RNS Number : 2921U
  Caspian Energy Inc
  13 May 2008
   

    13 May 2008

    CASPIAN ENERGY INC.
    ANNOUNCES FIRST QUARTER 2008 FINANCIAL RESULTS
    TORONTO, 13 May 2008 -- Caspian Energy Inc. (the "Company" or "CEK") (TSX and AIM:CEK) announced today its financial results for the
three months ending March 31, 2008. 
    Financial highlights:
    *     Cash from operations for the three months ended March 31, 2008 was $1,365,477 - $0.01 per share (Q1 2007 - $(356,150) - $(0.01)
per share) attributable to the increased oil and gas operations' net revenues.  
    *     Oil revenues before transportation costs for the three months ending 31 March 2008 were $3,436,781 (Q1 2007 - $357,997).
    *     Current working capital position of $4.7 million.
    *     For the three months ending 31 March 2008, Caspian's net income was $1,570,043 - $0.02 per share (Q1 2007 - Loss of $1,377,135 -
$0.01 per share)
    The Company's interim unaudited financial statements for the period and related management's discussion and analysis have been filed
with Canadian securities regulatory authorities and are available for viewing at www.sedar.com.
    Operational highlights:
    *     Increase in average production rate from 181 Bopd to 461 Bopd and in average price per barrel from $26.86 to $74.98, due to the
impact of international oil markets. An average 502 Bopd sold during the period (Q1 2007 - 146 Bopd).
    *     Baktygaryn ž703, first post-salt well identified from the Baktygaryn 3-D survey, spuded in mid-March 2008 with a target total
depth of approximately 2,500 metres.
-          Currently the well has been sidetracked and is drilling ahead in the salt section of the well.The sidetrack hole was the result
of a mechanical failure in the lower section of the drill string. The well is drilling at 1745 meters having passed the original hole on May
8th. The well is expected to reach total depth in the Upper Permian by the end of May.
    Outlook:
    *     A second well to be drilled to the eastern side of Baktygaryn, in the Aransay areas in the western part of the North Block
following the release of the rig from well ž703.
    *     Completion of interpretation work on the Baktygaryn 3-D and North Block regional 2-D seismic data expected by late May 2008.
    *     Drilling in Itisay, Kozdesay and West Kozdesay in the southwestern portion of the North Block expected to begin later in the
year.
    Rights Offering:
    *     On 17th April, Caspian announced it had filed for a rights offering, which if fully subscribed would raise $4,347,635. 
    *     Each shareholder would receive one rights for every share they owned on the record date of the 23rd April 2008. 
    *     Six Rights will entitle the holder thereof to purchase one unit (a "Unit") for a subscription price of $0.25 per Unit. 
    *     Each Unit comprises of one common share in the capital of Caspian (a "Share"), and one half of one Share purchase warrant (each
whole such Share purchase warrant a "Warrant") at an exercise price of $0.45 exercisable until the earlier of May 23, 2011, or 30 days
following the receipt of a notice from Caspian that the closing price of the Shares for any 20 consecutive trading days exceeded $0.75
    *     Full details of the Offering, including the process to be followed for the exercise of Rights can be found in the rights offering
circular filed under Caspian's profile on www.sedar.com.

    Commenting on the results, William Ramsay, Chairman and Chief Executive Officer of Caspian Energy, Inc. said: 
    "We are very pleased with the strong operational improvements on Q1 last year which are largely the result of the positive impact of the
international oil markets on Caspian's business. We are also excited about the prospects we have identified in the Baktygaryn area and the
new strategy that we are pursuing. We believe that our latest targets have the potential for highly significant recoverable reserves,
relative to those we have already and the strategy as a whole presents a more attractive risk profile for the Company."
    -ENDS-
    For further information, please contact:
    Caspian Energy Inc.
    William Ramsay
    President and Chief Executive Officer
    00 44 (0)20 7861 3232

    Bell Pottinger Corporate and Financial                
    Sarah Williams                
    00 44 (0)7904 932904

    Jefferies International Limited
    Jack Pryde / Oliver Griffiths
    00 44 (0)20 7029 8000


    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. 
     Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein
have not been registered under the U.S. Securities Act of 1933 and may not be offered or soled in the United States or to a U.S. person
absent registration or an applicable exemption from registration.
    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.
    To view the full text of this press release, click on the following link:

     http://www.rns-pdf.londonstockexchange.com/rns/2921U_1-2008-5-13.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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