CEK Caspian Energy

    RNS Number : 1326A
  Caspian Energy Inc
  29 July 2008
   

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


    29 JULY 2008

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

    Drilling Results of Well Aransay �711

    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 logged the second well in its post-salt drilling programme,
Aransay �711.  

    On reaching a total depth of 924 metres the well has been determined to be a dry hole and is now being prepared for plugging.

    Aransay �711
    The well, Aransay �711, was designed to test sandstone reservoirs in the Triassic in a trap created by faulting associated with movement
of one of the several Permian Kungurian salt ridges running through the North Block. On reaching its total depth of 924 metres in the Upper
Permian, the well encountered approximately 298 metres of reservoir quality rocks in the Triassic section. The Triassic was interpreted to
be sandstone reservoirs trapped against a fault and was supported by a series of flat-based seismic reflectors believed to indicate a
hydrocarbon/water interface. However, no shows were encountered while drilling and electric logging has confirmed the absence of
hydrocarbons. 

    Nevertheless, the presence of reservoir-quality sands of such thickness in the Triassic supports the interpretation that the Triassic is
a viable primary target in the area in the presence of a proper trap and seal.

    Aral has decided to release the drilling rig following plugging operations to further evaluate the portfolio of existing prospects
identified in the block.

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

    "In the last two wells, in the Triassic, we have drilled good quality reservoir rock, but have only seen residual hydrocarbons. We will
now reassess the seismic interpretation for this area and then decide how best to proceed. 

    Aral has completed its East Zhagabulak Reserves Report for the Kazakhstan government and is proceeding with application for a production
license. In addition, a contract has been signed and work is underway to complete the Technology Scheme for the development of the East
Zhagabulak Field. The field continues to produce at about 784 bopd and the current strong oil prices have allowed us to drill within our
cash flow". 


    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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