HOUSTON, June 14, 2004 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) announced today that its subsidiary Caspi Neft TME has executed transportation agreements that allow for the use of the national crude oil pipeline and terminal system for the South Alibek production. "This is the first step in allowing the company to complete its plan for a pipeline connection to the existing KazTransOil terminal located about 1.5 kilometers from the South Alibek Central Production Facility," commented Lorrie T. Olivier, the company's Chairman and CEO.
Current design is to install a pipeline transfer and measuring system to handle up to 30,000 barrels of oil per day for phase one of the project. A further technical agreement for operations with the Western Division of KazTransOil would be required once all the technical aspects and the connection to the terminal are finalized. Suppliers have given a 6-month delivery time table for the required pumping and metering instrumentation required by the KazTransOil technical specifications. The Company expects to be able to begin construction of the pipeline tie-in this year along with treating facilities that will allow for pipeline deliveries by 2nd Quarter 05.
The Company has an agreement in principal with a local crude marketing firm which will allow for North Sea Brent based pricing and rail export until the pipeline connection can be realized. This will entail trucking the crude to a local rail terminal about 35 miles from the field where it will then be railed to either Western European refineries or the Black Sea export terminals. The pricing will be based on a dated North Sea Brent quote less a transportation and quality adjustment in a range of $13-$14 per barrel. "While this mode of export is not ideal this would increase the net back per barrel significantly if prices remain in the $30 range," explained Mr. Olivier. Local truck sales continue to increase with higher local prices. The company is now making field deliveries with a net back of $13.33 per barrel.
About Transmeridian Exploration, Inc.
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. or ROI Group Associates, Inc 397 N. Sam Houston Pkwy E. Suite 300 39 Broadway, Suite 2410 Houston, TX 77060 New York, NY 10006 Lorrie T. Olivier, CEO Robert Giordano Tel: (281) 999-9091 Tel: (212) 495-0200 x10 Fax: (281) 999-9094 Fax: (212) 495-0746 E-mail: tmei@tmei.com E-mail: rgiordano@roiny.com 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, 2002. 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 "ultimate potential" and "recoverable reserves" include quantities of oil that are not yet classified as proved and which the SEC guidelines do not allow us to include in filings with the SEC."