PPC.L Regulatory News (PPC)

15 May 2006 07:00

Meridian Petroleum PLC15 May 2006 15 May 2006 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") Delores Evaluation Suggests P50 Gas-In-Place of 547 Bcf Meridian, the oil & gas exploration and production Company with key assets inthe USA and Australia, today issued the following update on its DeloresProspect. The Delores Prospect is in licence PELA 132 in the Arrowie Basin, onshore SouthAustralia, located some 40 kilometres east of the Moomba-Adelaide gas pipelinelinking the Cooper Basin gas fields to the South Australian gas consumers.Meridian has a 100% working interest in the licence and is planning to drill theDelores Prospect later this year. At the request of Meridian, Scott Pickford, part of RPS Energy, carried out anindependent evaluation of the Delores Prospect and have classified the Prospectas Prospective Resources (using the SPE/WPC as the Standard required by the AIMGuidance) with a "best estimate" Gas-In-Place of 547 Bcf (approximately 91mmboe)for the Prospect. This results in an estimated P50 gas recoverable of 432 Bcf,based on approximately 80% recovery factor (approximately 72 mmboe). ScottPickford assigns a chance of success of 20% or 1 in 5 to the Delores Prospect. Gas - Prospective Resources Gross (Bcf) Net Attributable (Bcf) Risk Factor * Operator Low Best High Low Best High Estimate Estimate Estimate Estimate Estimate Estimate Delores 188 Bcf 432 Bcf 942 Bcf 188 Bcf 432 Bcf 942 Bcf 1 in 5 MeridianProspect Petroleum *Risk - The chance or probability of discovering hydrocarbons in sufficient quantity for them to be tested to the surface The Delores Prospect is covered by a moderate density 2D survey originally shotand processed in 1986. The original interpretation of this data revealed astructural feature which showed a strong amplitude anomaly which appeared tobasically match the structural closure. To further evaluate the prospectarea, 10 lines were reprocessed by Meridian in 2006 utilizing such techniques asto preserve the amplitudes within the dataset for Amplitude versus Offset ("AVO") analysis to be undertaken. The analysis shows that there are some marked AVO responses within the data and this has been interpreted as potentially indicating gas filled porous sandstones to be present. PELA 132 is one of four licences in which Meridian has a 100% working interest(PELA 131, 132, 133 & 134) within the Arrowie Basin, which covers some 35,000square kilometres. Meridian expects that there would be additional potential tobe worked up in the event of a success at Delores. The demand for gas in the region is increasing steadily and the market wasrecently de-regulated. The Petroleum Act of 2000 means that the licensing andfiscal regime in Australia is now very attractive with a 'tax and royalty'system which allows for various exploration and operating cost recovery beforetax is calculated. Mr Tony Mason, Chief Executive of Meridian, said: "An estimated P50 Gas-in-Place of 547 Bcf is a very significant outcome forDelores and for Meridian with the prospect of further potential in the Basinfrom our other licences. The demand for gas in the region is growing whilemarket de-regulation and a favourable licensing and fiscal regime make for avery attractive operating environment. "Exploitation of Delores will be best achieved with a locally-based partner. Weare in active discussions with a potential partner with a view to commencingdrilling around the turn of the year." Mr Andrew J. Kirchin, Managing Director of Scott Pickford, who meets thecriteria of a qualified person under the AIM rule guidance for mining, oil andgas companies, has reviewed and approved the technical information containedwithin this announcement. Enquiries: Meridian Petroleum (020 7409 5041) Tony Mason, Chief Executive Westhouse Securities (020 7601 6100) Bill Staple Richard Morrison Citigate Dewe Rogerson (020 7638 9571) Media enquiries: Martin Jackson / George Cazenove Analyst enquiries: Nina Soon This information is provided by RNS The company news service from the London Stock Exchange