PPC.L Regulatory News (PPC)

7 Nov 2006 10:37

Meridian Petroleum PLC07 November 2006 Meridian Petroleum plc ("Meridian" or the "Company") Conclusion of Amended Australian Native Title Agreement Meridian Petroleum plc (AIM: MRP) the oil and gas exploration and productioncompany with assets in the United States and Australia, announces the conclusionof the amended agreement with regard to the Company's Australian PELA 132licence Native Title Claim ("the Agreement"). The amended terms of the Agreement following the announcement on July 24th 2006are as follows: - A signature payment of AU$60,000 - A first year administration fee of AU$15,000 - An annual 1% royalty of production - Administrative fees over the life of PELA 132 to be capped at AU£125,000 Having been agreed by the State and the governing body ATLA, the Agreement isnow being circulated to the nine native title signatories under the Agreement,with the process expected to take up to three weeks. Following this theAgreement will be returned to the State for signature with completion onMeridian's signature, date to be announced, but expected before year end. Atthat time a formal ceremony with the Australian Minister of Mines and Energywill be held. As part of the Agreement, Meridian has agreed that if it enters a productionsituation, the Company will endeavour to support the local community healthprogrammes for the Adnyamathana, the local indigenous people who inhabit theFlinders Ranges. Initial support programmes will include the establishment of adialysis clinic within the area. The Agreement with Meridian is the first petroleum agreement ever signed off bythe Adnyamathana people. Commenting on the Agreement, Tony Mason, CEO, Meridianstated, "The Agreement is substantial as it frees the Company to conductoperations on the Dolores prospect, which is located some 40 Km from the Moomba/Adelaide pipeline and which we believe to be a highly commercial prospect. "We are also commencing detailed analysis of the prospectivity within ouroverall acreage position in order to identify and develop additional prospects.This will include detailed seismic review and reprocessing of certain areas plusAVO analysis in some cases in order to fully develop the prospect." PELA 132 covers an area within the Arrowie Basin onshore South Australia andcontains the Company's Dolores Prospect, located 40km from the existing Moombato Adelaide gas pipeline which links the Cooper Basin gas fields to SouthAustralian gas consumers. Meridian holds a 100% interest in the DoloresProspect and plans to commence operations in Q1 2007 with a test well. ENDS For further information contact: Meridian Petroleum Plc Ambrian Partners Parkgreen Communications Tony Mason Neil Mac Lachlan Simon Robinson Richard Brown Victoria Thomas00 1 713-599-1611 +44 (0) 20 7776 6400 +44 (0) 20 7493 3713 Notes to Editors About Meridian Meridian is an oil and gas exploration and production company with key assets inthe United States and Australia. Meridian is quoted on the AIM market of theLondon Stock Exchange (ticker: MRP), and is headquartered in London, withoffices in Houston, Texas and Adelaide, Australia. In May this year, Meridian announced the results of Scott Pickford evaluation ofthe Delores Prospect which assigned a "best estimate" gas-in-place of 547 Bcfand an estimated P50 gas recoverable of 432Bcf. This information is provided by RNS The company news service from the London Stock Exchange