HOUSTON, June 24, 2005 (PRIMEZONE) -- Transmeridian Exploration, Inc. (AMEX:TMY) today announced that it has entered into a new contract for the sale of crude oil from its South Alibek field in Kazakhstan. The agreement provides for a price based on dated North Sea Brent crude oil less a transportation and quality discount. Deliveries are to take place at the nearby Zhem rail terminal. This pricing formula will allow the Company to realize approximately $36 per barrel at the Zhem station based on recent prices for North Sea Brent, which represents about a 70% price increase over the previous sales agreements for the field. The contract is effective July 1 and may be extended through the end of the year.
"This contract represents an important step forward for the Company," commented Lorrie T. Olivier, Chairman of the Board, President and Chief Executive Officer. "We have now achieved a production level and consistency that enables us for the first time to commit to a volumetric contract in the export market. As a result, we were able to obtain a significantly higher price for our production based on world pricing levels. The Company can now expand its export capacity with the current buyer or with other buyers as production capacity from the field increases. We will continue to work to improve our pricing by securing access to the regional pipeline system."
About Transmeridian Exploration, Inc.
Transmeridian Exploration, Inc. 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 medium-sized fields with proved 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 as well as Azerbaijan.
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, including statements regarding future pricing levels for crude oil deliveries, 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 identified or discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2004 and the Company's other filings with the Securities and Exchange Commission. 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.
Transmeridian Exploration, Inc. discloses proved reserves that comply with the Securities and Exchange Commission's (SEC) definitions. Note that the Company's use of terms such as "probable oil resources," "probable reserves," "possible oil resources," "ultimate potential," "resources" and "recoverable reserves" include quantities of oil that are not yet classified as proved and which SEC guidelines do not allow us to include in filings with the SEC.