HOUSTON, July 20, 2007 (PRIME NEWSWIRE) -- Transmeridian Exploration Incorporated (AMEX:TMY) today announced that the first re-entry workover in the Gasha Field in Dagestan, Russia was successful in opening a previously untested interval in the Upper Foraminiferal zone of well 28 at a depth of about 2,000 meters. The initial well tests reported flow rates of 450 barrels per day of condensate and 5.7 million cubic feet per day of sweet gas. The testing has been constrained by the high surface flowing pressures of about 4,400 psi.
Limited tests of the Upper Foraminiferal interval were conducted in the 1950s with no reported production. The field was eventually developed and produced with about 30 wells in the deeper Cretaceous carbonates until 1975, when the field was shut in due to reported low reservoir pressures. Re-evaluation work by the government in the mid-1990s indicated that the reservoir pressures have recovered to close to the original formation pressure.
The field is located near existing oil and gas export pipelines, which will allow for low cost access to internal and export markets. The company currently holds a 50% working interest in the field.
"Finding a new productive zone in the upper section of this well reinforces our premise that this field is significantly underdeveloped and holds substantial oil and gas reserve potential yet to be exploited," commented Lorrie Olivier, Chairman and Chief Executive Officer."
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, 2006, 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.