Caspian Energy Inc.
TSX : CEK
AIM : CEK

June 19, 2008 10:00 ET

Caspian Energy Inc.: Final Results of First Well in Post-Salt Drilling Program

LONDON, UNITED KINGDOM--(Marketwire - June 19, 2008) -

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

Caspian Energy Inc (the "Company") (TSX:CEK)(AIM:CEK), an oil and gas exploration company operating in Kazakhstan, today announces that Aral Petroleum Capital LLP ("Aral"), in which the Company holds a 50% indirect interest, has reached a total depth of 2,521 metres and logged its first exploration well, Baktygaryn #703, in its post-salt drilling program. The well has been determined to be a dry hole and is being prepared for plugging.

Baktygaryn #703

The vertical well, Baktygaryn #703, was designed to test sandstone reservoirs in both the Triassic and Upper Permian in traps created by one of the several Permian Kungurian salt ridges running through the North Block. The well reached a total depth of 2,521 metres in the Permian salt without encountering reservoir quality rocks in the Permian section.

Based on the presence of strong seismic reflectors, the Upper Permian target had been interpreted to be potential sandstone reservoirs trapped below the overhang of a salt wing. However, upon reaching the interpreted depth of these seismic anomalies, the well instead encountered alternating layers of claystones and anhydrites.

Whilst electric logging has confirmed the absence of reservoir sands, it has also revealed the presence of high quality Triassic sands with porosities averaging 22% over 169 metres (net) of sandstone. The location of the vertical wellbore, however, was chosen to primarily target the Upper Permian seismic anomalies and even though the well encountered reservoir quality sandstones in the Triassic it intersected the reservoirs in a down dip position. The presence of these reservoir-quality sands in the Triassic supports the interpretation that the Triassic is a viable primary target in the area.

New Prospects

The Company remains confident on the remaining targets in its post-salt drilling program. As Baktygaryn #703 was the only prospect associated with what was interpreted as a salt overhang and was also the deepest well on the prospect list, the prospectivity of the remaining targets is not affected by the results of Baktygaryn #703.

Following the rig release it will be moved to Aransay #711 to drill for a direct hydrocarbon indicator seen in the seismic in the Triassic above a salt ridge. The total depth of this target is approximately 700 metres which the Company expects will be reached within approximately 15.

Commenting on the programme, Charles Summers, President and COO of Caspian said:

"Whilst we are disappointed in the results of well #703, it was good exploration target and needed to be drilled. However, as the other post salt wells are geologically independent of this well, we are confident that they still stand on their own merits".

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.

The information in this release has been reviewed by Kenneth Hopkins, AAPG, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Hopkins is Director of Exploration for Aral and a consultant for Caspian Energy Inc., is a certified professional geologist and has over 25 years experience in oil and gas exploration and production.

Contact Information

  • Bell Pottinger Corporate and Financial
    Ann-marie Wilkinson/Sarah Williams
    00 44 (0)20 7861 3232
    or
    Jefferies International Limited
    Jack Pryde
    00 44 (0)20 7029 8000