HOUSTON, Oct. 6, 2005 (PRIMEZONE) -- Transmeridian Exploration, Inc. (AMEX:TMY) today announced first production from its seventh well, SA-3, in the South Alibek Field. This recently completed well flowed at an initial rate of 1,300 barrels of fluid per day from an 11 mm choke after perforation and acidizing of about 158 feet of the KT2 Formation. The well is currently cleaning up and the flow rate is expected to stabilize to between 800-1,000 barrels of oil per day (bopd) on this choke setting. The SA-3 is approximately 2,200 feet southwest of SA-17 and is in a similar flank location in the field as SA-14, with log estimated net oil pays in both the KT1 and KT2 comparable to that of the other wells in the field.
Five of the seven wells in the field are either scheduled for, or undergoing, workovers at the present time; however, progress has been slower than expected due to delays in availability and delivery of necessary equipment. Production from the field averaged approximately 1,000 bopd during August and September due to the targeted wells being shut-in for workovers. The company expects production to increase as the workover program progresses and with the completion of the SA-3.
In continuation of the company's South Alibek Field development program, drilling commenced on well SA-15, the eighth of 21 identified proven well locations within the field, on September 23, 2005. The rig is currently drilling a 12-1/4 inch intermediate well bore at approximately 3,600 feet, with a programmed total depth of 12,600 feet. The SA-15 site is approximately 2,000 feet west of SA-17 and is in a similar flank location in the field as SA-14 and SA-3. The success of wells SA-14, SA-3 and SA-15 should allow for continued extension of the previously estimated area containing proved reserves.
About Transmeridian Exploration Incorporated
Transmeridian Exploration Incorporated ("TMEI") is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. TMEI primarily targets medium-sized fields with proven 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 Kazakhstan and Azerbaijan.
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. Such forward-looking statements include statements regarding expected timing of drilling and workover operations and anticipated levels of production. 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, 2004, and other filings with the Securities and Exchange Commission. Although Transmeridian Exploration Incorporated 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.