Santos asked Caspian Oil and Gas for an extension on their leases....these leases are in same area as the Manas leases with Santos...likely IMO same extension for Manas.....this is stage 3 in the agreements....the final step to earn full option rights...I follow both since Santos is the key player....if Santos steps up....both are winners...big $$

Santos International Operations Pty Ltd has requested an additional two months until 28 February

2010 to enable interpretation of recent seismic data acquisition, integration of this data and to

conduct final permit assessments before deciding whether to enter Phase III of the farmin

agreement with Caspian. The Company believes this will be the last request for extension from

Santos and based on the technical arguments relating to difficult seismic processing, Caspian has

consented to this request.

Testing of Caspian’s Mailisu III #6 well has been delayed by the loss of a swapping tool in the hole.

A replacement tool is expected to be delivered within 1-2 weeks, at which time the perforation and

flow testing programme will recommence.