Transmeridian to Consider Options for South Alibek
Transmeridian Exploration, Inc. plans to review strategic alternatives for its South Alibek field in Western Kazakhstan. The field represents substantially all of the assets of the company.
Strategic alternatives include the sale of a partial or complete interest in the field, a farm-in arrangement or a sale of the company in its entirety. The company has held discussions with potential strategic partners, including discussions initiated by such parties, and has executed confidentiality arrangements with certain of those parties.
"We believe the current market value of our common stock does not adequately reflect the value of the company's investment in the South Alibek field,'' commented Lorrie T. Olivier, President and Chief Executive Officer, "and we are committed to maximizing the value of that investment for our stockholders. We believe that everything we have done to date, including drilling exploratory and development wells, conducting geologic and engineering studies, building processing and other infrastructure in the field, obtaining access to the regional pipeline system and negotiating a long-term production contract, has increased the value of the field. In addition, we believe that our current development strategy will yield positive results from a production, reserves and value creation standpoint. While we will continue to conduct those development activities, we will at the same time actively review strategic alternatives that will enable our stockholders to realize a return that is more reflective of the true value of the field.''
There can be no assurance that the review of strategic alternatives will result in any agreements or transactions. The company does not intend to disclose developments with respect to the review of strategic alternatives unless and until its Board of Directors has made a decision regarding a specific course of action.
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 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.
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