Caspian Energy Inc. issued an operational update for the three and six months ending June 30, 2008.
- Increase in average price per barrel from $33.81 in the same period last year to $112.27 due to the impact of international oil markets. The Company sold an average 328 Bopd during the three month period (Q2 2007 - 465 Bopd).
- While Aransay #711, the second well in the Company's post-salt drilling program, was determined to be a dry hole, the presence of reservoir-quality sands of such thickness in the Triassic confirmed that the area is a viable primary target in the presence of a proper trap and seal.
- 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, of which Caspian's share is 392 bopd.
- The Company has completed its East Zhagabulak Reserves Report for the Kazakhstan Government and is proceeding with its application for a production license.
- The drilling rig has now been released from Aransay #711 and Caspian intends to further evaluate the portfolio of existing prospects identified in the North Block before making further drilling decisions.
Commenting on the results, William Ramsay, Chairman and Chief Executive Officer of Caspian Energy, Inc. said, "Despite a couple of operational set backs this quarter, the continual production of the East Zhagabulak Field during times of strong oil prices and the impressive reception to our Rights Offering, has allowed us to end the quarter with a robust working capital position and mitigated our losses.
"We have confirmed that the Triassic area is a viable primary target and remain confident on the new strategy that we are pursuing which we believe presents a more attractive risk profile for the Company."