1132645--3/16/2006--TRANSMERIDIAN_EXPLORATION_INC

related topics
{gas, price, oil}
{debt, indebtedness, cash}
{cost, regulation, environmental}
{control, financial, internal}
{cost, contract, operation}
{loss, insurance, financial}
{competitive, industry, competition}
{personnel, key, retain}
{operation, international, foreign}
We have a history of losses. Our exploration and development activities may not result in economic quantities of oil and gas. Oil and gas operations can be hazardous and may expose us to environmental liabilities. The actual quantities of, and future net revenues from, our proved reserves may prove to be lower than we have estimated. If oil and gas prices decrease or our exploration efforts are unsuccessful, we may be required to write down the capitalized cost of individual oil and gas properties. All of our operations are conducted in areas with inherent international and governmental risks. We have not finalized a long-term production contract with the government of Kazakhstan and our current exploration contract is scheduled to expire in 2007. Our business and results of operations depend on our ability to transport our production to viable markets and on the price at which we can sell our production. Oil prices are volatile. A decline in prices could adversely affect our financial position, results of operations, cash flows, access to capital and ability to grow. Our substantial indebtedness could adversely affect our financial condition. Covenants in the indenture governing our senior secured notes due 2010 impose significant restrictions on us. Significant capital expenditures are required to execute our development program. Competition in our industry is intense, and many of our competitors in the Kazakhstan region have greater financial and other resources than we do. Compliance with governmental regulations could be costly. The loss of key personnel could have an adverse effect on our business. We have reported a material weakness in our internal control over financial reporting that, if not remedied, could adversely affect our ability to meet reporting obligations and provide timely and accurate financial statements.

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