HOUSTON, March 23, 2004 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) announced today it has spud South Alibek 17 (SA-17) on March 20, the fifth well of an initial seven well drilling program in the South Alibek Field. This well is a twinning of well 29, which was plugged last year due to mechanical problems, but had been on production prior to this problem. SA-17 is a half mile south of SA-1. The well is currently drilling at a depth of 1,225 feet. The company currently has SA-1 on test production. SA-2 and SA-4 have recently been completed and the testing program has begun. SA-5, spud on March 5, set surface casing last week and is currently drilling at 3,800 feet. The program depth for the two new wells is currently planned for 13,780 feet with the same KTI and KTII carbonate targets as the previous wells drilled in the field.
A testing program in both SA-4 and SA-2 is under way by the Company's contractor Schlumberger. The program is expected to be more time consuming than in SA-1 because it is designed to evaluate reservoir extensions as well as production capacity of the individual intervals. In SA-4, 420 feet of wireline perforations have been made between 13,665 feet and 12,195 feet over a gross interval of 1,470 feet. In SA-2, 85 feet were initially perforated via wireline, and a remaining 367 feet of tubing conveyed perforations are planned to be made from 13,714 feet to 12,818 feet over a gross interval of 900 feet. Following recovery of invaded filtrates and clean up of the perforated intervals, the wells will be acid stimulated by Schlumberger. Both wells will then undergo an extended period of production testing as is being done with SA-1. Based upon the finalized logging data and results of this evaluation phase, additional intervals in the KT2 may be perforated. Further details on the results will be provided after a sufficient amount of work has been completed and information on the results is evaluated.
Plans are underway on SA-1 to dual complete the well in the KT2 reservoir section. Proposals are currently being reviewed and will be implemented once a workover rig is moved to the field for this work to commence. Estimates made from the extended production testing indicate that with a dual completion the well will be capable to produce at higher rates than at present, currently averaging around 1000 barrels oil per day.
About Transmeridian Exploration, Inc.
Transmeridian Exploration, Inc. (TMXN) is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. TMXN primarily targets medium-sized fields with proved or probable reserves and significant upside reserve potential. Its first major project is the South Alibek Field in Kazakhstan. As of December 31, 2002, the Company's proved reserves in the Field were 17.1 million barrels, with ultimate potential of the field estimated to be 378 million barrels of oil. Ryder Scott Company is currently updating reserve estimates for the field.
For more information please contact the following:
Transmeridian Exploration, Inc. or ROI Group Associates, Inc 397 N. Sam Houston Pkwy E. Suite 300 39 Broadway, Suite 2410 Houston, TX 77060 New York, NY 10006 Lorrie T. Olivier, CEO Robert Giordano Tel: (281) 999-9091 Tel: (212) 495-0200 x10 Fax: (281) 999-9094 Fax: (212) 495-0746 E-mail: tmei@tmei.com E-mail: rgiordano@roiny.com Website: www.tmei.com
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created therein. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2002. Although Transmeridian Exploration, Inc. believes the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion herein should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. TMEI discloses proved reserves that comply with the Securities and Exchange Commission's (SEC) definitions. Note that the Company's use of terms such as "ultimate potential" and "recoverable reserves" include quantities of oil that are not yet classified as proved and which the SEC guidelines do not allow us to include in filings with the SEC."