Caspian Energy Inc.
TSX : CEK
AIM : CEK

June 11, 2008 02:00 ET

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

LONDON, UNITED KINGDOM--(Marketwire - June 11, 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 now reached a depth of 2,430 meters in its first exploration well, Baktygaryn #703, in its post-salt drilling program.

Baktygaryn #703

The well 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 location of the vertical wellbore was chosen to primarily target the Upper Permian and even though the well encountered reservoir quality sandstones in the Triassic, according to mudlogs, it intersected the potential Triassic reservoirs in a downdip position apparently falling below any entrapment of hydrocarbons. The Upper Permian target was interpreted to be sandstones trapped below the overhang of a salt wing, based on the presence of strong seismic reflectors just below the salt. However, upon reaching the interpreted depth of these seismic anomalies, no reservoir quality rocks have been found to be present.

The well is continuing to a TD of 2,500m and will be prepared for electric logging before making a final decision on disposition of the well. The Company will make a further announcement in due course.

New Prospects

The Company remains highly confident on its remaining post-salt prospects and their prospectivity is not affected by the results of Baktygaryn #703. 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. 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. Depth to the target is approximately 700 meters and is expected to take around 15 days to reach TD.

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