PPC.L Regulatory News (PPC)

30 Apr 2007 07:03

Meridian Petroleum PLC30 April 2007 30th April 2007 Meridian Petroleum plc ('Meridian' or the 'Company') Operations Update Meridian Petroleum, the oil and gas exploration and production company with keyassets in the USA and Australia provides an update on its primary projects andongoing operations. Orion; Oakland County Michigan, 70% NRI The construction of the surface facilities and the desulphurization units iscontinuing on schedule, with the concrete now being laid and the sulphur treattowers to be positioned shortly. At this stage the Company has not been delayedby any critical path item and is continuing to move the project forward asrapidly as possible. The Company anticipates the completion of these facilitiesby the end of June 2007. The flow rate from the well is anticipated to be atleast 2mmcfpd net to the Company. Calvin 36 # 1; Winn Parish Louisiana, 68.75% NRI A final Nitrogen wash of the well is scheduled for the week of 30 April in orderto clean the well bore comprehensively and not damage the producing reservoirzone. Once this is completed, work on hooking up the well will commence.Discussions are ongoing with Smith Operating Co, the field operator on the costof transportation and processing of the gas. As the gas contains CO2, it willrequire some processing. A processing facility already exists in the Calvinfield a short distance from the 36 #1 well location. The anticipated productionrate is likely to be initially around 0.5mmcfpd net to the Company and thenrising over time as is the trend in this zone in the Calvin field. The Company has been involved in a legal dispute with Brammer Engineering, theformer engineering contractor and nominated operator for the 36 #1 well. Anaudit was conducted of the Brammer books and it was discovered that Brammer hadover-billed Meridian by some $89,953.22. These funds have been returned toMeridian, as of Thursday 26 April, through the legal action. Additionally the Company is currently seeking all legal and accounting costs tobe covered by Brammer. The Board will inform the market as events develop.. TheCompany has undertaken additional engineering with a new contractor, WestMountain Operating, Marshall TX. Milford 36 (JARCO), Oakland County Michigan, 25% NRI The well responded extremely well to the use of an explosive perforation devicein the lower zone. The well has approximately 103 feet of net pay zone with goodporosity. The Company plans to utilise the same explosive perforation for theupper zone to pull the prospective production rate to approximately 0.25mmcf/pdnet to Meridian. The Company is now putting that work in place and additionallyis likely to purchase additional working interest in this well from co owners.The Company is reviewing the logistics involved (the Explosive PerforationCompany is based in Shreveport Louisiana) and all efforts are being made tocomplete the additional perforations as soon as is possible. Given therelatively low cost of the perforations it is felt by the Company that thisapproach is the most prudent and that a far better producing well will resultfrom this treatment. CBM, Warrior Basin Alabama Work is ongoing to compile the budget and equipment for a five (5) well pilotprogramme which will likely take place in Q4 2007 or early Q1 2008. Inaddition, detailed discussions are taking place with a major land owner in thearea for the lease, on a royalty basis, for a substantial portion of the projectarea. Calvin Deep Work is ongoing with Ensight Partners in Shreveport Louisiana for the drillingof a deep test well to gain production from the Terryville A and B sands. A testwell location has been selected and the second issue of looking at the potentialre-entry of existing well bores and the possibility of fraccing is also beingexamined. Once a decision has been made as to the approach to this initial wellwe will inform the market accordingly, althought we are targeting Q3 2007 forthe staking of prospective locations. Australia The Company has retained an Adelaide-based geological and operating consultantgroup to commence work on the preparation of the test well for the Doloresprospect and to examine additional prospectivity of the PEL 82 acreage alsoowned by the Company. The Company anticipates commencing work on the test wellduring Q4 2007. It should also be noted that the Company is in early stage discussions foreither the sale or farm out of a portion of the Dolores prospect and otherAustralian acreage. Ends For further information contact: Meridian Petroleum PLC Ambrian Partners Parkgreen CommunicationsTony Mason Neil Maclachlan Victoria Thomas+44 (0)20 7409 7233 +44 (0)20 7776 6400 +44 (0)20 7851 7480 Notes to Editors About Meridian Meridian is an oil and gas exploration and production company with key on-shoreassets in the United States and Australia. Meridian is quoted on the AIM marketof the London Stock Exchange (ticker: MRP), and is headquartered in London, withoffices in Houston, Texas and Adelaide, Australia. This information is provided by RNS The company news service from the London Stock Exchange