PPC.L Regulatory News (PPC)

2 Aug 2007 11:55

Meridian Petroleum PLC02 August 2007 2 August 2007 MERIDIAN PETROLEUM PLC ("Meridian" or the "Company") AGM Statement and Operational Update Meridian Petroleum (AIM: MRP), the independent oil and gas exploration andproduction company with key assets in the USA and Australia announces that atthe Company's Annual General Meeting, held at 11:00am today in London, allresolutions were duly passed. Steve Gutteridge, Chairman, also gave the following update on its operations inthe USA. Highlights •Calvin 36-1 on-stream with average flow rate of 50 mcfpd during first week of production •Orion 36 scheduled for first gas in mid-August. .Milford 36 to be put on test to establish gas flow rates and potential for oil production; NRI increased to 29% •Company to seek farm-out or partial sale of Australian assets Calvin 36-1, Louisiana On 26 July 2007, Meridian Petroleum announced that it had commenced gasproduction from its Calvin 36-1 well in Louisiana. The well is producing fromthe shallow reservoir sands in the Calvin field in which the Company holds a68.75% net revenue interest. The Company's analysis of available reservoir data suggests that it will be someweeks before pressures build and a clear view of gas production capabilityemerges. Over the past week the well has flowed at an average rate of 50 mcfper day with a peak daily rate of 82 mcf per day. The Company is monitoringwell performance closely and will continue to clean-up the well bore over thecoming weeks. In respect of the further development of the deeper Calvin reserves through theJV with Ensight Partners, the Company is currently evaluating drilling a low-cost re-entry of the 5-29 well to test the Terryville sands potential. TheCompany is also considering the prospects for a higher-cost new well, with thepotential for multiple targets, including the higher pressure zones. Orion 36, Michigan The Company is making steady progress towards bringing the Orion 36 well inMichigan on-stream. The H2S processing and associated facilities at Orionrepresent a significant investment for the company involving the transportationand installation of several major items of equipment. Over the past month theCompany has experienced unforeseen delays in transportation including anincident where the refrigeration unit was severely damaged during transit. Weare now pleased to confirm that all these major units are safely on-site and thefinal processes of hook-up and testing are underway. CMS, the local utility andbuyer of the gas, has scheduled a target start-up date of 15 August 2007, andthe Board currently has a reasonable expectation that the Company and itscontractors will be able to meet that schedule. Milford 36, Michigan The results of the latest explosive perforation of the reservoir wereencouraging, but the tests also encountered unexpected oil shows. Whilst thesemay enhance future cash generation from the well, it could result in an increase in the investment in processing facilities required and add to the timeneeded to bring the well into production. Consequently, the Board has decidedto put the Milford 36 well on an extended 30 day test to more clearly establishthe economics of bringing the well on-line. As the Board is maintaining tightcontrol over cash commitments, it plans to commence this extended test once theOrion 36 well is on-line. The Company has recently increased its net revenueinterest in Milford 36 from 25% to 29% Stephen Gutteridge, Chairman of Meridian Petroleum, said: "We were pleased toannounce that the Calvin 36-1 well was producing last week. However it isproduction from Orion 36 that we believe will make a real difference to ourcash position, and our current focus is on delivering that as soon as possible.We are continuing to evaluate our plans for the development of Meridian'slarger potential assets and we are making progress in recruiting a Chief Operating Officer to assist with the Company's day-to-day activities as weexpand our production. Conservative management of our cash resources remainskey in the short-term and we will look for a farm-out or partial sale of the Dolores prospect in Australia and we are considering the disposal of our assetsin Mississippi to raise further cash." The Company also confirms that its new website is live from today, and can befound at www.meridianpetroleum.com. Art Davies, who works for West Mountain Operating, Inc., is an independentcontractor who meets the criteria of a qualified person under the AIM guidancenote for mining, oil and gas companies, has reviewed and approved the technicalinformation contained in this announcement with respect to Calvin. John Randell, who works for Wellmaster, Inc., is an independent contractor whomeets the criteria of a qualified person under the AIM guidance note for mining,oil and gas companies, has reviewed and approved the technical informationcontained in this announcement with respect to Orion. - ends - For further information contact: Meridian Petroleum Plc Ambrian Partners Parkgreen CommunicationsStephen Gutteridge, Chairman Neil Maclachlan Simon Robinson+44 (0) 20 7811 0140 Tim Goodman Erica NelsonTony Mason, CEO +44 (0) 20 7776 6400 +44 (0) 20 7851 7480+1 713 599 1611 Notes to Editors About Meridian Meridian is an oil and gas exploration and production company with key on-shoreassets in the United States and Australia. Meridian is quoted on the AIM marketof the London Stock Exchange (ticker: MRP), and is headquartered in London, withoffices in Houston, Texas and Adelaide, Australia. Meridian holds a net revenue interest of 68.75% for the shallow gas rights inthe Calvin Field. This information is provided by RNS The company news service from the London Stock Exchange