Caspian Energy Inc.

January 22, 2010 09:19 ET

Caspian Energy Inc. Provides Update on North Block Divestiture

CALGARY, ALBERTA--(Marketwire - Jan. 22, 2010) - Caspian Energy Inc. ("Caspian" or the "Company") (TSX:CEK) has been requested by market regulators to issue a press release to comment on the recent increase in trading volume of its common shares on the Toronto Stock Exchange.

Caspian previously announced on November 5, 2009 that in order to fund its ongoing obligations, it was pursuing a farmout or sale of the North Block. In this regard, several parties indicated interest and the Company previously entered into a non-binding letter of intent to complete a farmout arrangement for a portion of its 50% interest in Aral Petroleum Capital LLP, which letter of intent has since expired. Negotiations to execute a definitive agreement are continuing, however the outcome of these discussions cannot be determined with certainty. No definitive agreements have been entered into with any party in connection with a farmout or sale of the North Block to date, and the Company will issue a further press release in the event that any such definitive agreements are entered into in the future.

Caspian is an oil and gas exploration and development company, operating in Kazakhstan where it has a number of targets in the highly prospective Aktobe Oblast of Western Kazakhstan. The Company holds an exclusive licence which entitles it to explore and develop certain oil and gas properties known as the "North Block", an area of 3,458 square km, through a 50% stake in Aral Petroleum Capital LLP.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Caspian, including, but not limited to the impact of general economic conditions, industry conditions, currency fluctuations, and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Contact Information

  • Caspian Energy Inc.
    William Ramsay
    President and Chief Executive Officer
    00 44 (0)20 7861 3232
    Caspian Energy Inc.
    Brian Korney
    Chief Financial Officer
    (403) 513-3375