PPC.L Regulatory News (PPC)

29 Jul 2005 07:00

Meridian Petroleum PLC29 July 2005 29 July 2005 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") Operational update: Milford 36 well Meridian Petroleum, the oil & gas exploration and production company with keyassets in the USA and Australia, today announces that the Milford 36 welllocated in the Southern Reef Trend in the Michigan Basin is an importanthydrocarbon discovery. The well reached total depth on 19 May 2005 and has sincebeen shut in order for the Company to receive required equipment for optimalcompletion. Further to the press release dated 19 May 2005, the log indicates a gross payzone of 104 feet and a net pay zone of 84 feet with porosity of between 6 and 9%which is higher than the average for the region. This indicates a significantNiagaran reef and the Company is shooting additional seismic in order to definethe precise shape and size of the reef. Upon completion and interpretation of the seismic coverage Meridian will use acoiled tubing unit and drill high conductivity perforations in the pay zone.This technique will enable the Company to penetrate 8-10 feet into the reservoirand therefore optimise recovery and flow rate. Meridian anticipates that the equipment required will be in place by the end ofAugust 2005 and the operations outlined above will take several working days tocomplete. The current shut-in pressure on the well is high at in excess of 1,600lbs and the gas tested indicated high BTU pipeline quality gas. The Company will also be conducting some additional work on its Emery Hudsonwell in mid to late August. An announcement giving details will be made at thattime. Tony Mason, Chief Executive, Meridian Petroleum, commented: "Milford is an important hydrocarbon discovery and by taking this technicalapproach, we will be able to optimise reservoir performance and maximise theeconomic potential of this excellent asset." Enquiries: Meridian Petroleum PLC (020 7409 5040)Tony Mason, Chief ExecutivePeter Fleming, Director of Finance Westhouse Securities LLP (020 7601 6100)Bill StapleRichard Morrison Citigate Dewe Rogerson (020 7638 9571)Press: George CazenoveAnalyst: Nina Soon This information is provided by RNS The company news service from the London Stock Exchange