Caspian Energy Logs Pay with East Zhagabulak #303 Well

Caspian Energy

Caspian Energy reports that Aral Petroleum has completed an intermediate logging run over its primary targets, the KT 1 and KT 2, in its third exploration well. Aral is currently preparing to deepen the well to a Devonian target, by approximately an additional 700 meters (2300 feet). The Zhagabulak Area is located in the southeast corner of the North Block.

East Zhagabulak #303 has reached an intermediate depth of 4909 meters (16,105 feet) and was logged prior to drilling the Devonian section. According to the preliminary log results, the well has encountered about 80 meters (262 feet) of net pay in the Middle Carboniferous. The Company plans to set production casing over the Carboniferous after drilling and evaluating the Devonian target. If the Devonian is prospective, then the production casing will be run to total depth. The well will be tested in the fourth quarter following acid stimulation.

After further evaluation of the logs and stimulation report on East Zhagabulak #302, the KT 2 will be re-acidized and tested in the fourth quarter.

Aral has completed upgrades to its production plant to improve the plant's throughput capacity, efficiency, and safety.

"This well adds to the success of our first exploration well, EZ #301, and confirms our exploration strategy of pursuing the southwest trend. EZ #303 is 10 km southwest of our first producing well, EZ #213," said Charles Summers, Caspian Energy Inc. Chief Operations Officer. "Our fourth exploration location, EZ #304, approximately 7.3 km. northwest of 303, has been staked and will be spudded after the drilling rig is released from well 303, approximately the end of November."

Caspian Energy is an oil and gas exploration company operating in Kazakhstan and holds a 50% indirect interest in Aral Petroleum Capital LLP.