Aral Puts East Zhagabulak Back on Production

Caspian Energy Inc. said that Aral Petroleum Capital LLP, in which it holds a 50% indirect interest, has completed fishing operations and retrieved the lost wire line and logging tool from East Zhagabulak #301 in Kazakhstan.

The well was returned to production on 14 April 2007. After recovering most of the water used in the workover, the well has stabilized at 981 barrels of oil per day, 13 barrels of load water per day and 1,180 MCF of gas per day with a flowing tubing pressure of 617 psi on a 12 mm choke. The load water is expected to diminish over time.

East Zhagabulak #303, the third exploration well, is being swabbed to remove water and spent acid used in the well stimulation program. Nearly all of the load water and spent acid has been recovered with only a trace of oil. Preparations are being made to isolate the lower KT-2 perforations and then to test the upper intervals.

Charles Summers, President, Caspian Energy, Inc. commented: "We have successfully completed a difficult fishing operation on EZ #301. We are currently producing about 1,400 barrels of oil per day from wells 301 and 213. We are preparing to isolate some of the lower perforated intervals in well #303, which based on log analysis contain a higher water content than the shallower intervals and are believed to be contributing formation water during swabbing. After the lower intervals are isolated, the upper intervals, which are primarily in the KT-1, will be tested. We do not expect any further results from this well for about 45 to 60 days."