Transmeridian Increases Reserve Estimate at South Alibek

Transmeridian Exploration has received confirmation of the total resource potential in the South Alibek Field in Kazakhstan as a result of the recently completed drilling of three wells, SA-1, SA-2 and SA-4 and an extensive geologic and engineering reevaluation of the field. Ryder Scott Company, a US independent engineering company, has been contracted by the Company to provide reserves estimates. As of December 31, 2002 Ryder Scott estimated gross proved reserves of 20.9 million barrels of oil and gross probable resources of 88.5 million barrels of oil. Ryder Scott now estimates 64.7 million barrels of proved oil reserves, three times the previous estimate, and probable recoverable resources of 128.1 million barrels, a 45% increase over previous estimates. Transmeridian Exploration currently owns a 50% interest in the South Alibek Field until the 10% carried working interest reaches payout. The gross ultimate recoverable potential of the field, which includes the proved reserves, probable resources and possible resources, is similarly increased from the previous estimate of 377 million barrels of oil. The extent of the field based on the newly released estimates encompass over 13,000 acres of the 14,111 acre license.

Management Comments

"We are very pleased with the estimates provided by Ryder Scott Company, a leading US company for providing independent estimates of reserves, and is in-line with our expectations," commented Bruce Falkenstein, Vice President Exploration & Geology. "The delineation of the field through drilling our initial seven development wells, combined with results of the extended production testing planned for our wells, is expected to prove up additional reserves from the larger resource base Ryder Scott has estimated for the field." The SA-5 and SA-17 are currently being drilled on proved undeveloped acreage, and if successful will add to the overall production and revenues but are not expected to significantly add to our proved reserves. The four additional wells are planned to be drilled following the completion of SA-5 and SA-17, and if successful they are expected to add proved reserves. "If these ultimate resources can be proved, full field development may require over 50 wells to be drilled during the life of the field."

Operational Update

The SA-5 is currently at a depth of 4,700 feet in a crestal location in the field between SA-1 and SA-2. The SA-17 has reached its first casing point at a depth of 760 feet and will continue on its drilling program during the weekend. SA-17 is a twinning of well 29 that was plugged last year due to mechanical problems. The drilling of both wells started in March, with a target completion in 120-160 days.

In SA-4, 420 feet has been perforated in the lower zones of the KT2 and the equipment is now in place at the well to begin the clean-up. The subcontractor Schlumberger is expected to begin acid stimulation work this weekend. The equipment will then be moved to SA-2 to complete the initial perforations of 450 feet in the lower zones of the KT2, to be followed by the clean-up and acid stimulation. The same completion equipment will then be used to re-complete SA-1 as a dual zone producer by the end of April.