Transmeridian Exploration, Inc (fka TMYEQ)

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C.A.T. oil AG: Strong and successful expansion in 2007
• Revenues up 15.0% YoY to EUR 222.6 million • Massive increase in operative capacity • Geographic expansion to European Russia • New businesses launched

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April 30, 2008 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the leading
providers of oil and gasfield services in Russia and Kazakhstan, today announced
the annual results for the financial year 2007. The reporting period was marked
by an impressive progress in the transformation of C.A.T. oil AG from a West
Siberian fracturing niche player into a diversified oilfield service company.
The Company successfully expanded into new high-growth, high-margin businesses
and new regions within and outside of Russia. The Company invested record EUR
89.1 million in new capacity additions and thus managed to significantly
increase its operating capacity both, in its core and new businesses.

Revenues up 15,0%

In 2007, C.A.T. oil´s revenues reached a new peak of EUR 222.6 million, up 15%
YoY. The key revenue drivers were a 5.9% YoY increase in the Company´s total job
count to 2,473 jobs (2006: 2,335 jobs) and an 8.5% YoY gain in an average
revenue per job to thou. EUR 90 (2006: thou. EUR 83). With more and more new
capacity becoming operational during the year, the Company´s 2007 quarterly job
count demonstrated strong YoY growth in the course of the year. Concurrently,
new capacity additions to the hydraulic fracturing business were more difficult
to market and deploy in the middle of the year without discount as the
fracturing market competition intensified. Additionally, demand for gas
fracturing jobs was lower than a year ago due to a mild winter in the northern
hemisphere. As a result, C.A.T. oil realized a slightly lower revenue growth
than originally expected for 2007. The Company´s EBITDA increased 8.8% YoY to
EUR 49.7 million compared to EUR 45.7 million in 2006. EBITDA-margin decreased
to 22.3% (2006: 23.6%). Earnings before interest and corporate tax (EBIT) were
essentially flat YoY at EUR 37.2 million (2006: 36.9 million), driving the EBIT
margin contraction to 16.7% in 2007 from 19.1% in 2006. C.A.T. oil´s net income
decreased 9.4% YoY to EUR 22.7 million (2006: EUR 25.0 million) as an unrealized
foreign exchange loss on intercompany loans surged to EUR 4.7 million in 2007
compared to thou. EUR 745 in 2006 on the back of the accelerated ruble
devaluation against Euro in the third and fourth quarter of 2007. As a
consequence, earnings per share amounted to EUR 0.46 compared to EUR 0.54 in
financial year 2006.

2007: year of investments and business expansion

Manfred Kastner, CEO of C.A.T. oil AG commented: "2007 was a very important year
for the development of our company. With our extensive investment program we
managed to enhance our regional and service coverage and our customer base. This
strategy of aggressive expansion combined with our technical expertise, our
highly qualified staff and the financial strengths of our Company, paves the way
for sustainable growth in 2008 and beyond."

In 2007, C.A.T. oil invested EUR 89.1 million in the operating capacity
additions. By the end of the year, C.A.T. oil extended the number of operating
hydraulic fracturing fleets 67% YoY to a total of 15 fleets. The Company´s
sidetrack drilling capacity rose 400% YoY to a total of 10 rigs. This
substantial expansion in the sidetrack drilling capacity facilitated a 153% YoY
increase in a total sidetrack job count in 2007. The performance in this
business was supported by rising job complexity and a greater share of higher
added value horizontal sidetracks at expense of less sophisticated inclined
sidetracks. Additionally, C.A.T. oil expanded its capacity for coiled tubing and
nitrogen services 50% YoY. These substantial capacity additions demonstrate the
Company´s commitment to defend its ample market share in the Russia and Kazakh
fracturing markets and meet the rising demand for its second core business,
sidetrack drilling, in a growing and booming market environment.

In 2007, C.A.T. oil benefitted both from intensifying and broadening customer
relationships. Long standing and successful cooperation over a number of years
led to an increased trend towards multiple-year strategic partnerships and order
contracts comprising a broader scope of services. In March 2007, C.A.T. oil´s
operating subsidiary CATKoneft was awarded a three-year-contract with Rosneft,
the largest oil producer in Russia. In November 2007, Rosneft charged the
operating subsidiaries of C.A.T. oil with another 385 fracturing jobs for the
challenging oil fields in the Yugansk area. In the fourth quarter of 2007 C.A.T.
oil´s subsidiary CATBOBNEFT was named winner in two major tenders by TNK-BP for
three-year-contracts for sidetrack drilling and workover services at the
Samotlor field, one of the largest oil fields in the world. Another positive
development in late 2007 was the deployment of two sidetrack drilling rigs in
Noyabrsk area for Gazprom´s oil subsidiary Gazprom Neft, which the Company
concluded a strategic partnership with back in 2006. C.A.T. oil also won a
tender to deploy two additional sidetrack drilling rigs for Gazprom Neft in
2008.

Another important step for C.A.T. oil was the expansion of its business to
European Russia. In April 2007, the Company acquired a 100% stake in the
oilfield services company FilOrAm from TNK-BP. The Company is located in
Orenburg region in the European part of Russia and provides C.A.T. oil with
strategic access to Russia´s Volga-Urals oil and gas basin, as well as a highly
competitive base towards northwestern Kazakhstan.

In 2007, C.A.T. oil not only expanded regionally, but also further advanced in
the diversification of its service portfolio. In July C.A.T. oil entered the
fast growing segment of geotechnical services, including 2D/3D seismic and
reservoir engineering by forming the new subsidiary CAToil-Geodata and hiring a
team of approximately 90 industry professionals. After more than a decade of
under-exploration in Russia, seismic is another booming business in the Russian
oil field service sector.

Record capital expenditures for future diversification and growth

In 2007, C.A.T. oil generated a cash flow from operating activities of EUR 21.1
million compared to EUR 23.4 million in the previous year. The decline is mainly
due to higher investments in working capital to pursue growth and
diversification strategies resulting in a build up of inventories for new
businesses and materially higher VAT prepayments for equipment.

The financial year was earmarked by the comprehensive investment program leading
to record investments in property, plant and equipment of EUR 89.1 million, up
34% YoY from EUR 66.5 million in 2006. C.A.T. oil´s cash flow from financing
activities amounted to EUR 8.0 million, reflecting primarily short-term
overdraft facilities used by the Company´s operating subsidiaries. On December
31, 2007, C.A.T. oil had cash and cash equivalents of EUR 15.0 million compared
to EUR 74.5 million at the end of 2006. C.A.T. oil´s balance sheet underlines
the Company´s dynamic growth and moderate financial policy. Total assets
increased 21.5% YoY to EUR 285.3 million and equity rose 8.7% YoY to EUR 234.9
million at the end of 2007 (2006: 216.1 million). Despite a sharp increase in
current and non-current liabilities to EUR 50.6 million (2006: EUR 18.8
million), the equity ratio´s level remained high with 82.3%.

In line with C.A.T. oil´s massive investment program, the Company´s average
weighted headcount increased by 32.4% to 3,127 employees (2006: 2,362
employees).

Sidetrack drilling to drive growth in 2008

In 2008 sidetracking drilling will remain the Company´s fastest growing
business. With currently 10 operating mobile sidetrack drilling rigs, C.A.T. oil
is among the top three independent sidetrack drilling service providers in
Russia. C.A.T. oil will benefit from a sustained wide gap between supply and
demand for sidetrack drilling services in the Russian oil industry resulting in
further price gains in 2008. Based on the existing back log of sidetrack
drilling jobs for 2008, C.A.T. oil is confident that it can increase its
sidetracking job count by 190%.

Despite the intensified competition in the Russian hydraulic fracturing market,
C.A.T. oil stays highly competitive on price and quality and anticipates its
fracturing job count rise 15% YoY in 2008.

Positive outcome is also expected from the growing business seismic services.
With a total of five 2D/3D crews, the Company is well positioned to benefit from
the increasing demand for this service.

In 2008, C.A.T. oil plans to expand into conventional drilling services to
benefit from a major upturn in greenfield capital expenditures. To this end,
C.A.T. oil has already ordered three new 180-ton mobile drilling rigs in 2008,
which have a significant technical advantage over Russian rigs currently
operating on the various oil fields. These mobile rigs are also efficient to
perform sidetrack drilling jobs, in particular deep ones.

Manfred Kastner, CEO of C.A.T. oil AG, outlined: "More than ever C.A.T. oil is
in an excellent position to benefit from the fast growing demand for oil and gas
services in Russia and Kazakhstan. Oil and gas producers show a fast increasing
interest in the employment of reliable independent service companies with
advanced and sophisticated technical capabilities and technologies. With our
extensive investment program we have expanded in core and new services and
technologies which confirm our standing as a preferred partner for the majors in
the industry. Our investments will certainly pay off in the future."

www.catoilag.com


About C.A.T. oil AG:
Austria-based C.A.T. oil AG (O2C, ISIN: AT0000A00Y78) is one of the leading
providers of oil- and gasfield services in Russia and Kazakhstan. C.A.T. oil´s
core business is hydraulic fracturing, a process which helps to open up oil- and
gas-bearing rock formations in order to increase or even enable oil and gas
production. The C.A.T. oil crews use state-of-the-art methods and technologies
to generate high pressure in the oil or gas reservoirs concerned. This pressure
causes cracks to appear in the rock through which oil or gas can be produced in
larger quantities from the production well, and hence efficiently boosts
extraction, particularly in the case of deposits that are difficult to develop
or low-output wells. In addition, hydraulic fracturing can be used to revitalize
wells that have previously been idle.

The Company has its headquarters in Vienna and employed 3,388 people at the end
of 2007, most of whom are based in Russia and Kazakhstan. Customers include
leading oil and gas producers such as Gazprom, KazMunaiGaz, LUKOIL, Rosneft, and
TNK-BP. C.A.T. oil has been listed in the Prime Standard of the Frankfurt Stock
Exchange since May 4, 2006, and has been a member of the SDax since September
18, 2006.


Further inquiry note:
Press contact:
A&B Financial Dynamics
Dr. Lutz Golsch Claudia Werth
Tel.: [phone] Tel.: [phone]
Email: [e-mail] Email: [e-mail]

emitter: C.A.T. oil AG
Kärtner Ring 11-13
A-A-1010 Wien
phone: [phone] - 0
FAX: [phone] - 20
mail: [e-mail]
WWW: http://www.catoilag.com
sector: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing: Börse Frankfurt
language: English

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