Caspian Energy Inc.

March 08, 2005 10:31 ET

Caspian Acquires Rights to New Territory


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CASPIAN ENERGY INC.

TSX, AIM SYMBOL: CEK

MARCH 8, 2005 - 10:31 ET

Caspian Acquires Rights to New Territory

TORONTO, ONTARIO--(CCNMatthews - March 8, 2005) - Caspian Energy Inc
(TSX:CEK) (AIM:CEK) -

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR
INTO THE UNITED STATES, AUSTRALIA OR JAPAN

Extension of Contract With The Government of Kazakhstan

Preliminary Seismic Information Interpreted

Caspian Energy Inc ("Caspian" or the "Company"), an oil and gas
exploration company operating in Kazakhstan, today announces that Aral
Petroleum Capital LLP ("Aral") has completed negotiations with the
Government of Kazakhstan and has been awarded 1110 sq. km. of adjacent
territory to the north and west of the North Block. The North Block lies
immediately adjacent to the various producing fields, including
Alibekmola, South Alibek, Zhanazhol, and Kenkiyak fields. With this
acquisition, the size of the North Block has been expanded by 47%. The
combined territory is now 3458 sq. km. Aral has also received approval
from the Government of Kazakhstan to extend its exploration Contract for
a further two years, throughout calendar 2006 and 2007.

Current geophysical information indicates that a series of geological
features associated with salt domes that extend from the western and
north-western portion of the North Block are now captured within the new
area extension.

Aral has also received preliminary interpreted 3D seismic data from the
400 sq. km. 3D programme in the Zhagabulak Area. The Zhagabulak Area is
located in the southeast corner of the North Block and encompasses the
oil-producing Well 213. To date, 140 sq. Km of the 3D has been processed
and interpreted. Preliminary interpretation of the data indicates the
presence of significant structures. Aral has signed a letter of intent
with Nabors Drilling International for the drilling of two exploration
wells in the Zhagabulak Area. Drilling is projected to start at the end
of the second quarter, the precise date will depend on the start of the
spring thaw in the region.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction.

CAUTIONARY NOTE

Some of the statements and information contained in this news release
may include certain estimates, assumptions and other forward-looking
information. The actual performance, developments and/or results of the
Company may differ materially from any or all of the forward-looking
statements, which include current expectations, estimates and
projections, in all or in part attributable to general economic
conditions, and other risks, uncertainties and circumstances partly or
totally outside the control of the Company, including oil prices,
imprecision of reserve estimates, drilling risks, future production of
gas and oil, rates of inflation, changes in future costs and expenses
related to the activities involving the exploration, development,
production and transportation of oil, hedging, financing availability
and other risks related to financial activities, and environmental and
geopolitical risks. Further information which may cause results to
differ materially from those projected in the forward-looking statements
is contained in the Company's filings with Canadian securities
regulatory authorities. The Company disclaims any intention or
obligation to update or revise forward-looking information, whether as a
result of new information, future events or otherwise, except in
accordance with applicable securities laws.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Caspian Energy Inc.
    William A.G. Ramsay
    020 7861 3232
    020 7861 3233 (FAX)
    or
    Bell Pottinger Corporate & Financial
    Geoff Callow
    020 7861 3232