PPC.L Regulatory News (PPC)

8 Sep 2006 07:01

Meridian Petroleum PLC08 September 2006 8 September 2006 (AIM: MRP) MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") Interim Results for the Six Month period ended 30 June 2006 (Unaudited) Meridian Petroleum Plc, the gas and oil production and exploration company withassets in the US and Australia, announces its unaudited interim results for thesix month period ended 30 June 2006. Highlights: • Flow test of Calvin 36 Number 1 well in the Calvin Field, Winn Parish, Louisiana commenced in April 2006; further test work to enable link up to local pipeline and processing system ongoing • Commencement of leasing for the Coal Bed Methane (CBM) project in Alabama • Technical work completed on the Dolores prospect in South Australia and the ECL Scott Pickford report on the asset in question. Post Period Events • Acquisition of a 70% Net Revenue Interest (NRI) in the deep gas formations of the Calvin field, Winn Parish, Louisiana • Initial agreement with the Native Claim Group over the PELA 132 Dolores gas prospect, located in the Arrowie Basin, South Australia, signed in July 2006; Native Title expected from the South Australian government in the near future. Anthony J Mason, Chief Executive Officer, commented: "The period under reviewhas included significant milestones for the Company and we look forward toreporting further developments and successes in due course. The Company remainson track to move toward operating profitability before the 2006 year end." Ends For further information contact: Meridian Petroleum Plc Ambrian Partners Parkgreen CommunicationsTony Mason Neil Maclachlan /Richard Brown Simon Robinson / Victoria Thomas00 1 713-599-1611 +44 (0) 20 7776 6400 +44 (0) 20 7493 3713 MERIDIAN PETROLEUM PLC OPERATIONS OVERVIEW United States of America Calvin Field, Winn Parish, Louisiana Shallow Rights Plans are still on track to complete the Calvin 36 Number 1 well in theSligo-Pettet, anticipated for late October 2006. The completion involves a wellre-entry and some work at bottom hole and the hook up to the local pipelinesystem. Deep Rights In July 2006 the Company acquired a 70% Net Revenue Interest (NRI) in the deepgas formations of the Calvin field, Winn Parish LA, from the Sligo-Pettet downto the Lower Cotton Valley Troy Lime formation. The approximate value given tothis acquisition was 253 Bcf Gas-in-Place (GIP) and an estimated recoverablereserve of 158 Bcf. The acquisition closed on 28 July 2006. A detailed work schedule is being defined currently and the initial plan is toadopt a low cost approach via re-entry of two existing wells with casing inplace. Once this is completed a detailed field development study will becommenced which will cover both the shallow rights, Rodessa and Sligo Petit, andalso the exploitation of the deeper rights down to the Lower Cotton Valley TroyLime. Additionally; Meridian will look to take advantage of opportunisticacquisitions in the area to complement this acquisition and add additionalreserves. Coal Bed Methane, Warrior Basin, Alabama The Company completed the detailed studies and reservoir modelling of asubstantial CBM reserve located in the Warrior Basin, Alabama. The grossEstimated Ultimately Recoverable (EUR) Resource indicated in the ECL ScottPickford report was between 243 and 389 Bcf based upon varying levels ofpotential gas saturation in the coals. The Company is in the final stages ofcompleting the leasing of a pilot project footprint (4,000 acres) and is indetailed negotiations to define a joint venture structure for the production ofCBM over approximately 50,000 acres of the land in the same area. It isanticipated that the pilot project could commence late in the first quarter of2007. Emery Hudson 2.27B, Oceana County, Michigan The shut in Emery Hudson 2-27 well is currently being evaluated by the Companyutilising 3D seismic data. The Company is evaluating the most effective mannerin which to overcome the problem of "compartmentalization" in the reef. Orion, Oakland County, Michigan The leases for the Orion prospect were acquired by the Company in January andFebruary of 2006. The Orion, Michigan prospect will be drilled in late October2006. The Orion prospect contains a shut in reserve of some 2.1 Bcf ProbableReserves. Milford 36, Livingston County, Michigan Technical evaluation has been undertaken on this asset and the Company hasdeveloped plans to utilise coiled tubing on the Milford 36 well in late October2006 in order to drill several lateral legs in the existing well bore with theaim of enhancing production capability from the proven reserve. This wellproduces pipeline quality gas - needing no processing - and is sited on a trunkgas pipeline giving easy access to the gas distribution infrastructure. Victory 1-21, Mason County, Michigan The well was deepened in early Spring 2006 and additional pay added. The well iscurrently in limited production and it is anticipated that the production levelswill rise as progress on de-watering the well bore continues. Mississippi Projects The Company is currently reviewing seismic and additional technical data on itsMississippi projects - North Hustler Field, North West Summit, Grishams Branchand Cotton Creek - with a view to farming out the projects in the first quarterof 2007. Australia The Company has an interest of 100% in each of four gas prospect licences in theArrowie Basin and an interest of 100% in one gas prospect licence in the OtwayBasin, South Australia. The initial agreement with the Native Claim Group and its governing body ALTA,for PELA 132 Dolores, located in the Arrowie Basin, was signed on 21 July 2006.The Company is now awaiting final State Government approval of this agreementwhich is anticipated in the near future. The ECL Scott Pickford reserve summary on the Dolores prospect gave a P2Prospective Resource volume of 540 Bcf GIP. The Dolores resource is locatedapproximately 40 km from the Moomba to Adelaide pipeline. The Companyanticipates commencing work on a test well on the prospect in the first quarterof 2007, subject to putting in place the required team. Outlook The Company has an attractive mix of producing assets and a number ofdevelopment projects that also promise significant upside. The cash flow fromexisting production means that the Company benefits from having no debt andexpects to move into operating profitability this calendar year. Gaining access to the deep rights to the Calvin Fields and the success in movingtowards gaining a full Native Title agreement in Australia are concreteachievements of which the Company can be proud. The Company looks forward toreporting further developments and successes in due course. Anthony J MasonChief Executive Officer7 September 2006 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. MERIDIAN PETROLEUM PLC Interim Unaudited Accounts for the Six Months ended 30 June 2006 CONSOLIDATED PROFIT AND LOSS ACCOUNT Half year ended Year ended 30 June 30 June 31 December 2006 2005 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Turnover 4 61 88Cost of sales (17) (89) (115) ---------- ---------- ----------Gross profit/(loss) (13) (28) (27)Other operating charges (436) (436) (857) ---------- ---------- ----------Operating loss: (449) (464) (884)Interest receivable 7 8 12 ---------- ---------- ----------Loss on ordinary activities before and after taxation (442) (456) (872) ========== ========== ==========Loss per share (pence) Note 2 (0.6) (0.8) (1.4) CONSOLIDATED STATEMENT of TOTAL RECOGNISED GAINS and LOSSES Half year ended Year ended 30 June 30 June 31 December 2006 2005 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000Loss for the financial period (442) (456) (872)Currency differences on foreign currency net investments (67) - 107 ---------- ---------- ----------Total gains and losses recognised since last financial (509) (456) (765)statements ---------- ---------- ---------- MERIDIAN PETROLEUM PLC Interim Unaudited Accounts for the Six Months ended 30 June 2006 CONSOLIDATED BALANCE SHEET Half year ended Year ended 30 June 30 June 31 December 2006 2005 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000Fixed AssetsIntangible assets:Exploration costs and leases 296 719 247Tangible assets 3,058 2,147 2,940 ---------- ---------- ---------- 3,354 2,866 3,187Current AssetsDebtors 121 252 80Cash at bank and in hand 826 142 218 ---------- ---------- ---------- 947 394 298 Creditors: Amounts (203) (338) (216)falling due within one year ---------- ---------- ----------Net Current Assets 744 56 82 ---------- ---------- ----------Total Assets less Current Liabilities 4,098 2,922 3,269 ========== ========== ==========Capital and ReservesCalled up share capital 3,635 2,830 3,204Share premium 2,704 1,517 1,797Profit and loss account (2,241) (1,425) (1,732) ---------- ---------- ----------Shareholders' funds - equity 4,098 2,922 3,269 ========== ========== ========== MERIDIAN PETROLEUM PLC Interim Unaudited Accounts for the Six Months ended 30 June 2006 CONSOLIDATED CASH FLOW STATEMENT Half year ended Year ended 30 June 30 June 31 December 2006 2005 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000Net cash inflow/(outflow) from operating activities (455) (244) (599)Note 3Returns on investments and servicing of financeInterest received 7 8 12 Capital expenditure and financial investmentExploration and development expenditures (281) (364) (592) ---------- ---------- ----------Net cash inflow/(outflow) before financing (729) (600) (1,179) FinancingIssues of ordinary shares for cash 1,376 - 2,478Expenses paid in connection with share issues (39) - (381) ---------- ---------- ----------Net cash inflow from financing 1,337 - 2,097 ---------- ---------- ----------Increase/(decrease) in cash 608 (600) 742 ========== ========== ========== MERIDIAN PETROLEUM PLC Interim Unaudited Accounts for the Six Months ended 30 June 2006 Note 1 - Basis of preparation The interim accounts have been prepared in accordance with applicable accountingstandards and under the historic cost convention. The interim financial information has been prepared on the basis of theaccounting policies set out in the group's statutory accounts for the periodended 31 December 2005. The financial information set out in this interim statement, does not constitutestatutory accounts within the meaning of Section 240 of the Companies Act 1985.The financial information for the full preceding period is based on thestatutory accounts for the period ended 31 December 2005. Those accounts, onwhich the auditors issued an unqualified opinion, have been delivered to theRegistrar of Companies. Note 2 - Loss per share The loss per share is calculated based on: Half year ended Year ended 30 June 30 June 31 December 2006 2005 2005 Loss for the period (£000) (442) (456) (872) ---------- ---------- ----------Weighted average number of shares in issue (000) 69,783 56,593 59,718 ---------- ---------- ---------- Note 3 - RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATINGACTIVITIES Half year ended Year ended 30 June 30 June 31 December 2006 2005 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Operating loss (449) (464) (884)Amortisation (7) - -Depletion 101 45Write off exploration and development costs initially - - 124capitalisedGain on disposal of fixed assets - - (48)Foreign currency difference 55 - (5)(Increase)/ decrease in debtors (41) 7 179(Decrease)/increase in creditors (13) 112 (10) ---------- ---------- ----------Net cash inflow/(outflow) from operating activities (455) (244) (599) ========== ========== ========== This information is provided by RNS The company news service from the London Stock Exchange