Successful Rights Offering

    RNS Number : 2806V
  Caspian Energy Inc
  27 May 2008
   

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


    27 May 2008



    CASPIAN ENERGY INC.
    ("Caspian" or the "Company")
    TSX: CEK
    AIM: CEK

    Caspian Announces Successful Rights Offering

    Caspian Energy Inc. ("Caspian") is pleased to announce the successful completion of its rights offering (the "Offering"), announced on
April 17, 2008.  

    The Offering was significantly oversubscribed and raised the maximum gross proceeds of $4,347,635 through subscriptions for 17,390,543
units at a price of $0.25 per unit. Each unit comprises one common share in Caspian (a "Share") and one half of one share purchase warrant
(each whole share purchase warrant, a "Warrant").  Each Warrant is exercisable at an exercise price of $0.45 until the earlier of 23 May
2011 or 30 days following the receipt of a notice from Caspian that the closing price of the Shares for any 20 consecutive trading days
exceeded $0.75.

    The net proceeds of the Offering will be used for the development of Caspian's oil and gas projects in Kazakhstan and for general
corporate purposes. 

    Caspian engaged Jones, Gable & Company Limited as managing dealer for the rights offering. 

    William Ramsay, Chairman and Chief Executive Officer, Caspian Energy, Inc. commented:

    "I am very pleased that by far the majority of existing shareholders chose to take up their rights in the offering. The proceeds from
the offering, supplemented by the cash from our existing production, give us adequate working capital to ensure our shallow well programme
can be executed in full."

    For further information, please contact:

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

    Jefferies International Limited
    Jack Pryde                                                       00 44 (0)20 7029 8000


    CAUTIONARY NOTE

    Certain statements contained in this press release are forward looking statements, including estimates, assumptions and other
forward-looking information. The actual performance, developments and/or results of Caspian 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 Caspian, 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 Caspian's filings with Canadian securities regulatory authorities. Caspian 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.

    Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein
have not been registered under the U.S. Securities Act of 1933 and may not be offered or soled in the United States or to a U.S. person
absent registration or an applicable exemption from registration.  



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