Transmeridian Exploration reports that its 50%-owned subsidiary, OJSC Caspi Neft has executed amendments to its two primary loan agreements, pursuant to which the lender has granted it an extension of time for making all principal and interest payments due between February and mid-July 2005 under the two loan agreements until July 15, 2005. At the end of this deferral period, all previously scheduled payments, estimated to total approximately $14.4 million will be due and the remaining outstanding balance will be repayable according to the original payment schedules. In connection with the loan amendments, Transmeridian has agreed to advance up to $10.0 million to Caspi Neft to fund 100% of anticipated capital requirements for the first half of 2005.
"With six months relief from debt service, the additional capital provided by Transmeridian can be used exclusively for field development," commented Lorrie T. Olivier, President and Chief Executive Officer. "This will allow Caspi Neft to focus its efforts on increasing production and cash flow to levels needed to meet debt service requirements and to accelerate development of the South Alibek field."