Transmeridian Exploration Re-Enters First Well at Gasha Field

Transmeridian Exploration says its first re-entry workover in the Gasha Field in Dagestan, Russia was successful in opening a previously untested interval in the Upper Foraminiferal zone of well 28 at a depth of about 2,000 meters. The initial well tests reported flow rates of 450 barrels per day of condensate and 5.7 million cubic feet per day of sweet gas. The testing has been constrained by the high surface flowing pressures of about 4,400 psi.

Limited tests of the Upper Foraminiferal interval were conducted in the 1950s with no reported production. The field was eventually developed and produced with about 30 wells in the deeper Cretaceous carbonates until 1975, when the field was shut in due to reported low reservoir pressures. Re-evaluation work by the government in the mid-1990s indicated that the reservoir pressures have recovered to close to the original formation pressure.

The field is located near existing oil and gas export pipelines, which will allow for low cost access to internal and export markets. The company currently holds a 50% working interest in the field.

"Finding a new productive zone in the upper section of this well reinforces our premise that this field is significantly underdeveloped and holds substantial oil and gas reserve potential yet to be exploited," commented Lorrie Olivier, Chairman and Chief Executive Officer.