HOUSTON, Feb. 2, 2005 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) today announced that the State Committee of Reserves (SCR) of the Republic of Kazakhstan has approved commercial reserves for development and exploitation of the South Alibek Field. This approval provides the Company with the basis to finalize the terms of a Production Contract relating to this portion of the field with the Ministry of Energy and Mineral Resources. The Company expects the production contract, which is subject to customary reviews by various governmental committees, to be completed within approximately three months. The Government has assessed a commercial bonus of $1.2 million based on the SCR reserves audit as provided under the country's Petroleum Code.
The reserve audit covered by the SCR approval defines an initial production area of about 3,500 acres, about 25% of the total area under license. This area can be extended based on the drilling of additional exploration wells pursuant to the Company's current Exploration Contract, which was recently extended for another 2 years until 2007.
"We are especially pleased that the SCR has concurred with our findings in defining such a large commercial area in this initial study of the field," commented Bruce Falkenstein, V.P. Exploration. "Even though our level of proved reserves is not affected by this study, the production area delineated by the SCR is more than twice the area previously used in our reserve studies. This study supports our aggressive approach to expand exploration drilling within our 14,111 acre License."
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.