Caspian All Set to Plug Aransay #711

Caspian Energy Inc. announced that Aral Petroleum Capital LLP, in which the Company holds a 50% indirect interest, has logged the second well in its post-salt drilling program, Aransay #711.

On reaching a total depth of 924 meters the well has been determined to be a dry hole and is now being prepared for plugging.

Aransay #711

The well, Aransay #711, was designed to test sandstone reservoirs in the Triassic in a trap created by faulting associated with movement of one of the several Permian Kungurian salt ridges running through the North Block. On reaching its total depth of 924 meters in the Upper Permian, the well encountered approximately 298 meters of reservoir quality rocks in the Triassic section. The Triassic was interpreted to be sandstone reservoirs trapped against a fault and was supported by a series of flat-based seismic reflectors believed to indicate a hydrocarbon/water interface. However, no shows were encountered while drilling and electric logging has confirmed the absence of hydrocarbons.

Nevertheless, the presence of reservoir-quality sands of such thickness in the Triassic supports the interpretation that the Triassic is a viable primary target in the area in the presence of a proper trap and seal.

Aral has decided to release the drilling rig following plugging operations to further evaluate the portfolio of existing prospects identified in the block.

Commenting on the program, Charles Summers, President and COO of Caspian said, "In the last two wells, in the Triassic, we have drilled good quality reservoir rock, but have only seen residual hydrocarbons. We will now reassess the seismic interpretation for this area and then decide how best to proceed.

"Aral has completed its East Zhagabulak Reserves Report for the Kazakhstan government and is proceeding with application for a production license. In addition, 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 and the current strong oil prices have allowed us to drill within our cash flow."