Caspian Energy Inc.
TSX : CEK
AIM : CEK

June 14, 2005 16:58 ET

Caspian Energy Inc. Announces Results

TORONTO, ONTARIO--(CCNMatthews - June 14 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Caspian Energy Inc. (the "Company" or "CEK") (TSX:CEK)(AIM:CEK) announced today its financial results for the three months commencing February 1, 2005 and ending April 30, 2005 (1Q 06). Its unaudited consolidated interim financial statements for the period and related management's discussion and analysis have been filed with Canadian securities regulatory authorities and are available for viewing at www.sedar.com. All amounts are expressed in Canadian dollars unless otherwise indicated.

For 1Q 06, CEK's net loss was $1,017,293. Large non-cash items equal to $424,078 relating to stock-based compensation charges and $542,351 pertaining to unrealized foreign exchange losses contributed to this figure.

CEK's operations used $16,751 in cash for 1Q 06. The Company's working capital was $31.5 million at the close of the quarter.

Oil and gas revenues before transportation costs for 1Q 06 were $596,970.

For the period, operating costs were $341,818 ($10.89/boe) and transportation expenses were $3,918 ($0.12/boe). Administrative expenses for the quarter were $709,438.

Capital expenditures totaled $3,155,146, for the period. Capital expenditures are composed of advances to Aral Petroleum Capital joint venture and the Company's share of the expenditure of funds by Aral.

Caspian's first exploration well, East Zhagabulak #301, is expected to spud during June 2005 and is in the same geological trend as the Company's currently producing well, EZ #213. The drilling location has been constructed and the drilling rig is being mobilized to the site. All of the material, equipment and personnel for the drilling program are in Kazakhstan. This well is expected to cost in the range of US$6.8 million to US$9.2 million and to reach a depth of 5,000 metres.

The Company is an oil exploration and development corporation operating in the Republic of Kazakhstan.

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.

Contact Information

  • Caspian Energy Inc.
    William Ramsay
    President and Chief Executive Officer
    00 7 3272 54 31 27
    or
    Bell Pottinger Corporate and Financial
    Geoff Callow
    020 7861 3232