HOUSTON, Texas, Jan. 9, 2004 (PRIMEZONE) -- Transmeridian Exploration, Inc. (OTCBB:TMXN) announced today that logging results from the South Alibek No. 4 (SA-4) indicate the presence of significant oil pay. Oil bearing reservoir zones have been identified in both the KTI and KTII carbonate formations. The data indicates 440 feet of apparent net oil pay in the KTII reservoirs and 400 feet in the KTI reservoirs. This compares favorably to the oil pay thicknesses in the two other wells in the field, Alibekmola 29 and South Alibek No. 1. Production casing has been set to a depth of 13,780 feet in preparation for the well testing program.
SA-4 is the second well completed in our initial drilling program in the South Alibek Field. It is more than one mile southeast of SA-1, on the southern flank of the large structure which we estimate to be more than 10,000 acres in size. The third well of the drilling program, SA-2, is nearly three miles northwest of SA-4. This crestal well is currently at 13,025 feet, and is planned for a total depth of 13,800 feet.
As previously reported, SA-1 was estimated to have 360 feet of net oil pay in the KTII reservoirs, and 171 feet in the KTI reservoirs. Alibek 29 was estimated to have 418 feet of net oil pay in the KTII reservoirs and 358 feet of net oil pay in the KTI reservoirs.
Management Comments
"With this well, we are very optimistic about the potential of the South Alibek Field. Although preliminary, the results confirm our geologic model of the southeast flank of the field and will lead to an increase in proved reserves." commented Bruce Falkenstein, Vice President Exploration & Geology. "Additionally, an oil pay zone is identified 650 feet deeper than any other well in the field. This has exciting implications on the reserve potential for the entire field. The deeper `lowest known oil' impacts the areal extent of the field, indicating it may be larger than previously mapped and holding promise that larger ultimate reserves could result from the new data."
About Transmeridian Exploration
Transmeridian Exploration, Inc. (OTCBB:TMXN) is an independent oil and gas company with headquarters in Houston Texas. Founded in 2000, its primary objective is to acquire and develop oil properties in the Caspian Sea region of the former Soviet Union. TMXN primarily targets medium-sized fields with proved and probable reserves and upside reserve potential. Its first major project is the South Alibek Field in Kazakhstan.
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. TMXN 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.