Transmeridian Exploration Begins Production from Well SA-3

Transmeridian Exploration has first production from its seventh well, SA-3, in the South Alibek Field in Kazakhstan. This recently completed well flowed at an initial rate of 1,300 barrels of fluid per day from an 11 mm choke after perforation and acidizing of about 158 feet of the KT2 Formation. The well is currently cleaning up and the flow rate is expected to stabilize to between 800-1,000 barrels of oil per day (bopd) on this choke setting. The SA-3 is approximately 2,200 feet southwest of SA-17 and is in a similar flank location in the field as SA-14, with log estimated net oil pays in both the KT1 and KT2 comparable to that of the other wells in the field.

Five of the seven wells in the field are either scheduled for, or undergoing, workovers at the present time; however, progress has been slower than expected due to delays in availability and delivery of necessary equipment. Production from the field averaged approximately 1,000 bopd during August and September due to the targeted wells being shut-in for workovers. The company expects production to increase as the workover program progresses and with the completion of the SA-3.

In continuation of the company's South Alibek Field development program, drilling commenced on well SA-15, the eighth of 21 identified proven well locations within the field, on September 23, 2005. The rig is currently drilling a 12-1/4 inch intermediate well bore at approximately 3,600 feet, with a programmed total depth of 12,600 feet. The SA-15 site is approximately 2,000 feet west of SA-17 and is in a similar flank location in the field as SA-14 and SA-3. The success of wells SA-14, SA-3 and SA-15 should allow for continued extension of the previously estimated area containing proved reserves.