HOUSTON, Oct. 27, 2006 (PRIMEZONE) -- Transmeridian Exploration Incorporated (AMEX:TMY) today announced that the three most recent wells to reach total depth in its South Alibek field in western Kazakhstan, SA-13, SA-16 and SA-21, have been logged and cased and are ready for completion. Completion of the wells, including high-velocity acid stimulation, is still pending due to delayed arrival and mechanical failure of certain third-party service company equipment. The wells are now expected to be completed over the next two weeks.
Drilling Program
In addition to the three wells currently awaiting completion, four new wells are currently being drilled, a fifth well is being deepened and the company is preparing to commence a sixth new well. Upon completion of these nine wells, by early 2007, the company will have a total of 18 producing wells in the South Alibek field.
SA-K1, which was spudded on July 11, is currently drilling at a depth of approximately 10,100 feet, with a programmed total depth of 12,500 feet. The well program was changed to deepen the well from its original KT1 target in order to exploit attractive KT2 intervals indicated by other wells in this part of the field.
SA-K2 was spudded on October 7 with a programmed total depth of 9,800 feet. The well is planned as a single-interval vertical development well to be completed only in the shallower KT1 reservoir. The well is currently at a depth of approximately 5,500 feet.
SA-27, SA-31 and SA-35 were spudded on September 22, October 2, and October 7, respectively, each with a programmed total depth of 12,500 feet. SA-27, SA-31 and SA-35 are currently at depths of approximately 6,700, 5,500 and 4,500 feet, respectively. All three wells are development locations within the previously established proved area of the field.
Drilling equipment is currently being mobilized and rigged up in preparation for commencement of drilling operations on the SA-23 development well location. The well has a programmed total depth of 12,500 feet and is expected to spud in early November.
Central Production Facility and Pipeline Construction
Construction of the central production facility is progressing as scheduled, and the company anticipates commissioning phase one with 10,000 bopd capacity by the end of the year. Phase two, which will boost capacity to 30,000 bopd, is expected to be online during the second quarter of 2007. Work on the pipeline to connect the South Alibek field to the nearby KazTransOil pipeline is approaching completion. The 1.5 kilometer pipeline is currently being pressure-tested prior to installation of the pumping equipment, which has been fabricated and is being shipped to the field. The transfer and metering equipment is on schedule to arrive in late November and is expected to be installed and operational by the end of the year.
Third Quarter Conference Call
Transmeridian will host a conference call at 10:00 a.m. Central Standard Time on Wednesday, November 8, 2006 to discuss third quarter 2006 results, at which time management will provide an update on production, the drilling program and outlook for the remainder of 2006. Individuals who wish to participate in the conference call may do so by dialing 1-800-625-6164 in the United States or +1-706-645-0400 outside of the United States. The conference identification number is 9955515 and the conference leader will be Lorrie T. Olivier, President and Chief Executive Officer of Transmeridian. A replay of the conference call will be available by dialing in 1-800-642-1687 in the United States or +1-706-645-9291 outside of the United States, using identification number 9955515. The replay will be available through November 11, 2006.
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.
For more information please contact the following:
Lorrie T. Olivier, CEO
Earl W. McNiel, CFO
397 N. Sam Houston Pkwy E., Suite 300
Houston, Texas 77060
Phone: (281) 999-9091
Fax: (281) 999-9094
E-mail: tmei@tmei.com
Website: www.tmei.com
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.