Operations Progress Report

RNS Number:7341Z
Caspian Energy Inc
05 July 2007


                               CASPIAN ENERGY INC.

                          ("Caspian" or the "Company")

                            Operations Progress Report


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, has completed the swabbing operation on well
Zhagabulak #303 and that the KT-1 tested only formation water with no
hydrocarbons. The well will be suspended pending further evaluation.


The Company is evaluating bids for its planned drilling campaign in the western
side of the block. Drilling operations are expected to start in the third
quarter and will focus on Baktygaryn, Itisay, and Kozdesay areas in the post
salt deposits.


Charles Summers, President, Caspian Energy, Inc. commented:


"Even though well 303 is 225 meters updip from our producing well 301, it has
tested only water. We will return our focus to the northern side of the
Zhagabulak Area where there are proven reserves, and the western side of the
block to pursue shallower, less expensive targets."


For further information, please contact:


Bell Pottinger Corporate & Financial

Ann-marie Wilkinson/Algy Rowe 00 44 (0) 20 7861 3232


Jefferies International Ltd

Toby Hayward 00 44 (0) 20 7618 3500



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 Edgar Folmar, SPE, who is a
qualified person for the purposes of the AIM Guidance Note for Mining, Oil and
Gas Companies. Mr. Folmar, Director of Operations for Aral and a consultant for
Caspian Energy Inc., is a qualified petroleum engineer and has over 20 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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