CEK Caspian Energy

RNS Number:5857Q
Caspian Energy Inc
20 March 2008


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



20 MARCH 2008


                              CASPIAN ENERGY INC.

                          ("Caspian" or the "Company")

                 First Well Spud in Post-Salt Drilling Program


TSX: CEK

AIM: CEK


Caspian Energy Inc (the "Company"), 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 spudded the first
exploration well, Baktygaryn #703, in its post-salt drilling program.

Whilst post salt production is established in this part of the basin, only by
interpreting the 3D seismic acquired by the Company over the Baktygaryn area was
this target identified. The 3D and 2D seismic have also allowed the Company to
identify a number of other new prospects over the North Block.

Baktygaryn #703

The vertical well, Baktygaryn #703, is 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 Triassic is
interpreted to be a combination of sand truncation on top of the salt wing and
faulting created by salt movement. The Upper Permian is interpreted to be
trapped below the overhang of the salt wing.

Dask Drilling, a Kazakhstan company has been contracted to perform drilling
operations and, whilst the late arrival of the drilling contractor's equipment
has resulted in the well being spud later than originally envisaged, Baktygaryn
#703 will now be drilled to an estimated total depth of 2,500 meters. This depth
is expected to be reached in approximately 28 days.

Commenting on Baktygaryn #703, William Ramsay, CEO of Caspian said:

"Baktygaryn #703 is the first of a number of opportunities we have identified in
this area of the North Block. This well is particularly interesting because it
is a dual target and therefore offers the opportunity for both Triassic and
Upper Permian. Should we be successful in both targets, we believe we have the
potential for highly significant recoverable reserves, relative to those we have
already."

New Prospects

The relatively shallow post salt targets offer a completely new series of
opportunities for the Company. The 3D and 2D seismic data have enabled several
new prospects to be identified and the Company is now in the process of
selecting additional drilling locations.

Following the release of the rig from well #703 the Company intends to move
drilling efforts to the eastern side of Baktygaryn, West Kozdesay, and Aransay
areas in the western part of the North Block where it will drill for Triassic
and Upper Permian targets ranging from 700 to 1,400 meters. The Company is
awaiting the outcome of permitting constraints and current weather conditions
before it confirms the precise location of the second well

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

"Analogous production already exists in this region of the Pre-Caspian basin and
it has always been our intention to see whether similar opportunities exist for
the Company. This is our first chance to pursue this new strategy which we
believe offers a more attractive risk profile, and at a fraction of the deep
carbonate drilling costs."

Current Production Update

Wells #301 and 213 have continued to produce without interruption for a
considerable period now. The average daily production from these wells over the
past 3 months has been 608 BOPD and 329 BOPD respectively, a total of 937 BOPD.

The Company has benefited from the rise in international oil prices and this has
also been reflected in domestic prices allowing Caspian to enjoy enhanced
cashflow over the past 12 months.


For further information, please contact:

Bell Pottinger Corporate and Financial
Ann-marie Wilkinson/Sarah Williams                     00 44 (0)20 7861 3232



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.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
DRLBDGDXIDDGGIG

Caspian Energy (LSE:CEK)
Historical Stock Chart
From Jul 2024 to Aug 2024

Caspian Energy (LSE:CEK)
Historical Stock Chart
From Aug 2023 to Aug 2024