Caspian Keeps Going at Well in Post-Salt Drilling Program

Caspian Energy Inc announced that Aral Petroleum Capital LLP, in which the Company holds a 50% indirect interest, has now reached a depth of 2,430 meters in its first exploration well, Baktygaryn #703, in its post-salt drilling program.

The Baktygaryn #703 well was designed to test sandstone reservoirs in both the Triassic and Upper Permian in traps created by one of the several Permian Kungurian salt ridges running through the North Block. The location of the vertical wellbore was chosen to primarily target the Upper Permian and even though the well encountered reservoir quality sandstones in the Triassic, according to mudlogs, it intersected the potential Triassic reservoirs in a downdip position apparently falling below any entrapment of hydrocarbons. The Upper Permian target was interpreted to be sandstones trapped below the overhang of a salt wing, based on the presence of strong seismic reflectors just below the salt. However, upon reaching the interpreted depth of these seismic anomalies, no reservoir quality rocks have been found to be present.

The well is continuing to a TD of 2,500m and will be prepared for electric logging before making a final decision on disposition of the well. The Company will make a further announcement in due course.

The Company remains highly confident on its remaining post-salt prospects and their prospectivity is not affected by the results of Baktygaryn #703. Baktygaryn #703 was the only prospect associated with what was interpreted as a salt overhang and was also the deepest well on the prospect list. Following the rig release it will be moved to Aransay #711 to drill for a direct hydrocarbon indicator seen in the seismic in the Triassic above a salt ridge. Depth to the target is approximately 700 meters and is expected to take around 15 days to reach TD.