PPC.L Regulatory News (PPC)

3 Feb 2006 10:32

Meridian Petroleum PLC03 February 2006 03 February 2006 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") CALVIN drilling update Meridian Petroleum (AIM: MRP), the oil & gas company with key assets in the USAand Australia, announced on 24 January that its Calvin 36-1 well on the CalvinField, Winn Parish Louisiana (80% WI), had encountered a substantial gas show inthe Sligo Petit Zone. The well was flowed on a limited open hole test with a25/64 inch choke in excess of 1mmcfpd. Based upon the analysis of previous production data from the Sligo Petit Zone,the Company anticipates the following break down of the gas and condensate mix -Carbon Dioxide 3.14% to 11.66%, Nitrogen 3.75% to 5.28%, Methane 76.97% to83.11% and Propane 0.95% to 2.36%. Due to the default and non consent of the original owner of the Calvin lease,Meridian's Net Revenue Interest will increase to 67.75% from 60% until asignificant financial penalty is paid through the increased production revenue. Meridian is moving ahead as quickly as possible to complete the well andcommence production into the nearby pipeline. Anthony Mason, Chief Executive of Meridian said: "We are very pleased with the likely rich condensate content of the Calvin wellwhich will enhance our revenue from the field. While unfortunate, the previouslease owners default increases Meridian's revenue share enabling costs to berecovered more quickly." Enquiries: Meridian Petroleum (020 7409 5041) Tony Mason, Chief Executive Citigate Dewe Rogerson (020 7638 9571) Media: Martin Jackson / George Cazenove Analysts: Nina Soon This information is provided by RNS The company news service from the London Stock Exchange