the balance sheet date, there is a binding agreement to
dispose of the assets concerned. However, no provision is made where, on the
basis of all available evidence at the balance sheet date, it is more likely
than not that the taxable gain will be rolled over into replacement assets
and charged to tax only where the replacement assets are sold.


Provision is made for deferred tax that would arise on remittance of the
retained earnings of overseas subsidiaries, associates and joint ventures
only to the extent that, at the balance sheet date, dividends have been
accrued as receivable.


Deferred tax assets are recognised only to the extent that the Directors
consider that it is more likely than not that there will be suitable taxable
profits from which the future reversal of the underlying timing differences
can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are
expected to apply in the periods in which timing differences reverse, based on
tax rates and laws enacted or substantively enacted at the balance sheet date.

Stock

Stock is valued at the lower of cost and net realisable value, after making due
allowance for obsolete and slow moving items.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction or at the contracted rate. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the rate of exchange
ruling at the balance sheet date or, if appropriate, at the forward contract
rate. All differences are taken to the profit and loss account.




CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

1. ACCOUNTING POLICIES (cont'd)

Foreign currencies (Cont'd)

Where the trade of a foreign enterprise is more dependent on the economic
environment of the parent company then the Financial Statements of the
undertaking are consolidated using the Temporal method on the following basis:

Fixed assets are translated into sterling at the rates ruling on the
date of acquisition.


Monetary assets and liabilities denominated in a foreign currency are
translated into sterling at the foreign exchange rates ruling at the balance
sheet date.


Revenue and expenses in foreign currencies are recorded in sterling at
the rates ruling at the date of the transactions.


Any gains or losses arising on translation are as reported in the Profit
and Loss Account.

Hire purchase and leasing commitments

Assets held under finance leases, which are leases where substantially all the
risks and rewards of ownership of the asset have passed to the Group, and hire
purchase contracts are capitalised in the balance sheet and are depreciated over
their useful lives. The capital elements of future obligations under leases and
hire purchase contracts are included as liabilities in the balance sheet. The
interest elements of the rental obligations are charged in the profit and loss
account over the periods of the leases and hire purchase contracts and represent
a constant proportion of the balance of capital payments outstanding.

Rentals payable under operating leases are charged in the profit and loss
account on a straight-line basis over the lease term.

2. TURNOVER

The group has yet to receive any trading income.

3. STAFF COSTS
2004 2003
------ ------

Wages and salaries 316,996 -
Social security costs 34,825 -
--------- --------

351,821 -
=========== =======

The average monthly number of employees during the year was as follows:

Management & administration 10 2
Production, technical & operations 25 -
------ --------

35 2
====== =======

Of these employees, all the Production, Technical and Operations Staff are
employed in Kazakhstan.




CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

4. OPERATING LOSS

The operating loss is stated after charging:
2004 2003
------ ------


Depreciation -
owned assets 35,337 -
Depreciation -
assets held under
finance leases and
hire purchase
contracts 1,565 -
Auditors
remuneration 14,688 -
======== ===

Directors'
emoluments and
other benefits 163,067 -
========== ====

Directors' emoluments

D. Greil 88,265
M. Masterman 66,802
M. Garland 4,000
M.R.S. James 4,000

5. INTEREST RECEIVABLE AND SIMILAR INCOME

Bank interest 13,254 838
========= ======

6. INTEREST PAYABLE AND SIMILAR CHARGES

Bank loans,
overdrafts and
other loans
repayable within
five years other
than by instalments 1,272 -
Finance charges -
hire purchase

contracts or
finance leases 5,245 -


6,517 -
====== ====

7. TAXATION

Tax on profit on ordinary activities
Year to 31st
December 2004

The tax charge is made up as follows:
Current tax:
UK Corporation Tax -
Overseas Tax -

Total current tax -


Deferred Tax:
Origination and reversal of timing differences -





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

7. TAXATION (Cont'd)

Total deferred tax -


Tax on profit on ordinary activities -



The difference between the effective provision for
income tax and the statutory tax provision at the
statutory tax rate is reconciled as follows:

Loss on ordinary activities
before tax 380,082

UK Corporation Tax at 30%
Permanent differences: non-deductible expenditure (114,024)
non-taxable foreign exchange
translation 25,797
Timing differences:

tax losses recognised 88,227


Current tax on ordinary activities -

Deferred tax -




As at 31st December 2004, the Group had unrecognised tax losses arising in
Kazakhstan of 21,780 and United Kingdom of 294,091 that are available
indefinitely for offset against future taxable profits of those companies in
which the losses arose, subject to the conditions of deductibility under the
relevant legislation.

Deferred tax assets have not been recognised in respect of these losses. These
assets will be recognised should it become more likely than not that taxable
profits or timing differences, against which they may be deducted, arise.

8. LOSS OF THE PARENT UNDERTAKING

The parent undertaking's loss for the financial year before and after taxation
amounted to 380,082 (2004 profit - 838).

9. LOSS PER ORDINARY SHARE

The calculation of the loss per ordinary share is based on a Group loss of
603,565 to 31st December 2004, and the weighted average ordinary shares
outstanding of 26,929,102 in the year ended 31st December 2004.

On the basis of the above calculation, the loss per ordinary share for the year
to 31st December 2004 is 2.2p.

CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

10. INTANGIBLE FIXED ASSETS

Deferred
Royalty Software Costs Goodwill Total

Group

COST

Acquisitions
at fair value 329,226 309 98,238 1,306,448 1,734,221
Additions - - 224,796 - 224,796
Disposals - - - - -
Exchange
differences 4,854 5 1,448 - 6,307


At 31 December
2004 334,080 314 324,482 1,306,448 1,965,324
======== ======== ======== ======== ========

DEPRECIATION
Acquisitions
at fair value 70,041 61 - - 70,102
Charge for the
year 16,937 62 - - 16,999
Disposals - - - - -
Exchange
differences 1,032 1 - - 1,033


At 31 December
2004 88,010 124 - - 88,134
======== ======== ======== ======== ========

NET BOOK
VALUE

At 31 December
2004 246,070 190 324,482 1,306,448 1,877,190
======== ======== ======== ======== ========

11. TANGIBLE
FIXED ASSETS
Bore Holes Motor Plant and Furniture & Total
Vehicles Equipment Other Equipment



Group

COST

Acquisitions
at fair value - 3,460 8,783 3,919 16,162
Additions 626,430 25,556 95,841 47,305 795,132
Disposals - - - - -
Exchange
differences - 51 130 58 239

At 31 December
2004 626,430 29,067 104,754 51,282 811,533
======== ======== ======== ======== ========
DEPRECIATION
Acquisitions
at fair value - 1,730 5,381 403 7,514
Charge for
year 9,594 2,268 3,907 4,134 19,903
Disposals - - - - -
Exchange
differences - 25 79 6 110

At 31 December
2004 9,594 4,023 9,367 4,543 27,527
======== ======== ======== ======== ========
NET BOOK
VALUE

At 31 December
2004 616,836 25,044 95,387 46,739 784,006

CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

11. TANGIBLE FIXED ASSETS (Cont'd)

Fixed assets, included in the above, which are held under hire purchase
contracts or finance leases are as follows:

Motor Vehicles
-------------
Group


COST

Additions 25,556

Disposals -
Exchange differences -
-------------

At 31 December 2004 25,556
==========

DEPRECIATION

Charge for the year 1,565
Disposals -
Exchange differences -
-------------

At 31 December 2004 1,565
============

NET BOOK VALUE


At 31 December 2004 23,991
==========

12. FIXED ASSET INVESTMENTS

Held by parent undertaking:

The company holds more than 10% of the equity of the following companies:

Name of Company Country of Proportion Held Nature of
----------------- Registration Business
-------------------- ----------------- --------------------

Taraz LLP Kazakhstan 100% Oil Exploration

Subsidiary
Undertakings
--------------------
Company
---------

COST
Additions 1,145,146
-------------

At 31 December
2004 1,145,146
============





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

12. FIXED ASSET INVESTMENTS (Cont'd)

This consisted of:-

Fixed Assets 366,320
Stock and Work in Progress 293
Debtors 8,116
Cash at Bank and in hand 3,118
Creditors (221,127)
Royalty Lease Payments (288,315)
Minority Interest (29,707)
Goodwill 1,306,448
-----------
1,145,146
============

13. STOCKS
Group Group Company Company

2004 2003 2004 2003


Stock and work in progress 90,112 - - -


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group Company Company
---------
2004 2003 2004 2003
------


Trade Debtors 128,373 - - -
Amounts due from subsidiary
undertakings - - 1,532,752 -
Unpaid share capital 13,225 2,000 13,225 2,000
Other debtors 160,905 - 160,905 -
Other loans 56,488 - 56,488
Prepayments and accrued income - - 80,991 -


302,503 58,488 1,787,873 58,488
======== ======== ======== ========

Other debtors include 160,905 relating to sums held by JSC Naryuz Bank
Kazakhstan in temporary conservation. The directors are actively attempting to
recover these sums. No provision has been made for the non return of these sums.

As a result of bank errors, the amount of 13,225 in respect of unpaid share
capital was unpaid at 31st December 2004. This amount has now been fully paid.





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group Company Company 2003
--------------
2004 2003 2004


Trade creditors 23,227 - - -
Amounts owed to related - 16,224 - 16,224
Undertaking
Obligations under finance leases
and 6,732 - - -
hire purchase contracts
Royalty lease payments 54,508 - - -
Social security and other taxes 11,915 - - -
Other creditors and accruals 230,034 39,426 166,321 39,426

326,416 55,650 166,321 55,650

Other creditors and accruals include 140,300 relating to shares issued on
formal completion of the purchase of the remaining 30% interest in Taraz LLP,
which took place on 28th March 2005.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group Company Company
2004 2003 2004 2003

Royalty lease payments 210,832 - - -
Obligations under finance leases
and hire purchase contracts 15,756 - - -


226,588 - - -
======== ======== ======== ====


17. SHARE CAPITAL

Authorised
------------

150,000,000 Ordinary shares of 0.1p each 150,000
==========

Allotted, issued and fully paid
---------------------------------

83,881,685 Ordinary shares of 0.1p each 83,882
==========

On 27 August 2004 the 10,000 authorised Ordinary shares of 1 each were
sub-divided into 1,000 Ordinary shares of 0.1p each. Also on this date the
authorised share capital of the company was increased from 10,000 to 150,000
by the creation of 140,000,000 Ordinary shares of 0.1p each, such shares to rank
pari passu in all respects with the existing Ordinary shares of 0.1p each.




CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

17. SHARE CAPITAL (cont'd)

The following fully paid shares were allotted during the period at a premium as
shown below:

On 1 March 2004 2,120 Ordinary shares of 1 each at 277 per share.

On 30 April 2004 638 Ordinary shares of 1 each at 277 per share.

On 18 May 2004 621 Ordinary shares of 1 each at 555 per share.

On 12 August 2004 371 Ordinary shares of 1 each at 1,000 per share.

On 28 August 2004 250 Ordinary shares of 1 each at 1,000 per share.

On 28 August 2004 54,000,000 Ordinary shares of 0.1p at par value pursuant to a
9 for 1 rights issue.

On 28 August 2004 1,000,000 Ordinary shares of 0.1p at 10p per share.

On 25 October 2004 3,610,000 Ordinary shares of 0.1p each at 23p per share.

On 4 November 2004 17,571,685 Ordinary shares of 0.1p each at 23p per share by
way of public placing.

On 5 November 2004 1,700,000 Ordinary shares of 0.1p each at 23p per share by
way of private placing.

Stock Options:

Stock Options Option Price Exercise Period
Issued --------------
--------------- -----------------
Michael Masterman 2,000,000 0.23p 4th November 2007

Dietmar Greil 2,000,000 0.23p 4th November 2007

Malcolm James 250,000 0.23p 4th November 2007

Michael Garland 250,000 0.23p 4th November 2007

Other staff and
consultants 585,000 0.23p 4th November 2007





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

18. RESERVES AND RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Group Share Capital Other Reserve Share Premium Profit and Loss Total
------- ------------- ------------- --------------- Account Shareholders
------------------ Funds
------------------

Loss for the
financial year - - - (573,858) (573,858)
Increase in
period - 2,775 - - 2,775
Shares issued 81,882 - 7,067,285 - 7,149,167
Costs of Issue - - (979,530) - (979,530)
------------ ------------- -------------- ------------------ ---------------

Net additions
to
shareholders'
funds 81,882 2,775 6,087,755 (573,858) 5,598,554

Opening
shareholders'
funds 2,000 - - 838 2,838
----------- ------------- --------------- ------------------ -----------------

Closing
shareholders'
funds 83,882 2,775 6,087,755 (573,020) 5,601,392
========== ========== ============= ============ ==============

Company
---------
Loss for the
financial year - - - (380,082) (380,082)
Shares issued 81,882 - 7,067,285 - 7,149,167
Costs of Issue - - (979,530) - (979,530)
------------ ------------- -------------- ------------------ ---------------

Net additions
to
shareholders'
funds 81,882 - 6,087,755 (380,082) 5,789,555

Opening
shareholders'
funds 2,000 - - 838 2,838
---------- ------------- --------------- ------------------ -----------------

Closing
shareholders'
funds 83,882 - 6,087,755 (379,244) 5,792,393
========== ============= ============== ============ ==============

19. POST BALANCE SHEET EVENTS

The Company has drilled 3 new wells since 31st December 2004. All wells have
been commercially successful and are now in production.

The shares purchased under the 1st September 2004 minority purchase agreements
have been formally registered in the name of Caspian Holdings Plc such that
Caspian is the fully registered owner of 100% of Taraz LLP.

The Central Bank of Kazakhstan has written formally to the company stating that
it is entitled to the return of USD310,000 in funds that were frozen in a
correspondent bank account at the time of the conservation of Naryuz bank.
Timing of the return of the funds is dependent on the timing of the
recapitalisation of Naryuz bank, the timing of which the company cannot control.
In the event that Naryuz was not recapitalised recovery of the funds would be at
risk.

20. RELATED PARTY TRANSACTIONS

During the year, 7,700 was paid to Northsun Italia SpA, a company of which
Michael Masterman and Dietmar Griel are Directors, for recharge of the use of
courier and telephone services. Recharges were based on the cost from third
party service invoices.

During the year, a loan of US$99,000 was repaid to Caspian Oil Limited, a
company which Michael Masterman and Dietmar Greil were formerly but are not
currently directors.




This information is provided by RNS
The company news service from the London Stock Exchange
SEFE

wilbs

Caspian Holdings plc
27 April 2005




27 April 2005

CASPIAN HOLDINGS PLC
('Caspian' or 'The Company')
Preliminary Results

Caspian Holdings Plc (AIM:CSH) the London-based AIM-quoted company whose primary
activity is the exploration, development and operation of oil fields in the
countries around the Caspian Sea, and in particular Kazakhstan, announces its
preliminary results for the year ended 31 December 2004.

Highlights

* Caspian Holdings PLC admitted on to AIM on 4 November 2004, raising 4.43m
* Acquired 70% of Taraz LLP the owner of the Zengeldy oil field in
Kazakhstan in March 2004
* Constructed Zengeldy oil field operations in 9 months
* Commenced commercial oil production and sales in September 2004
* Drilled 3 new wells and reactivated well number 5
* Applied for expansion of existing licence area to over 30 km2


Post year end highlights

* Completed acquisition of 100% interest in Taraz LLP
* Drilled an additional 4 wells
* Total of 4 wells in production plus 1 under completion
* Produced 10,022 barrels of oil (to 31 March 2005)

Commenting on the results, Michael Masterman, Executive Chairman, said: 'It has
been a strong year for us. The AIM listing in November 2004 provided us with the
funds to acquire 100% and then rapidly develop Zengeldy, our first oil field
which is now in production. Since the listing, we have submitted an application
to expand the licence area of Zengeldy with the view of increasing production
and in addition we continue to actively pursue new projects which we believe
will add value to the company.'

- Ends -

For further information, please contact:

Caspian Holdings Plc Hoodless Brennan Parkgreen Communications
Michael Masterman Luke Cairns Justine Howarth / Ana Ribeiro
T: +447791288381 T: +44 (0) 20 7538 1166 T: +44 (0)20 7493 3713




CHAIRMAN'S STATEMENT


Dear Fellow Shareholder

On behalf of the Board of Directors of Caspian Holdings Plc, I am pleased to
present the first Annual Report of the Company since admission to AIM on 4
November 2004.

The year under review was one of great achievements for the Company. We acquired
and quickly brought into production our first oil field, Zengeldy, and we
completed a successful IPO of the Company raising 4.43m. Since listing we have
moved to expand oil production from the Zengeldy field, submit an application to
expand the licence area, and we are pursuing other fast track oil field
development and production activities around the Caspian Sea.

We now look to 2005 with great anticipation and excitement as we establish
Zengeldy as a commercially self sustaining profit centre for the Company. In
addition we are working to secure an expansion in the current licence area and
we continue to work towards securing new projects that will add to our oil
reserves, oil production capacity and add value for shareholders.

Yours faithfully




Michael Masterman
Executive Chairman


REVIEW OF DEVELOPMENT AND OPERATIONS

Zengeldy
Caspian's first oil project is the Zengeldy field located 18km from Makat in the
pre Caspian Basin. The field was acquired through the acquisition of Taraz LLP,
the owner of the Zengeldy subsoil contract in February 2004.

Caspian moved forward to commence initial development of the Zengeldy field
through 2004 and early 2005. The initial focus has been on bringing into
production the Jurassic and Triassic reserves.

The top of the Zengeldy salt dome is in the north of the licence area at a depth
of approximately 450m and the above sequence only contains Jurassic, Neocomian
and Apt oil bearing levels. The Triassic targets are in the east, south, and
west areas of the licence with the most promising reserves in the western areas
below a salt lake which will be drilled in the summer of 2005.

Four wells have been drilled in the Jurassic - 113, 114, 111 and 112 - and all
wells have been brought into production. Each of the wells has multiple
production levels and production to date has been from a single productive
level. The additional levels will be brought on in series (not parallel)
extending well life and recovery (but with lower initial daily rates).
Production from wells 113, 111, and 112 has been broadly in line with
expectations for these shallow Jurassic wells of about 50-70 barrels per day per
well. Production from the lower level of 114 has been minimal due to low
permeability in this layer - production from the higher layer will be brought
into production later this year. Jurassic production was 590 bbls in the
December Quarter 2004 and has since risen rapidly to 7,351 bbls in the March
Quarter 2005. Further increases are expected in the June Quarter 2005 as new
wells including the recently drilled 116 are brought online, flow lines and
improved storage are installed and weather conditions improve.

Winter drilling on Triassic targets has focused on the southern and eastern
areas of the licence. A previous well, Well 5, was reactivated in June 2004 and
the well logs, within the cased well showed a 15m oil pay with 32m in the lower
open section. The well initially produced good quantities of oil but due to poor
cementation in the old well casing, the well was shut down due to water influx
from the higher levels. Well 123 drilled further to the south of Well 5 was dry
due to a change in lithology from clean to shale sands. In the eastern Triassic
targets well 115 had oil shows but insufficient oil saturation for commercial
production. Updated evaluation of the geological model shows that the bulk
Triassic reserves lie in the west of the licence area under the salt lake and to
the west. The lake should be sufficiently dry to commence drilling activities in
the third quarter 2005.

Overall Zengeldy field production in 2004 and early 2005 has been limited to
production from the Jurassic level reserves and is currently running at
approximately 150 barrels per day. Significant increases in production are
dependent on the success of the summer Triassic drilling program.

Based on geological modelling work, Caspian is of the view that the Zengeldy oil
bearing structure extends to the west of the existing licence area. An
application has been made to the Kazak Ministry to extend the licence area to 30
square km. The Ministry is currently evaluating the application. In parallel we
have had positive discussions with the owner of the adjacent exploration block
regarding joint development of the extension area. We expect a positive outcome
from the application and negotiations in mid 2005.

A 3D seismic program is also planned during the summer to better define the
geological model and reserves estimates. A comprehensive review and revision of
the geological model and associated reserves estimates will then be completed to
incorporate the results of all wells drilled including the summer Triassic
program, the extension and the 3D seismic results. On the basis of drilling to
date the Directors are optimistic that the review could lead to an upgrade in
the Jurassic reserve estimates.

New Projects
The Company continues to actively evaluate new projects in Kazakhstan and the
other countries around the Caspian Sea. Progress has been made in the screening,
evaluation and negotiation process and tangible results will be released to the
market in accordance with the continuous disclosure requirements.

CONSOLIDATED FINANCIAL STATEMENTS

CASPIAN HOLDINGS Plc

GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004

Notes 2004 2003


TURNOVER 2 - -

Administrative expenses 610,302 -


OPERATING LOSS 4

Acquisitions (150,067) -
Continuing operations (460,235) -
(610,302) -
Interest receivable and similar income 5 13,254 838

Interest payable and similar charges 6 (6,517) -

LOSS/PROFIT ON ORDINARY ACTIVITIES
BEFORE (603,565) 838
TAXATION

Tax on loss/profit on ordinary 7 - -
activities

LOSS/PROFIT FOR THE FINANCIAL YEAR
AFTER (603,565) 838
TAXATION

Minority equity interests 29,707 -


RETAINED (LOSS)/PROFIT FOR THE (573,858) 838
FINANCIAL YEAR

====
Basic and Diluted loss per share 9 2.2p -






The notes form part of these financial statements



CASPIAN HOLDINGS Plc

GROUP BALANCE SHEET
31 DECEMBER 2004


Notes 2004 2003
------- ------
FIXED ASSETS
Intangible assets 10 1,877,190 -
Tangible assets 11 784,006 -
--------- ------
2,661,196 -

CURRENT ASSETS
Stocks 13 90,112 -
Debtors 14 302,503 58,488
Cash at bank and 3,100,585 -
in hand ----------- ------------

3,493,200 58,488

CREDITORS:
Amounts falling 15 326,416 55,650
due within one ---------- -------------
year

NET CURRENT 3,166,784 2,838
ASSETS ------------- -------

TOTAL ASSETS
LESS
CURRENT 5,827,980 2,838
LIABILITIES

CREDITORS:
Amounts falling 16 226,588 -
due after more ------------- -------
than one year

5,601,392 2,838
============== ========
CAPITAL AND
RESERVES
Called up share 17 83,882 2,000
capital
Share premium 18 6,087,755 -
account
Other reserve 18 2,775 -
Profit and loss 18 (573,020) 838
account -------------- --------

Shareholders' 5,601,392 2,838
funds =============== ========

Shareholders'
funds
attributable to
Equity interest 5,601,392 2,838
============= ========





The notes form part of these financial statements



CASPIAN HOLDINGS Plc
COMPANY BALANCE SHEET
31 DECEMBER 2004

Notes 2004 2003

FIXED ASSETS
Investments 12 1,145,146 -

CURRENT ASSETS
Debtors 14 1,787,873 58,488
Cash at bank and 3,025,695 -
in hand -------------- -------
4,813,568 58,488

CREDITORS:
Amounts falling 15 166,321 55,650
due within ------------- --------
one year

NET CURRENT 4,647,247 2,838
ASSETS ----------- --------

TOTAL ASSETS
LESS
CURRENT 5,792,393 2,838
LIABILITIES ============= ==========

CAPITAL AND
RESERVES
Called up share 17 83,882 2,000
capital
Share premium 18 6,087,755 -
account
Profit and loss 18 (379,244) 838
account ----------- -----------

Shareholders' 5,792,393 2,838
funds ============ ==========

Shareholders'
funds
attributable to
Equity interest 5,792,393 2,838
============ ==========






The notes form part of these financial statements

CASPIAN HOLDINGS Plc
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004

Notes 2004 2003
------- -------

Net cash outflow
from operating activities 1 (1,051,019) (2,838)

Returns on investments and
servicing of 2 6,737 838
finance

Capital expenditure
and financial investment 2 (1,025,330) -

Acquisitions and disposals 2 (861,428) -
----------- --------

(2,913,040) (2,000)

Financing 2 6,031,625 2,000
----------------- -------

Increase in cash in the period 3,100,585 -
================= ====

Reconciliation of net cash flow to 3
movement in net debt

Increase in cash in the period 3,100,585 -
Cash outflow from decrease in
debt and 487 -
lease financing ----- ---

Change in net debt resulting
from cash 3,101,072 -
flows

Royalty payments acquired (288,315) -
----------------- ---

Movement in net debt in the 2,812,757 -
period

Net debt at 1 January 2004 - -
---------------- ---

Net debt at 31 December 2004 2,812,757 -
============ ==============



The notes form part of these financial statements


CASPIAN HOLDINGS Plc

NOTES TO THE GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2004

1. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

2004 2003
------- -------

Operating Loss (610,302) -

Depreciation charges 36,902 -

(Increase) in stocks (89,819) -

(Increase) in debtors (235,899) (58,488)

(Decrease)/Increase in creditors (151,901) 55,650
------------------ --------
Net cash inflow

from operating activities (1,051,019) (2,838)
================ ==========

2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

Returns on investments and servicing of finance
Interest received 13,254 838
Interest Paid (6,517) -
--------- ------------

Net cash outflow for returns on investments and
servicing of finance 6,737 838
======== ======

Capital expenditure and financial investment

Purchase of intangible fixed assets (224,796) -
Purchase of tangible fixed assets (795,132) -
Exchange differences (5,402) -
--------- ---
Net cash outflow for capital expenditure and
financial (1,025,330) -
investment ============== ====

Acquisitions and disposals
Purchase of subsidiaries (864,546) -
Cash acquired 3,118 -
-------- ---

Net cash outflow for acquisitions and disposals (861,428) -
============ ====

Financing

Movement on other reserve 2,775 -

Share issue 6,029,337 2,000

Capital element of hire purchase or finance 22,488 -
leases

Capital element of royalty payments (22,975) -
-------------- ---------------

Net cash (outflow)/inflow from financing 6,031,625 2,000
============ ========

The notes form part of these financial statements

CASPIAN HOLDINGS Plc
NOTES TO THE GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2004

3. ANALYSIS OF CHANGES IN NET DEBT

Acquisitions
--------------
Cash flow (Excl. cash) At 31.12.04
----------- -------------- -------------

Net cash:
Cash at bank and in hand 3,100,585 - 3,100,585
-------------- ---------------- --------------------

Debt:
Hire purchase or finance (22,488) - (22,488)
leases
Royalty lease payments 22,975 (288,315) (265,340)
--------------- -------------- -----------------

487 (288,315) (287,828)
--------------- -------------- -----------------
---
Total 3,101,072 (288,315) 2,812,757
============= ============= =============

Analysed in Balance
Sheet


Cash at bank and in hand 3,100,585
Hire purchase or finance
leases
within one year (6,732)
after one year (15,756)
Royalty lease payments
within one year (54,508)
after one year (210,832)
-------------

Net Debt 2,812,757
=============

4. PURCHASE OF SUBSIDIARIES

Net assets acquired


Fixed assets 366,320
Stock and work in progress 293
Debtors 8,116
Cash at bank and in hand 3,118
Creditors (221,127)
Royalty lease payments (288,315)
Minority interest (29,707)
Goodwill 1,306,448
----------------

1,145,146
================
Satisfied by


Cash 864,546
Issued share capital 140,300
Share capital to be issued 140,300
-------------

1,145,146
============


The notes form part of these financial statements

CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared in accordance with applicable United
Kingdom accounting standards under the historical cost convention.

Basis of consolidation

The consolidated financial statements include the accounts of subsidiaries made
up to 31 December 2004.

On 8 April 2004 formal completion of the acquisition of 70% of the capital of
Taraz LLP took place. The consolidated financial statements include the results
of Taraz LLP for the year ended 31 December 2004. The directors consider that
the pre acquisition results of Taraz LLP are not material to the results shown
in the consolidated profit and loss account. The directors have adopted this
accounting treatment in order that the consolidated results of the group show a
true and fair view.

On 1 September 2004, the company signed an agreement to acquire the remaining
30% interest in Taraz LLP, formal completion of which took place on 28th March
2005. The directors consider that, in order for the consolidated accounts to
show a true and fair view, that Taraz LLP is consolidated as a wholly owned
subsidiary of the company. Interim audited consolidated accounts were prepared
to 30 June 2004 and these accounts have been used to calculate the goodwill
arising on the purchase of the remaining 30% interest in Taraz LLP. The
directors consider that the results for the two months 1 July 2004 to 1
September 2004 are not material.

No profit or loss account is presented for the company as permitted by S230 (3)
of the Companies Act 1985.

Goodwill

Goodwill arising on consolidation, which represents the excess of the purchase
price over the fair value of net assets acquired, is shown in the balance sheet
as an asset and will be amortised evenly over its estimated useful life once
trading has commenced. In addition to the systematic amortisation, the book
value is written down to recoverable amount when any impairment is identified.

The directors consider the estimated useful life of goodwill to be in line with
the contract between Taraz LLP and the Government of the Republic of Kazakhstan
for the exclusive right to use the subsurface on the Zhengeldy oil field which
terminates on 27 May 2024.

Intangible fixed assets

Amortisation is calculated and provided in order to write off each asset over
its estimated useful economic life, such amortisation to commence when the asset
concerned is initially used within the business.

Royalty - 5% - 33% on cost
Software - 5% - 33% on cost

Deferred costs represent costs for preparatory work for oil production. These
costs are to be written over a period of 4 years starting in the year that the
first income from selling oil is received.



CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

1. ACCOUNTING POLICIES (cont'd)

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off
each asset over its estimated useful life or, if held under finance lease, over
the lease term, whichever is the shorter.

Bore holes - 10% on cost
Motor vehicles - 20% on cost
Plant and equipment - 20% - 33% on cost
Furniture and other equipment - 10% - 33% on cost

Deferred Tax

The tax charge is based on the profit for the period and takes into account
taxation deferred because of timing differences between the treatment of certain
items for taxation and accounting purposes. Deferred tax is recognised in
respect of all timing differences that have originated but not reversed at the
balance sheet date where transactions or events have occurred at that date that
will result in an obligation to pay more, or a right to pay less or to receive
more, tax, in the future. In particular:

Provision is made for tax on gains arising from the revaluation (and
similar fair value adjustments) of fixed assets, and gains on disposal of
fixed assets that have been rolled over into replacement assets, only to the
extent that, at the balance sheet date, there is a binding agreement to
dispose of the assets concerned. However, no provision is made where, on the
basis of all available evidence at the balance sheet date, it is more likely
than not that the taxable gain will be rolled over into replacement assets
and charged to tax only where the replacement assets are sold.


Provision is made for deferred tax that would arise on remittance of the
retained earnings of overseas subsidiaries, associates and joint ventures
only to the extent that, at the balance sheet date, dividends have been
accrued as receivable.


Deferred tax assets are recognised only to the extent that the Directors
consider that it is more likely than not that there will be suitable taxable
profits from which the future reversal of the underlying timing differences
can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are
expected to apply in the periods in which timing differences reverse, based on
tax rates and laws enacted or substantively enacted at the balance sheet date.

Stock

Stock is valued at the lower of cost and net realisable value, after making due
allowance for obsolete and slow moving items.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction or at the contracted rate. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the rate of exchange
ruling at the balance sheet date or, if appropriate, at the forward contract
rate. All differences are taken to the profit and loss account.




CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

1. ACCOUNTING POLICIES (cont'd)

Foreign currencies (Cont'd)

Where the trade of a foreign enterprise is more dependent on the economic
environment of the parent company then the Financial Statements of the
undertaking are consolidated using the Temporal method on the following basis:

Fixed assets are translated into sterling at the rates ruling on the
date of acquisition.


Monetary assets and liabilities denominated in a foreign currency are
translated into sterling at the foreign exchange rates ruling at the balance
sheet date.


Revenue and expenses in foreign currencies are recorded in sterling at
the rates ruling at the date of the transactions.


Any gains or losses arising on translation are as reported in the Profit
and Loss Account.

Hire purchase and leasing commitments

Assets held under finance leases, which are leases where substantially all the
risks and rewards of ownership of the asset have passed to the Group, and hire
purchase contracts are capitalised in the balance sheet and are depreciated over
their useful lives. The capital elements of future obligations under leases and
hire purchase contracts are included as liabilities in the balance sheet. The
interest elements of the rental obligations are charged in the profit and loss
account over the periods of the leases and hire purchase contracts and represent
a constant proportion of the balance of capital payments outstanding.

Rentals payable under operating leases are charged in the profit and loss
account on a straight-line basis over the lease term.

2. TURNOVER

The group has yet to receive any trading income.

3. STAFF COSTS
2004 2003
------ ------

Wages and salaries 316,996 -
Social security costs 34,825 -
--------- --------

351,821 -
=========== =======

The average monthly number of employees during the year was as follows:

Management & administration 10 2
Production, technical & operations 25 -
------ --------

35 2
====== =======

Of these employees, all the Production, Technical and Operations Staff are
employed in Kazakhstan.




CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

4. OPERATING LOSS

The operating loss is stated after charging:
2004 2003
------ ------


Depreciation -
owned assets 35,337 -
Depreciation -
assets held under
finance leases and
hire purchase
contracts 1,565 -
Auditors
remuneration 14,688 -
======== ===

Directors'
emoluments and
other benefits 163,067 -
========== ====

Directors' emoluments

D. Greil 88,265
M. Masterman 66,802
M. Garland 4,000
M.R.S. James 4,000

5. INTEREST RECEIVABLE AND SIMILAR INCOME

Bank interest 13,254 838
========= ======

6. INTEREST PAYABLE AND SIMILAR CHARGES

Bank loans,
overdrafts and
other loans
repayable within
five years other
than by instalments 1,272 -
Finance charges -
hire purchase

contracts or
finance leases 5,245 -


6,517 -
====== ====

7. TAXATION

Tax on profit on ordinary activities
Year to 31st
December 2004

The tax charge is made up as follows:
Current tax:
UK Corporation Tax -
Overseas Tax -

Total current tax -


Deferred Tax:
Origination and reversal of timing differences -





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

7. TAXATION (Cont'd)

Total deferred tax -


Tax on profit on ordinary activities -



The difference between the effective provision for
income tax and the statutory tax provision at the
statutory tax rate is reconciled as follows:

Loss on ordinary activities
before tax 380,082

UK Corporation Tax at 30%
Permanent differences: non-deductible expenditure (114,024)
non-taxable foreign exchange
translation 25,797
Timing differences:

tax losses recognised 88,227


Current tax on ordinary activities -

Deferred tax -




As at 31st December 2004, the Group had unrecognised tax losses arising in
Kazakhstan of 21,780 and United Kingdom of 294,091 that are available
indefinitely for offset against future taxable profits of those companies in
which the losses arose, subject to the conditions of deductibility under the
relevant legislation.

Deferred tax assets have not been recognised in respect of these losses. These
assets will be recognised should it become more likely than not that taxable
profits or timing differences, against which they may be deducted, arise.

8. LOSS OF THE PARENT UNDERTAKING

The parent undertaking's loss for the financial year before and after taxation
amounted to 380,082 (2004 profit - 838).

9. LOSS PER ORDINARY SHARE

The calculation of the loss per ordinary share is based on a Group loss of
603,565 to 31st December 2004, and the weighted average ordinary shares
outstanding of 26,929,102 in the year ended 31st December 2004.

On the basis of the above calculation, the loss per ordinary share for the year
to 31st December 2004 is 2.2p.

CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

10. INTANGIBLE FIXED ASSETS

Deferred
Royalty Software Costs Goodwill Total

Group

COST

Acquisitions
at fair value 329,226 309 98,238 1,306,448 1,734,221
Additions - - 224,796 - 224,796
Disposals - - - - -
Exchange
differences 4,854 5 1,448 - 6,307


At 31 December
2004 334,080 314 324,482 1,306,448 1,965,324
======== ======== ======== ======== ========

DEPRECIATION
Acquisitions
at fair value 70,041 61 - - 70,102
Charge for the
year 16,937 62 - - 16,999
Disposals - - - - -
Exchange
differences 1,032 1 - - 1,033


At 31 December
2004 88,010 124 - - 88,134
======== ======== ======== ======== ========

NET BOOK
VALUE

At 31 December
2004 246,070 190 324,482 1,306,448 1,877,190
======== ======== ======== ======== ========

11. TANGIBLE
FIXED ASSETS
Bore Holes Motor Plant and Furniture & Total
Vehicles Equipment Other Equipment



Group

COST

Acquisitions
at fair value - 3,460 8,783 3,919 16,162
Additions 626,430 25,556 95,841 47,305 795,132
Disposals - - - - -
Exchange
differences - 51 130 58 239

At 31 December
2004 626,430 29,067 104,754 51,282 811,533
======== ======== ======== ======== ========
DEPRECIATION
Acquisitions
at fair value - 1,730 5,381 403 7,514
Charge for
year 9,594 2,268 3,907 4,134 19,903
Disposals - - - - -
Exchange
differences - 25 79 6 110

At 31 December
2004 9,594 4,023 9,367 4,543 27,527
======== ======== ======== ======== ========
NET BOOK
VALUE

At 31 December
2004 616,836 25,044 95,387 46,739 784,006

CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

11. TANGIBLE FIXED ASSETS (Cont'd)

Fixed assets, included in the above, which are held under hire purchase
contracts or finance leases are as follows:

Motor Vehicles
-------------
Group


COST

Additions 25,556

Disposals -
Exchange differences -
-------------

At 31 December 2004 25,556
==========

DEPRECIATION

Charge for the year 1,565
Disposals -
Exchange differences -
-------------

At 31 December 2004 1,565
============

NET BOOK VALUE


At 31 December 2004 23,991
==========

12. FIXED ASSET INVESTMENTS

Held by parent undertaking:

The company holds more than 10% of the equity of the following companies:

Name of Company Country of Proportion Held Nature of
----------------- Registration Business
-------------------- ----------------- --------------------

Taraz LLP Kazakhstan 100% Oil Exploration

Subsidiary
Undertakings
--------------------
Company
---------

COST
Additions 1,145,146
-------------

At 31 December
2004 1,145,146
============





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

12. FIXED ASSET INVESTMENTS (Cont'd)

This consisted of:-

Fixed Assets 366,320
Stock and Work in Progress 293
Debtors 8,116
Cash at Bank and in hand 3,118
Creditors (221,127)
Royalty Lease Payments (288,315)
Minority Interest (29,707)
Goodwill 1,306,448
-----------
1,145,146
============

13. STOCKS
Group Group Company Company

2004 2003 2004 2003


Stock and work in progress 90,112 - - -


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group Company Company
---------
2004 2003 2004 2003
------


Trade Debtors 128,373 - - -
Amounts due from subsidiary
undertakings - - 1,532,752 -
Unpaid share capital 13,225 2,000 13,225 2,000
Other debtors 160,905 - 160,905 -
Other loans 56,488 - 56,488
Prepayments and accrued income - - 80,991 -


302,503 58,488 1,787,873 58,488
======== ======== ======== ========

Other debtors include 160,905 relating to sums held by JSC Naryuz Bank
Kazakhstan in temporary conservation. The directors are actively attempting to
recover these sums. No provision has been made for the non return of these sums.

As a result of bank errors, the amount of 13,225 in respect of unpaid share
capital was unpaid at 31st December 2004. This amount has now been fully paid.





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group Company Company 2003
--------------
2004 2003 2004


Trade creditors 23,227 - - -
Amounts owed to related - 16,224 - 16,224
Undertaking
Obligations under finance leases
and 6,732 - - -
hire purchase contracts
Royalty lease payments 54,508 - - -
Social security and other taxes 11,915 - - -
Other creditors and accruals 230,034 39,426 166,321 39,426

326,416 55,650 166,321 55,650

Other creditors and accruals include 140,300 relating to shares issued on
formal completion of the purchase of the remaining 30% interest in Taraz LLP,
which took place on 28th March 2005.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group Company Company
2004 2003 2004 2003

Royalty lease payments 210,832 - - -
Obligations under finance leases
and hire purchase contracts 15,756 - - -


226,588 - - -
======== ======== ======== ====


17. SHARE CAPITAL

Authorised
------------

150,000,000 Ordinary shares of 0.1p each 150,000
==========

Allotted, issued and fully paid
---------------------------------

83,881,685 Ordinary shares of 0.1p each 83,882
==========

On 27 August 2004 the 10,000 authorised Ordinary shares of 1 each were
sub-divided into 1,000 Ordinary shares of 0.1p each. Also on this date the
authorised share capital of the company was increased from 10,000 to 150,000
by the creation of 140,000,000 Ordinary shares of 0.1p each, such shares to rank
pari passu in all respects with the existing Ordinary shares of 0.1p each.




CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

17. SHARE CAPITAL (cont'd)

The following fully paid shares were allotted during the period at a premium as
shown below:

On 1 March 2004 2,120 Ordinary shares of 1 each at 277 per share.

On 30 April 2004 638 Ordinary shares of 1 each at 277 per share.

On 18 May 2004 621 Ordinary shares of 1 each at 555 per share.

On 12 August 2004 371 Ordinary shares of 1 each at 1,000 per share.

On 28 August 2004 250 Ordinary shares of 1 each at 1,000 per share.

On 28 August 2004 54,000,000 Ordinary shares of 0.1p at par value pursuant to a
9 for 1 rights issue.

On 28 August 2004 1,000,000 Ordinary shares of 0.1p at 10p per share.

On 25 October 2004 3,610,000 Ordinary shares of 0.1p each at 23p per share.

On 4 November 2004 17,571,685 Ordinary shares of 0.1p each at 23p per share by
way of public placing.

On 5 November 2004 1,700,000 Ordinary shares of 0.1p each at 23p per share by
way of private placing.

Stock Options:

Stock Options Option Price Exercise Period
Issued --------------
--------------- -----------------
Michael Masterman 2,000,000 0.23p 4th November 2007

Dietmar Greil 2,000,000 0.23p 4th November 2007

Malcolm James 250,000 0.23p 4th November 2007

Michael Garland 250,000 0.23p 4th November 2007

Other staff and
consultants 585,000 0.23p 4th November 2007





CASPIAN HOLDINGS Plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2004

18. RESERVES AND RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Group Share Capital Other Reserve Share Premium Profit and Loss Total
------- ------------- ------------- --------------- Account Shareholders
------------------ Funds
------------------

Loss for the
financial year - - - (573,858) (573,858)
Increase in
period - 2,775 - - 2,775
Shares issued 81,882 - 7,067,285 - 7,149,167
Costs of Issue - - (979,530) - (979,530)
------------ ------------- -------------- ------------------ ---------------

Net additions
to
shareholders'
funds 81,882 2,775 6,087,755 (573,858) 5,598,554

Opening
shareholders'
funds 2,000 - - 838 2,838
----------- ------------- --------------- ------------------ -----------------

Closing
shareholders'
funds 83,882 2,775 6,087,755 (573,020) 5,601,392
========== ========== ============= ============ ==============

Company
---------
Loss for the
financial year - - - (380,082) (380,082)
Shares issued 81,882 - 7,067,285 - 7,149,167
Costs of Issue - - (979,530) - (979,530)
------------ ------------- -------------- ------------------ ---------------

Net additions
to
shareholders'
funds 81,882 - 6,087,755 (380,082) 5,789,555

Opening
shareholders'
funds 2,000 - - 838 2,838
---------- ------------- --------------- ------------------ -----------------

Closing
shareholders'
funds 83,882 - 6,087,755 (379,244) 5,792,393
========== ============= ============== ============ ==============

19. POST BALANCE SHEET EVENTS

The Company has drilled 3 new wells since 31st December 2004. All wells have
been commercially successful and are now in production.

The shares purchased under the 1st September 2004 minority purchase agreements
have been formally registered in the name of Caspian Holdings Plc such that
Caspian is the fully registered owner of 100% of Taraz LLP.

The Central Bank of Kazakhstan has written formally to the company stating that
it is entitled to the return of USD310,000 in funds that were frozen in a
correspondent bank account at the time of the conservation of Naryuz bank.
Timing of the return of the funds is dependent on the timing of the
recapitalisation of Naryuz bank, the timing of which the company cannot control.
In the event that Naryuz was not recapitalised recovery of the funds would be at
risk.

20. RELATED PARTY TRANSACTIONS

During the year, 7,700 was paid to Northsun Italia SpA, a company of which
Michael Masterman and Dietmar Griel are Directors, for recharge of the use of
courier and telephone services. Recharges were based on the cost from third
party service invoices.

During the year, a loan of US$99,000 was repaid to Caspian Oil Limited, a
company which Michael Masterman and Dietmar Greil were formerly but are not
currently directors.




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