HOUSTON, Sept. 10, 2004 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) announced today the completion of drilling of the fifth well in the South Alibek Field, well SA-17. Results from preliminary evaluation of logging and drilling data indicate the existence of similar productive reservoirs to those currently on extended test production from existing wells in the Field. Testing is scheduled to begin immediately after running casing and the perforation of initial intervals.
Drilling Operations Update
Well SA-17 was drilled to a depth of 12,400 feet and encountered the main target reservoirs of the South Alibek Field within the KTII carbonates. The well penetrated all the major productive intervals targeted for this well, which are currently being tested in other wells in the field. The preliminary well log evaluation indicates approximately 210 net feet of reservoir in the KTII interval and 280 net feet of reservoir in the KT I interval. Current plans are to complete the sections in the KTII with similar reservoir pressures and later complete as a dual producer by adding additional sections with lower pressures.
The SA-17 is a development well and replaced Well No. 29, which was originally drilled in the Soviet era and abandoned by the Company due to downhole mechanical problems. The Company has now drilled 5 of the 16 identified proven locations within the field. The two drilling rigs the Company operates in the field are being moved to the SA-3 and SA-14 well sites. These wells will be drilled on the outer edges of the estimated proved area to demonstrate continuation of the Field to the west of existing wells and will be located approximately one mile from existing producing wells. Due to the necessity of keeping a rig on site for the initial testing of SA-17, we are planning that only one of these two wells will be finished by year end with the second well being completed early in 2005. Both wells are programmed for a total depth of about 12,500 feet.
The Company remains confident that this rhythm of adding additional wells, plus the recompletion program for the conversion of existing wells as dual producers, will yield field production rates of 4,000 to 5,000 barrels of oil per day by the end of the fourth quarter.
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. or 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" 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.