PPC.L Regulatory News (PPC)

9 Jun 2006 07:00

Meridian Petroleum PLC09 June 2006 09 June 2006 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") OPERATIONAL UPDATE COAL BED METHANE PROSPECT Meridian, the oil & gas exploration and production Company with key assets inthe USA and Australia, today issued the following update on its Coal Bed Methane("CBM") prospect in the Black Warrior Basin, Alabama, USA. On 26 May 2006, Meridian announced the conclusions of a due diligence report byScott Pickford on its CBM prospect which indicated that the prospect areacontained multiple coals with gas content and seam thickness values consistentwith a commercially viable coalbed methane development Scott Pickford has evaluated Estimated Ultimate Recoverable ("EUR") volumeswithin a range allowing for the 75 per cent. saturation case through to the 100per cent. saturation case. This evaluation delivers an EUR range of 242.5 Bcfto 389.4 Bcf for the total prospect area of 50,000 acres. The evaluation isbased on Meridian having instigated a pilot project development area of some10,000 acres which the company is currently leasing. The full prospect leasearea is anticipated to be approximately 50,000 acres. An initial datacollection and testing programme is planned as part of the initial pilotdevelopment project which could contain up to 125 wells although it is intendedto drill only 5 - 10 test wells until the saturation uncertainty of the coalshas been resolved. Based on an average drainage area of 80 acre spacing, thefull lease area might contain up to 625 wells. Under the assumption of 75 per cent. saturation, the projected per well peak gasrate is approximately 50 mcfd, while the estimated per well 30-year cumulativegas production volume is 388 mmcf. On a fully saturated assumption, theprojected per well peak gas rate is approximately 143 mcfd, while the estimatedper well 30-year cumulative gas production volume is 623 mmcf. Mr. Tony Mason, Chief Executive of Meridian, said: "With an estimated ultimate recoverable of up to 389Bcf, the Scott Pickfordupdate further confirms our view of the very significant potential of this CBMproject. We have already begun a land leasing programme for the pilot projectand assuming its successful outcome, we will begin the overall development ofthe project. This project combined with our Australian acreage gives the company significantupside." 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 StapleRichard Morrison Citigate Dewe Rogerson (020 7638 9571)Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Nina Soon This information is provided by RNS The company news service from the London Stock Exchange