Transmeridian Logs Pay with South Alibek 1 Well

Transmeridian Exploration has revealed the details of the logging results of the South Alibek -1 (SA-1) well. This first well of an initial seven-well drilling program was drilled to a total depth of 12,435 feet (3,790 meters) encountering over 4,800 feet (1,460 meters) of carbonate in the combined KTI and KTII formations with a combined gross reservoir section of 3,471 feet (1,058 meters) and an estimated 531 feet (162 meters) of net oil pay. With the aid of Schlumberger's advanced logging systems and their proprietary ELAN(a) analytical software we have identified an estimated 360 feet (110 meters) of net oil pay in the KTII reservoir, and 171 feet (52 meters) in the KTI reservoir.

Four intervals in the KTII have been initially selected to test a gross reservoir thickness of 436 feet (133 meters) with 300 feet (91 meters) of perforations. Test production will be trucked to a local rail terminal for sale to local refineries. All our test production will be handled in this manner until our facilities at the Emba rail terminal are operational later this year. The first reservoir interval for testing, at a depth of 11,440 feet (3,487 meters), will be perforated over a gross reservoir thickness of nearly 200 feet (59 meters) with 141 feet (43 meters) of perforations. Schlumberger is contracted to perform this work employing their most powerful guns available for maximum depth of penetration into the reservoir to maximize the productivity of the interval. After sufficient production data has been recovered from this interval we will move to the next intervals in succession to determine an accurate profile of the production capability of the entire KTII section.

"Needless to say, we are encouraged by the logging results, which have exceeded our expectations," commented Bruce Falkenstein, Vice President Exploration & Geology. "Schlumberger is playing a key role in the initial phase of operations by providing the technological edge we need in the evaluation of our first well. Based on the logging data, our projections for the field remain on track."