PPC.L Regulatory News (PPC)

23 Apr 2008 15:01

Meridian Petroleum PLC23 April 2008 23 April 2008 MERIDIAN PETROLEUM plc ("Meridian" or the "Company") Operations Update Meridian Petroleum (AIM: MRP), the US-focused oil and gas exploration andproduction company today announces the following update on its operations. Milford 36 (MRP Working Interest 30%) The extended testing of the Milford 36 well in Michigan has now been completedand the results analysed. The key conclusions from the test are: •The high levels of water in the well were successfully pumped off after a few days of production, and it has been confirmed that the water was not native to the reservoir formation •Gas production initially produced rates of 150-200mcfd but stabilised at 80mcfd •Oil shows were negligible on this test, despite previous tests having significant oil shows, The test data has been reviewed with local Michigan geologists and the generalconsensus is that the oil seen previously may be coming from slightly deeperlevels in the formation, and that there remains a possibility of a commercialoil-well. Whilst the test equipment is on site, it is planned to open up a further 10 feetof pay and acidise the well over a perforated interval of 35 feet. The Companyhas assessed the probability of a commercial well as being less than 50/50, butas the cost to the Company is a relatively low $25,000, believes this additionalwork is worthwhile. Orion 36 (MRP current net revenue interest 72.8%) Following a period of very strong production in March and April, and asuccessful change-out of the Sulfatreat material earlier this month, the Companyhas decided to proceed with the acidisation of the well this week. Although there was a slight reduction in flow-rates during the change-out,Meridian has once again experienced very little downtime so far in April,continuing the excellent performance of the well. Daily production of gas duringthe first 20 days of April averaged 3.85 mmcfd with over 1000 bbls of naturalgas liquids produced. Ed Childers, the Company's Chief Operating Officer, who meets the criteria of aqualified person under the AIM guidance note for mining and oil and gascompanies, has reviewed and approved the technical information contained in thisannouncement. - ends - For further information contact: Meridian Petroleum PlcStephen Gutteridge, Chairman+44 (0) 20 7811 0140 Ambrian PartnersTim Goodman+44 (0) 20 7634 4711 Parkgreen CommunicationsErica Nelson+44 (0) 20 7851 7480 This information is provided by RNS The company news service from the London Stock Exchange