HOUSTON, July 13, 2004 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) today announced the opening of its operating office in Baku, Azerbaijan. The company has initiated due diligence studies aimed at securing a Production Sharing Agreement with the national oil company SOCAR for the exploration, rehabilitation and development of petroleum properties in Azerbaijan.
"This is our first major step in diversifying our investment portfolio and if successful will add substantially to our reserve resource potential," commented the Chairman and CEO Lorrie T. Olivier.
Azerbaijan is a key petroleum producer in the region with an estimated 6.6 billion barrels of remaining reserves, second only to Kazakhstan in the Caspian Region. The country has a long history in its petroleum industry development and is one of the key countries in the region for not only its oil and gas production but for its infrastructure development with several major export pipelines. The Northern Export Route (NER) Pipeline, with 50,000 barrel per day capacity, and the Western Export Route (WER) Pipeline, with a 140,000 barrel per day capacity take crude oil to the Black Sea ports for export to western markets. The Baku-Tbilisi-Ceyhan (BTC) Pipeline is planned for a capacity of 1.2 million barrel per day and will provide a direct route for Caspian region oil to Mediterranean export markets. The pipeline is scheduled for completion and operation in 2005 with an initial capacity of 500,000 barrels per day and should relieve much of the congestion in exports through the Bosporus Straits in the Black Sea.
"The company will be targeting projects that have existing proved reserves with potential for expansion as well as those with low risk upside opportunities. This upside potential could be within the same reservoirs as existing production or underlying the existing proved reserves. Current targets for acquisition have the potential to substantially increase the company's reserve base and production capabilities," added Bruce Falkenstein VP Exploration. The company will be reorganizing and adding to its operating staff to accommodate this expansion of operations. Funding for the current level of operations will be met from existing working capital. Development and exploration capital required for project are expected to be funded through the equity and or debt instruments supported by the size of the fields acquired.
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 and it is currently pursuing additional projects in Azerbaijan.
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.