HOUSTON, July 23, 2004 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) today announced the two year extension to the Exploration Contract on its License 1557 for the South Alibek Field in Kazakhstan.
"This extension was essential to obtain prior to our application for a Development Contract on the South Alibek Field," commented Bruce Falkenstein, VP Exploration. "We have a license of more than 14,000 acres and have proved reserves covering less than 2,000 acres of the total available area. There still remains more than 12,000 acres which are highly prospective but mostly undrilled. Most of this area has been estimated by Ryder Scott Company to contain significant potential reserves. Rather than relinquish most of this acreage next year, it was key for us to secure this extension of the exploration rights to allow us to continue the drilling and delineation in the unproven area of the license," added Mr. Falkenstein.
The existing exploration period was set to expire in April 2005 and is now extended for an additional two years until April 2007. A work program of $30.5 million has been detailed which consist of $21 million for drilling and completing 5 wells and $9.5 million for facilities enhancements, pipeline and transfer station, seismic, geological and field development studies and other field infrastructure.
The company expects to finance its share of these costs with cash flows from the main South Alibek Field over the next two years.
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.
For more information please contact the following:
Transmeridian Exploration, Inc. ROI Investor Relations, LLC 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 x15 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, 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"," potential reserves" 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.