Caspian Energy Inc.

May 04, 2007 11:00 ET

Caspian Energy Inc.: Operations Progress Report

TORONTO, ONTARIO--(CCNMatthews - May 4, 2007) -


Caspian Energy Inc. (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 completed fishing operations and retrieved the lost wire line and logging tool from East Zhagabulak #301. The well was returned to production on 14 April 2007. After recovering most of the water used in the workover, the well has stabilized at 981 barrels of oil per day, 13 barrels of load water per day and 1,180 MCF of gas per day with a flowing tubing pressure of 617 psi on a 12 mm choke. The load water is expected to diminish over time.

East Zhagabulak #303, the third exploration well, is being swabbed to remove water and spent acid used in the well stimulation program. Nearly all of the load water and spent acid has been recovered with only a trace of oil. Preparations are being made to isolate the lower KT-2 perforations and then to test the upper intervals.

Charles Summers, President, Caspian Energy, Inc. commented: "We have successfully completed a difficult fishing operation on EZ #301. We are currently producing about 1,400 barrels of oil per day from wells 301 and 213. We are preparing to isolate some of the lower perforated intervals in well #303, which based on log analysis contain a higher water content than the shallower intervals and are believed to be contributing formation water during swabbing. After the lower intervals are isolated, the upper intervals, which are primarily in the KT-1, will be tested. We do not expect any further results from this well for about 45 to 60 days."


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 Edgar Folmar, SPE, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Folmar, Director of Operations for Aral and a consultant for Caspian Energy Inc., is a qualified petroleum engineer and has over 20 years experience in oil and gas exploration and production.

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