RNS Number : 1165X
  Caspian Energy Inc
  19 June 2008
   

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


    19 JUNE 2008

    CASPIAN ENERGY INC.
    ("Caspian" or the "Company")

    Final Results of First Well 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 reached a total depth of 2,521 metres and logged its first
exploration well, Baktygaryn �703, in its post-salt drilling program. The well has been determined to be a dry hole and is being prepared
for plugging.

    Baktygaryn �703
    The vertical well, Baktygaryn �703, 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 well reached a total depth of 2,521 metres in the
Permian salt without encountering reservoir quality rocks in the Permian section. 

    Based on the presence of strong seismic reflectors, the Upper Permian target had been interpreted to be potential sandstone reservoirs
trapped below the overhang of a salt wing. However, upon reaching the interpreted depth of these seismic anomalies, the well instead
encountered alternating layers of claystones and anhydrites. 

    Whilst electric logging has confirmed the absence of reservoir sands, it has also revealed the presence of high quality Triassic sands
with porosities averaging 22% over 169 metres (net) of sandstone. The location of the vertical wellbore, however, was chosen to primarily
target the Upper Permian seismic anomalies and even though the well encountered reservoir quality sandstones in the Triassic it intersected
the reservoirs in a down dip position. The presence of these reservoir-quality sands in the Triassic supports the interpretation that the
Triassic is a viable primary target in the area.

    New Prospects
    The Company remains confident on the remaining targets in its post-salt drilling program. As 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, the prospectivity of the
remaining targets is not affected by the results of Baktygaryn �703. 

    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. The total depth of this target is approximately 700 metres which the Company expects will be reached within
approximately 15 days.


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

    "Whilst we are disappointed in the results of well �703, it was good exploration target and needed to be drilled. However, as the other
post salt wells are geologically independent of this well, we are confident that they still stand on their own merits".



    For further information, please contact:

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

    Jefferies International Limited
    Jack Pryde                            
    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. 


    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 
 
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