HOUSTON, Jan. 10, 2007 (PRIME NEWSWIRE) -- Transmeridian Exploration Incorporated (AMEX:TMY) today announced that its 25-year production contract for the South Alibek field has been signed and officially registered by the governmental authorities in Kazakhstan. The contract initially covers the approved 3,500 acre commercial area within the 14,000 acre South Alibek license area. All of the Company's 72.9 million barrels of proved net reserves identified in its December 31, 2005 reserve report, as well as approximately half of the additional 108.2 million barrels of probable net resources, are located within the 3,500 acre commercial area. Under the Company's exploration contract, which extends through April 2009, the Company has the right to continue exploration activities within the license area and increase the size of the commercial area subject to the long-term production contract.
"Finalization of our long-term production contract has been expected for some time," commented Lorrie T. Olivier, President and Chief Executive Officer. "Now that it has been received, we can continue to move forward with our full scale development plans to exploit the resources contained in the South Alibek license area."
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.