HOUSTON, Oct. 10, 2006 (PRIMEZONE) -- Transmeridian Exploration Incorporated (AMEX:TMY) today announced that it has received a two-year extension of its exploration contract for the South Alibek Field in Kazakhstan. The contract, which would have expired in April 2007, has now been extended to April 29, 2009. As a result of the extension, the Company will have two additional years to conduct exploration activities within its 14,000 acre South Alibek license area and increase the 3,500 acres currently approved as the commercial area for the South Alibek Field. The minimum work program under the extension is approximately $28 million, which includes the drilling of four additional wells.
"This extension is an important step in our continuing exploration and development of the South Alibek Field," commented Lorrie T. Olivier, President and Chief Executive Officer. "We now have until April 29, 2009 to add reserves to the approved commercial area, which could significantly increase the overall net present value of the Field to the Company. The program to drill exploratory wells will be integrated with the previously announced expansion of our development drilling program, which is currently utilizing five drilling rigs."
About Transmeridian Exploration Incorporated
Transmeridian Exploration Incorporated is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. The company primarily targets fields with proved or probable reserves and significant upside reserve potential. Transmeridian Exploration currently has projects in Kazakhstan and southern Russia and is pursuing additional projects in the Caspian Sea region.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities 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 Transmeridian Exploration Incorporated's Annual Report on Form 10-K for the year ended December 31, 2005, as amended, and other filings with the Securities and Exchange Commission (SEC). Although the Company 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. The Company discloses proved reserves in its annual filings that comply with SEC definitions. The use of the terms "reserves" or "resources" in this press release may include quantities of oil that are not yet classified as proved according to SEC definitions and which SEC guidelines may not allow us to include in filings with the SEC.