Caspian Energy Spuds East Zhagabulak #302

Caspian Energy says its affiliate, Aral Petroleum Capital LLP, in which the Company holds a 50% indirect interest, spudded its second exploration well, East Zhagabulak #302. The well is programmed for a total depth of 4900 meters (16,076 feet) and has set surface casing at 632 meters (2,073 feet). The well is approximately 3.6 km. southwest of the Company's first exploration well EZ#301.

East Zhagabulak #301 reached a total depth of 4846 meters (15,899 feet) and encountered approximately 101 meters (331 feet) of net pay in Middle Carboniferous reservoirs. The well is currently flowing to the Central Production Unit and will be acidized, prior to testing being completed. The Company will announce the results of the testing as soon as a stable flow rate has been achieved. The Company expects testing to be completed prior to the end of January, depending upon the availability of equipment and the winter weather.

The logging program for well EZ #301 has shown that the well is 38 meters updip to the offset producing well (EZ 213) and that productive intervals were bypassed in the earlier wells, which were drilled during the Soviet era.

"We are continuing to test EZ #301 and are encouraged by the initial results." said Charles Summers, Caspian Energy Inc. chief operating officer, "and we are planning an acid job to clean up the perforations and any near well bore damage to bring the well up to its potential."