PPC.L Regulatory News (PPC)

27 Apr 2006 07:02

Meridian Petroleum PLC27 April 2006 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") Activity Update Meridian, the oil & gas exploration and production Company with key assets inthe USA and Australia, today issued the following update on its activities. Victory 1-21 (10% WI) As a result of the completion and acidization of the well, fluid is currentlybeing removed from the well bore. However, the well is continuing to producegas at the rate of 150 - 250 mcfgpd during this process. The removal of thisfluid is expected to take between 30-45 days following which it is anticipatedthat production will rise to approximately 1 mmcfpd. The well deepening enabledan additional 31 feet of net pay to be exposed. The well is on line and tied into the local system. Calvin 36 # 1 (80% WI) The Company is proceeding as planned with the completion and tie in of theCalvin 36 # 1 well. This is a complex reservoir and requires a conservative andwell considered approach. The plans for completion are still on track althoughthe Company has experienced some small hold ups in obtaining the appropriatepersonnel and equipment at the right time. The Company is maintaining aconservative and realistic approach and will keep the market informedaccordingly. The Company anticipates completion and tie in within the next 30days. Meridian is developing plans to re-enter the Calvin 5 # 31 well to test theRodessa zone and potentially produce from either Sligo Petit or Rodessa zones.This well is already cased and as such this planned work over is anticipated toentail minimal capital expenditure. Re-entry is planned to commence after thecompletion of the 36 # 1 well. Orion (100% WI) The Company has commenced the permitting process with the State of Michigan DEQand has recently signed the second 40 acre lease block with the land ownertherefore enabling an 80 acre unit to be established. A survey of the surfacelocation has taken place and steps to enable the relevant insurance coverage tobe put in place have commenced. Drilling activity is likely to commence, basedon permitting and approvals, towards the end of the second quarter. Milford 36 (25% WI) The Company plans to utilize coiled tubing on the well bore and drill severallateral legs. Drilling activity is likely to commence towards the end of thesecond quarter. Hustler (80% WI) Meridian has acquired the Old South Royalty lease in the centre of a definedarea for potential production form the Lower Tuscaloosa oil sands. In order todevelop this position further the Company has commenced acquisition of seismicleases with an option to drill in some 800 acres around the old South Royaltylease. The Company is finalizing an agreement to shoot 3D seismic with aHouston based partner over the entire acreage position, possibly in the 3rd or4th quarter. Utilization of 3D seismic will minimize dry hole risk by theclearer identification of the sand channels initially identified by the Companywith the re processing of the original 2D seismic lines. Emery Hudson The Company is currently reviewing the 3D seismic data with a view to a possiblere-entry in the third quarter. Coal Bed Methane Meridian has identified a significant CBM project in the USA on which a detailedfeasibility study has been completed by an independent consultant in the region. This study is currently being reviewed by Scott Pickford, the Company'sreserve engineers. Following the review by Scott Pickford, anticipated in thenext few weeks, the Company expects to lease an initial foot print in order toundertake a pilot project. Australia, Dolores Prospect (100% WI) Meridian has conducted a detailed review of all of the original data associatedwith this prospect. This in turn entailed the re-processing of the originalseismic lines and also a detailed AVO analysis on certain portions of theselines. This analysis reported several distinct hydrocarbon indicators and twopotentially significant reservoirs. This data and the supporting study arebeing reviewed by Scott Pickford in the UK and an opinion will be renderedshortly. The prospect is located approximately 40km West of the Moomba toAdelaide pipeline and is therefore not "stranded gas". Anthony Mason, Chief Executive of Meridian said: "Meridian continues to move its key projects forward with the primary objectiveof achieving stable and sustainable cash flow. We are particularly encouragedby the potential of our CBM and Australian prospects studies which are currentlybeing assessed by our reserve engineers." Don Caldwell, a certified petroleum geologist, is the Company's Qualified Personand has reviewed and approved the information in this announcement. Enquiries: Meridian Petroleum (020 7409 5041)Tony Mason, Chief Executive Westhouse Securities (020 76016100)Bill StapleRichard Morrison Citigate Dewe Rogerson (020 7638 9571)Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Nina Soon This information is provided by RNS The company news service from the London Stock Exchange