Transmeridian Completes South Alibek-1 Well

Transmeridian Exploration has successful completed drilling operations on the South Alibek 1 (SA-1) well in Khazakstan. The well reached a total depth of 12,435 feet. The completion and testing program will immediately follow the logging of the well, which is currently in progress. This well will be followed by the drilling of South Alibek 2, approximately 1.5 miles northwest of SA-1, to drill the same formations, the KTI and KTII. This will be the second well of our initial seven well drilling program.

Under the program approved for the first phase of drilling, SA-1 was targeted to test the productivity and potential of the upper and lower KTII reservoirs. The top of the main target formation, the KTII was encountered close to the depth of 9,975 feet, with nearly 2,400 feet of carbonate drilled. "Drilling data indicates we encountered both reservoirs, as predicted, accompanied by indications of hydrocarbons during the drilling," commented Bruce Falkenstein, vice president of exploration and geology. "We encountered approximately 2,400 feet of carbonate in both the KTI and KTII, and anticipate having the preliminary results of the logging very soon for the first detailed look at both formations and to select the respective perforation intervals." The current testing program will provide production performance data from the various intervals encountered during the drilling of the well which will be essential in establishing a development program for the field.