HOUSTON, May 24, 2004 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) today announced operational update.
Operations Update
In the first quarter of 2004, the Company continued with its infield drilling operations with two new wells, the SA-5 and the SA-17. These two wells are being drilled on locations that currently have proved undeveloped reserves. As of May 22, 2004, the SA-5 well was at a depth of approximately 8,750 feet drilling within the KT-1 carbonates and the SA-17 well was at approximately 6,600 feet drilling the lower Permian sediments. Both wells are planned to be drilled to a total depth of approximately 13,800 feet and are targeted to encounter the same zones as the SA-2 and SA-4.
We have received initial tests of oil from approximately 90 feet of the KT-2 interval in the SA-2 well, of approximately 270 feet planned to be perforated. The preliminary indications from these tests have met our expectations, but the well has not stabilized to report an accurate initial flow rate. Both SA-2 and SA-4 had previously been partially perforated with no significant flow rates from the initial perforations. Additional perforations are in progress on the SA-4 and the completion work may be redesigned to properly induce the lower intervals to flow as has been done in SA-2. Once the lower intervals are flowing, we intend to make additional perforations to intervals which are currently productive in the SA-1.
This completion program, while very time consuming, should give the Company the technical reservoir information to support expansion of the drilling program and data to support estimates of future delivery rates.
The construction of our permanent production facility has been continuing. The tanks and pressure vessels have been pressure tested and certified for operation. We are currently storing oil in one of the tanks. The field loading facilities are approximately 85% complete. We expect the facility to become operational during the second quarter of 2004. We are reviewing the feasibility of using chemical additives to remove mercaptanes until we resolve technical issues of constructing a demercaptane unit, which would, if successful, allow us to realize higher sales price for our production.
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.
For more information please contact the following: Transmeridian Exploration, Inc. 397 N. Sam Houston Pkwy E., Suite 300 Houston, Texas 77060 Lorrie T. Olivier, CEO Phone: (281) 999-9091 Fax: (281) 999-9094 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, 2003. 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 "probable oil resources," "probable reserves," "possible oil resources," "ultimate potential," "resources" and "recoverable reserves" include quantities of oil that are not yet classified as proved and which SEC guidelines do not allow us to include in filings with the SEC.