Transmeridian Spuds Fifth Well in South Alibek

Transmeridian Exploration has spud South Alibek 17 (SA-17) on March 20, the fifth well of an initial seven well drilling program in the South Alibek Field in Kazakhstan. This well is a twinning of well 29, which was plugged last year due to mechanical problems, but had been on production prior to this problem. SA-17 is a half mile south of SA-1. The well is currently drilling at a depth of 1,225 feet. The company currently has SA-1 on test production. SA-2 and SA-4 have recently been completed and the testing program has begun. SA-5, spud on March 5, set surface casing last week and is currently drilling at 3,800 feet. The program depth for the two new wells is currently planned for 13,780 feet with the same KTI and KTII carbonate targets as the previous wells drilled in the field.

A testing program in both SA-4 and SA-2 is under way by the Company's contractor Schlumberger. The program is expected to be more time consuming than in SA-1 because it is designed to evaluate reservoir extensions as well as production capacity of the individual intervals. In SA-4, 420 feet of wireline perforations have been made between 13,665 feet and 12,195 feet over a gross interval of 1,470 feet. In SA-2, 85 feet were initially perforated via wireline, and a remaining 367 feet of tubing conveyed perforations are planned to be made from 13,714 feet to 12,818 feet over a gross interval of 900 feet. Following recovery of invaded filtrates and clean up of the perforated intervals, the wells will be acid stimulated by Schlumberger. Both wells will then undergo an extended period of production testing as is being done with SA-1. Based upon the finalized logging data and results of this evaluation phase, additional intervals in the KT2 may be perforated. Further details on the results will be provided after a sufficient amount of work has been completed and information on the results is evaluated.

Plans are underway on SA-1 to dual complete the well in the KT2 reservoir section. Proposals are currently being reviewed and will be implemented once a workover rig is moved to the field for this work to commence. Estimates made from the extended production testing indicate that with a dual completion the well will be capable to produce at higher rates than at present, currently averaging around 1000 barrels oil per day.

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