Transmeridian Says South Alibek Drilling Program on Track

In the first quarter of 2004, the Transmeridian Exploration continued with its infield drilling operations with two new wells, the, SA-5 and the SA-17 in the South Alibek Field in Kazakstan. These two wells are being drilled on locations that currently have proved undeveloped reserves. As of June 14, 2004, the SA-17 is at 7,251 feet and running intermediate casing after encountering the top of the KT1 carbonates. The SA-5 was at a depth of about 11,500 feet drilling within the KT-2 reservoir interval. Both wells are planned to be drilled to a total depth of approximately 13,000 feet and are targeted to encounter the same zones as the previous 3 wells drilled in the field.

In Well SA-5, 190 feet of well bore cores through the major reservoir intervals of the KT1 and KT2 sections have been obtained. The core samples taken through the potential reservoir intervals showed oil bearing rock which we believe confirms the presence of high quality reservoir intervals in this well. The current drilling program includes 2 more wells to be cored in this manner to facilitate reservoir evaluation and the planning for field development.

"At present, we believe that the pace of the current drilling program should give us 4 new wells this year to bring the total well count to 7 wells which would satisfy our forecast for this year," commented Lorrie Olivier, Chairman and CEO. "And we would like to escalate this current drilling pace next year with the additional sales capacity provided by our pipeline connection."