Drilling Report

RNS Number:2839M
Caspian Energy Inc
22 January 2008


NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR INTO THE
UNITED STATES, AUSTRALIA OR JAPAN

22 JANUARY 2008


                              CASPIAN ENERGY INC.

                          ("Caspian" or the "Company")

                 First Well Spud in Post-Salt Drilling Program


TSX: CEK
AIM: CEK


Caspian Energy Inc., an oil and gas exploration company operating in Kazakhstan,
today announces that Aral Petroleum Capital LLP ("Aral"), in which the Company
holds a 50% indirect interest, will spud the first exploration well, Baktygaryn
#703, in its post-salt drilling program in mid-February.

Post salt production is established in this part of the basin. Existing post
salt production occurs within the North Block, but the fields are owned by other
companies. The relatively shallow post salt targets offer a completely new
series of opportunities for the Company. Only by acquiring and interpreting the
new 3D and 2D seismic over this area have these targets been identified.

Baktygaryn #703 and #701

The vertical well, Baktygaryn #703 is 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 well is
expected to reach total depth of 2,500 metres in approximately 28 days.

Following release of the rig from well #703 it will move to a location on the
eastern side of the salt ridge. This location, Baktygaryn #701, will be drilled
to an estimated depth of 800 metres to test an area of seismic anomalies that
terminate against a series of faults related to salt withdrawal. Well #701 is
expected to reach total depth in approximately 15 days.

Both the #701 and #703 locations were identified from the interpretation of the
Company's 3D seismic data acquired in the Baktygaryn area. Dask Drilling, a
Kazakhstan company, has been contracted to perform the drilling operations.

Other Prospects

From the 2D seismic data, several prospects have been confirmed or newly
identified and from this work additional drilling locations are being chosen.
Following the release of the rig from well #701, the Company is making plans for
drilling efforts to move to the Itisay, West Kozdesay, and Aransay areas in the
western part of the North Block to drill for Triassic and Upper Permian targets
ranging from 800 to 1400 meters. Large salt ridges running through these areas
have created multiple opportunities for traps against the salt and represent a
completely new series of prospects for the Company.

Charles Summers, President and COO of Caspian Energy, Inc. commented:

"This program offers a variety of targets, the successful drilling of which will
add meaningful reserves. Once begun, the program provides for a series of quick
to drill wells, which are relatively inexpensive, Therefore, the Company expects
to make a series of important announcements over the coming several months."


For further information, please contact:

Bell Pottinger Corporate & Financial
Ann-marie Wilkinson/Sarah Williams 00 44 (0) 20 7861 3232

Jefferies International Ltd
Toby Hayward/Oliver Griffiths 00 44 (0) 20 7029 8000


Background Information

The nearest known post-salt production is from the Kenkiyak field which is
located within the boundaries of the North Block but is not part of the North
Block contract. The 1995 State Balance report indicated there was approximately
eight production horizons in the shallow Cretaceous, Jurassic and Triassic
formations, and five production horizons in the Upper Permian. Independent
research consultant, Wood Mackenzie has reported recoverable reserves in the
post-salt section of Kenkiyak field at 126 million barrels of oil and 89 billion
cubic feet of gas with a current field daily production rate of 15,000 barrels.

Also located within the boundaries of the North Block but not part of the North
Block contract are the Kokzhide and Kumsay oil fields. The 1995 State Balance
report assigned oil reserves to the Jurassic and Triassic formations of the
Kokzhide field and indicated there was one Jurassic producing horizon in the
Kumsay field. Reported oil reserves are 13.8 million barrels for the Kokzhide
field and 39 million barrels for the Kumsay field.

The Saigak field, operated by Maersk Oil Kazakhstan, currently produces from
Triassic and Upper Permian at rates of approximately 4,200 barrels per day. Wood
Mackenzie assigned initial reserves of approximately 20 million barrels. This
field is located approximately 35 kilometres to the north-west of the North
Block's western boundary.



CAUTIONARY NOTE

Some of the statements and information contained in this news release may
include certain estimates, assumptions and other forward-looking information.
The actual performance, developments and/or results of the Company may differ
materially from any or all of the forward-looking statements, which include
current expectations, estimates and projections, in all or in part attributable
to general economic conditions, and other risks, uncertainties and circumstances
partly or totally outside the control of the Company, including oil prices,
imprecision of reserve estimates, drilling risks, future production of gas and
oil, rates of inflation, changes in future costs and expenses related to the
activities involving the exploration, development, production and transportation
of oil, hedging, financing availability and other risks related to financial
activities, and environmental and geopolitical risks. Further information which
may cause results to differ materially from those projected in the
forward-looking statements is contained in the Company's filings with Canadian
securities regulatory authorities. The Company disclaims any intention or
obligation to update or revise forward-looking information, whether as a result
of new information, future events or otherwise, except in accordance with
applicable securities laws.

The information in this release has been reviewed by Kenneth Hopkins, AAPG, who
is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil
and Gas Companies. Mr. Hopkins is Director of Exploration for Aral and a
consultant for Caspian Energy Inc., is a qualified geologist and has over 25
years experience in oil and gas exploration and production.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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