Caspian Spuds Follow-Up Well

CALGARY, ALBERTA--(Marketwire - May 24, 2012) -

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Subsequent to previous development success, Caspian Energy Inc. (TSX:CEK) ("Caspian") and partners have initiated drilling of a fifth well, well #306, in the East Zhagabulak field of west-central Kazakhstan. The contract for production of hydrocarbons at the East Zhagabulak field in the Aktobe Oblast is valid for a 24 year period up to 2034.

Well #315 was spud on May 9, 2012 with a target depth of 4,700m. This well is approximately 700m north-east of the producing well, EZ #301 and 600m south-east of well EZ #308, which is presently being tested. Well #315 is currently drilled to a depth 680m and the setting of the surface casing has been completed.

Caspian Chairman and CEO William Ramsay commented, "We now have two deep rigs drilling two additional wells in the East Zhagabulak field. In addition, we have two service rigs performing testing of completed wells. The initial results from the testing of the well #308, in the East Zhagabulak field, are expected in the near future. We expect to be able to update shareholders with plenty of news this year. As such, the spudding of well #306 represents the latest drilling activity, which will see the rigs constantly in operation throughout the year".

East Zhagabulak Update

Well #306, which was spudded in January is currently drilled to depth of 3,878 m. The KT-I horizon has been penetrated. The anticipated depth of this well is 4,700 m.

Following the granting of the flaring permit, production from wells 213 and 301 resumed on 3^rd May, 2012. Aggregate daily production from these two wells is slightly less than 500 bopd.

Well 308 is currently being tested. The interval from 4,668m up to 4,500m, in the KT-II has been perforated and acid treatment of the four sub-intervals has been completed. The results of the testing of this well will be forthcoming in the very near future.

To view the map associated with this press release, "East Zhagabulak Field," please visit the following link: http://media3.marketwire.com/docs/CEK2405_figure1.pdf.

West Zhagabulak Update

Well #316, is located approximately 10km west of the East Zhagabulak field and is sited on the West Zhagabulak structure. Success at well #316 will represent a new discovery for the Company. The testing of well #316 is underway and the initial results will be forthcoming in the near future.

To view the map associated with this press release, "Zhagabulak Area," please visit the following link: http://media3.marketwire.com/docs/CEK2405_figure2.pdf.

The Company has opened a tender for the re-testing of wells #302 and #303. Well #302 was drilled and completed in 2006, it is situated halfway between the East Zhagabulak field and the West Zhagabulak structure. Well #303 was drilled and completed later the same year, 2006. It is situated at the most southern end of the West Zhagabulak structure. Management believes that the logs from these two wells indicate that both wells should flow oil and therefore justify their being re-tested. Approval to test these wells has already been granted by the local authorities and the subsequent filing of the application with the Ministry in Astana has been made. It is intended that well #302 and #303 will be tested concurrently and therefore two additional small rigs should be mobilized and brought onto their locations in mid July.

William Ramsay commented further, "Success at either of these wells will have enormous implications for defining the areal extent of the oil-bearing structure of West Zhagabulak. Once again, the pace of activity in the field reflects the strategic benefit of our new partner, Asia Sixth Energy. This new partnership has resulted in the availability of finance, technical skills, and the procurement of equipment to enable us to resume an aggressive exploration program. Once this tender is awarded, we will be employing throughout the license a total of six rigs: two large rigs drilling two deep wells; and four smaller rigs performing testing operations."

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.