Transmeridian Sees Positive Results from South Alibek #1

Transmeridian Exploration says the recently completed field confirmation well, South Alibek #1 (SA-1) in Kazakhstan flowed at a rate of 1,750 barrels of oil per day through an 11 mm choke with a flowing tubing pressure of 1,100 psi during testing over this past weekend. These significantly higher rates are a result of the acid treatment and cleanup of the reservoirs in the well. The well will be put on long term production testing to determine the appropriate production choke size. The Company perforated 280 feet in three separate intervals in the KT-2 formation. There are other potential zones in the KT-2 and at least 170 feet of prospective net pay in the KT-1 which will be evaluated at a later time.

"We are extremely excited about the final test results, as the rates easily fall within our expectations for the Field," commented Bruce Falkenstein, Vice President of Exploration and Geology. "These results confirm our projections of reservoir productivity and are a very positive indication for the ultimate productive capacity of the South Alibek Field."

The SA-1 produced nearly 13,000 barrels of test oil prior to the acid treatment. This oil was transported by truck to the Company's Emba terminal and sold into the local market. The oil from SA-1 will continue to be sold under this arrangement until the central processing facility for the Field is completed in early 2004. After this facility is completed and the volumes produced from the Field increase, the Company expects to sell its oil by pipeline into international markets.