NEWS
Transmeridian Exploration Secures $30 Million in Financing; Financing Milestone Achieved
June 30, 2003 12:11:00 (ET)
HOUSTON, Jun 30, 2003 (BUSINESS WIRE) -- Transmeridian Exploration Inc. (TMXN, Trade) announced today that it has secured a $30 million line of credit from Turan Alem Bank for the development of its South Alibek Field in Kazakhstan. The funds will be used for its ongoing development project, which includes an initial seven well drilling program, installation of a central production facility, construction of a 70 kilometer pipeline to the Emba Rail terminal and refurbishment of the terminal to handle crude oil sales from the Field.
The line of credit has a 36 month term with a 15% interest rate. There are no required payments of interest or principal during the first 24 months of the term. This financing is the first of two requirements for KSP, a Kazakhstan investment group, to acquire a 50% interest from TMXN in the South Alibek Field. The second element will be the retirement of $15 million of the original $20 million debt facility with Turan Alem Bank, which is expected to be completed in the near future. Upon closing of this transaction, KSP will hold a 50% equity interest in Caspi Neft TME, the Company`s operating subsidiary which owns title to the South Alibek Field.
Commenting on the additional financing from Turan Alem Bank, Lorrie Olivier, chairman and CEO of TMXN said, "This is a significant milestone in the development of the South Alibek Field. This financing will allow us to accelerate our drilling and development operations in the Field. Our goal is to achieve sufficient cash flow from the Field to fund future development operations and service our debt on the earliest possible timeframe."
OTHER MATTERS:
-- Testing of the recently-completed SA-1 well will continue in
early July with 2 new intervals targeted for evaluation. The
Company expects the well to be placed on long term production
testing in mid-July.
-- Rig 232 is preparing to commence drilling operations on SA-2
early in July.
-- We have negotiated a five-well turn-key contract with The
Great Wall Drilling Company at a cost of $2.9 million per
well. Great Wall Drilling Company will mobilize a 2000 hp
electric rig for the contract.
-- With two rigs drilling and one completion rig, the Company
expects to have three wells completed by the end of the year
and continuous drilling operations through 2004.
About Transmeridian Exploration Inc.
Transmeridian Exploration Inc. (TMXN) is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. TMXN primarily targets medium-sized fields with proved or probable reserves and significant upside reserve potential. Its first major project is the South Alibek Field in Kazakhstan. As of Dec. 31, 2002, the Company`s proved reserves in the Field were 17.1 million barrels, with an estimated net present value of $144 million. Ultimate potential of the field is estimated by Ryder Scott Company to be 378 million barrels of oil.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created therein. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to those discussed in the Company`s Annual Report on Form 10-K for the year ended December 31, 2002. Although Transmeridian Exploration, Inc. believes the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion herein should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
SOURCE: Transmeridian Exploration Inc.
Transmeridian Exploration Inc., Houston
Lorrie T. Olivier, 281/999-9091
Fax: 281/999-9094
E-mail: tmei@tmei.com
Web site: www.tmei.com or www.tmxn.com
or
MRB Investor Relations, LLC, New York
Charles Nelson, 212/495-0200 Ext.15
Fax: 212/495-0746
E-mail: cnelson@mrb-ir.com
