transmeridian exploration, inc. ipaa ogis small cap conference february 8, 2005

TransMeridian Exploration, Inc.IPAA OGIS Small Cap Conference

February 8, 2005

Forward Looking Statements

This presentation contains “forward-looking statements” within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing reserves and other factors disclosed in the Company’s Annual Report on Form 10-K for the year ended Dec. 31, 2003 and the Company’s subsequent Quarterly Reports on Form 10-Q, especially in the risk factors sections of these SEC reports. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company does not undertake any obligation to update the forward-looking information contained in this presentation.

Corporate Profile

OTC:BB TMXN 52 week high/low: $2.20 / $0.79 Shares outstanding: 80 million shares Market cap/Enterprise value: $140 mil./$178 mil. FMV of reserves: $295 million Average trading volume: 197,200 per day

Business Strategy

Acquire and develop overlooked/underdeveloped reserves

Current focus -- Caspian Sea Region of FSU Target medium sized fields with –

Low initial entry costs Identified reservesSignificant upside reserve potentialQuick payback period (two to three years)Likelihood of lower than average international

findings cost

Why the Caspian Region?

4% - 5% of the world’s total reserves - Largely undeveloped or underdeveloped

Very favorable economics relative to global peers - Full cycle costs average less than $5.00/bbl

Favorable tax and regulatory environment

Transportation bottlenecks set to be removed - Existing and proposed pipelines continue to expand

Expanding Regional Pipeline System

First Asset: South Alibek Field

Kazakhstan government actively encouraging foreign investment – Goal of increasing production from 1 to 3 mm bopd over the next decade

Good infrastructure - all-weather roads - electric power - rail and pipeline facilities

Service company support - Improving capability of local service companies - Improving presences of Western service companies – access to Western technology and methods

Existing and proposed pipelines continue to be expanded

Atyrau-Samara Pipeline

CPC Pipeline

Pipeline

Aktobe

Emba

South AlibekField

Tengiz9 BBO

Kashagan7 BBO++

Atyrau

Rail line

South Alibek Field - Detail Map

Adjacent to the Alibekmola Field - under active development - currently producing 23,600 bopd

South Alibek is on the down-thrown side of a large North / South trending fault which separates the two fields.

License acquired by TMEI covers 14,000 acres.

Drillied five wells to date - all commercial - various stages of completion

Per Ryder Scott evaluation (Feb. ’04) - 65 million bbls “proved” - 193 million bbls “proved” and “probable”

Proved Area

Reinterpretation of seismic improved mapping of the SA Field and increased areal extent of field in 2004,

Proved – 1,600 acres

+ Probable – 6,500 acres

+ Possible – 13,000 acres

Completed wells

Currently completing

Proved Area

2005 planned wells

KT2 Top Depth Structure Map

Alibekmola Field

South Alibek Field

Currently completing

Probable Area

Approx. Possible Area

Multiple Reservoirs – Good Seals

South Alibek and Alibekmola Fields

Combination Porosity and Fractures

Post depositional faulting - deeper oil water contact in South Alibek Field

Limestone and dolomitic reservoirs with combination porosity and fractures

Seals provided by inter-bedded shales

Vertical and lateral migration pathways

Combined up to 500 net feet of pay

SA -1

Jurassic

Triassic

U. Perm

L. Perm shale

Visean Clastics

East

Prospective basal conglomerates

MKT Shale

KT-II

KT-I

Kungarian Salt

Kungarian Salt

Zone 4

4o dip

8-10o dip

Zone 2

Prospective Devonian Carb?

Main bounding fault

West

South Alibek and Alibekmola Fields

Accomplishments

AccomplishmentsExploration contract covering 14,000 acres –

recently extended through April 2007Drilled five wells – currently in various stages of

completion. Sixth well drilling -- near TD.Completed permanent production facilities –

capacity to process up to 30,000 bopdExecuted transportation agreement with KazTrans

Oil – allow access to pipelines/export market

Near Term Objectives

Near Term ObjectivesComplete/stimulate new wells

- Increase productionContinue to improve pricing Install de-mercaptane unitComplete connection to pipeline (1.5 km)Finalize production contractRe-finance field development loans – lower cost

Other Opportunities in the Region

Future Projects -- Azerbaijan

Future Projects – Saizan Area

Financial Overview

Summary Balance Sheet

(In thousands) December 31, September 30, 2004 2003 Historical Pro Forma

(a)

Current assets $ 2,068 $ 2,087 $ 26,087Property and equipment, net 54,560 71,830 71,830Other assets 471 279 279

$ 57,099 $ 74,196 $ 98,196

A/P and accrued liabilities $ 3,778 $ 12,614 $ 2,614Total debt and interest 52,815 43,914 43,914Minority interest -- 8,256 18,756Stockholders’ equity 506 9,412 32,912

$ 57,099 $ 74,196 $ 98,196

(a) Reflects net proceeds from issuance of $25 million of Cumulative Convertible Preferred Stock and $10.5 million capital contribution to Caspi Neft by Bramex

Results of Operations

(In thousands) Nine Months Ended September 30, 2004 2003

Revenue $ 3,049 $ 159Costs and expenses 5,569 3,530

Operating loss (2,520) (3,371)

Other income (expense) (849) (599)Minority interest 492 --Preferred dividends -- (20)

Net loss $ (2,877) $ (3,990)

Net loss per share $ (0.04) $ (0.06)

Wt. average shares outstanding 78,227 62,958

Private Placement

Closing Date: November 12, 2004

Securities: Series A Cumulative Convertible Preferred Stock

Issuance Amount: $25,000,000 USD

Yield: 4.50%

Conversion Price: $1.40 per share

Warrants: 25% warrant coverage – five year term; strike price equal to $1.55 per share

Registration: Form S-3 covering underlying shares filed in December 2004

Use of Proceeds: Working capital Fund development drilling program Complete treatment facilities and pipeline

connection Seed capital – new projects

Target Well Economics

Cost per well: $5.5 million

Target production rate: 1,000 Bopd

Current price: $20.00 / bbl

Expected future price: N. Sea Brent, less approx. $7.00 (trans. cost)

Royalty rate: 6.0%

Operating costs: < $2.00 / bbl

Income tax rate: 35.0% (all inclusive)

Cash payback : 8 – 12 months

Working interest 50% (subject to 10% net profits interest after payout)

Investment Considerations

People, property and prospects

Transitioning from development stage to operating company

Value has not been reflected in stock price

Multiple new projects in region that fit business plan