Macro Tsimmis

intelligently hedged investment

Transmeridian (TMY) update #7

Posted by intelledgement on Sun, 29 Jul 07

In another of their after-the-close-Friday announcements, Transmeridian Exploration management delivered the latest bad news with respect to their dispute with the Kazakhstani goverment over gas flaring at South Alibek field oil wells. The agreement management thought they had to resume production and continue gas flaring until 1 November has been revoked and while there is some chance that decision could be reversed again, management are focusing on getting the facilities in place to divert the NG to a local manufacturing facility ASAP (but it won’t happen before 1 November). So the production shutdown continues into a second month, with up to two more months to follow.

In light of their weak cash position, management have instituted cost-reduction measures. In the meantime, they continue to pursue buyout opportunities; presentation meetings are scheduled with interested parties in Europe next week. The sooner, the better.

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