HOUSTON, March 17, 2005 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) reported a net loss of $4.0 million, or $0.05 per share, on revenues of $3.9 million for the year ended December 31, 2004, as compared to a net loss of $5.7 million, or $0.09 per share, on $0.8 million revenues for the year ended December 31, 2003.
For the year, Transmeridian produced 313,305 barrels of crude oil, or an average of 858 barrels per day, as compared to 117,376 barrels, or an average of 641 barrels per day, for the year ended December 31, 2003. The Company sold 336,440 barrels of oil at an average price of $11.87 per barrel during 2004, as compared to 77,293 barrels at an average price of $10.52 per barrel during 2003.
Transmeridian also announced an increase in estimated proved reserves in its South Alibek Field in Kazakhstan. The estimated gross proved reserves at year-end 2004 for the field totaled 68.9 million barrels of oil (MMbls), a 29% increase over year-end 2003. The Company's net share of estimated proved reserves is 26.8 MMbls, up from 20.7 MMbls at year-end 2003, after adjustment for the sale of 50% of the field earlier in the year. The pre-tax net present value of proved reserves, discounted at 10%, utilizing the net sales price the Company was receiving at year-end of approximately $20.00 per barrel, and as calculated in accordance with SEC guidelines, is approximately $220 million. The reserve estimates are based on five wells drilled and completed in 2003 and 2004 and one previously producing well drilled prior to the Company's acquisition of the field. With the completion of SA-14, the Company has now drilled six of 21 development locations within the estimated 1,680 acre proved area.
The Company's oil and gas reserve report was prepared by Ryder Scott Company, one of the world's leading independent reservoir engineering firms. The Company also engaged Ryder Scott to update its estimates of probable oil resources, which have increased 12% to 143.5 MMbls from the previous estimate of 128.1 MMbls made in early 2004. The field is in the early stages of development, with significant future drilling planned.
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," "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.
Transmeridian Exploration, Inc.
Selected Financial and Operating Data
Year Ended December 31,
2004 2003
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OPERATING RESULTS:
Revenue $ 3,922,990 $ 797,411
Operating loss (3,305,249) (4,915,029)
Net loss attributable
to common stockholders (4,002,291) (5,706,304)
Basic and diluted
loss per share (0.05) (0.09)
Weighted average
common shares outstanding 78,615,433 64,573,627
OPERATING DATA:
Production - barrels
of oil 313,305 117,376
Average price per
barrel sold $ 11.87 $ 10.52
BALANCE SHEET DATA:
Current assets $ 20,659,343 $ 2,067,804
Property and equipment, net 78,934,806 54,560,575
Total assets 99,810,260 57,099,072
Current liabilities 25,671,276 31,918,658
Long-term liabilities 23,868,999 24,674,196
Minority interest 7,924,558 --
Stockholders' equity 42,345,427 506,218