PPC.L Regulatory News (PPC)

22 Jan 2007 16:53

Meridian Petroleum PLC22 January 2007 This announcement replaces RNS number 8833P, the Operations Update from MeridianPetroleum released at 07:01am this morning. The change relates to the lease agreement executed on 15th January, the sentencewhich read: "On 15th January the Company executed a lease agreement for3,140,885 net mineral acres in Pickens County, Alabama" should have read: "On15th January the Company executed a lease agreement for 3,140.885 net mineralacres in Pickens County, Alabama." All other details remain unchanged. 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, today announces an update on its operations. Orion 36, Oakland County, Michigan Drilling began at the Orion 36 well on Saturday 20 January 2007, following therig's move on to location earlier in the week. Initially a conventional rig isbeing utilized, followed by a directional drilling unit. It is anticipated totake approximately 10 days from spudding to reach total depth, subject to anymechanical or equipment issues that may arise. The Company is examining two potential methods of dealing with the hydrogensulfide content of the gas at Orion. Both options will involve lease ofequipment for the site, rather than purchase as originally planned. Currently aconventional sulphur treatment unit is being analyzed against a closed circuitliquid system from a company located in Bryant College Station, Texas. Bothpotential systems will save a significant amount of funding, and due to theirmodular nature have the potential to be in position on site and operational inQ1 2007. Warrior Basin, Pickens County, Alabama On 15th January the Company executed a lease agreement for 3,140.885 net mineralacres in Pickens County, Alabama. This initial lease footprint will enable thecompany to develop a pilot project for the substantial CBM project that theCompany has identified in the Warrior Basin. Discussions are ongoing with a verylarge land owner for the bulk of the project acreage and as soon as thesediscussions mature the Company will update the market. The Company anticipatesthat the five- to ten-well pilot project will commence by early Q3 2007. Calvin Field, Winn Parish, Louisiana The initial field development meeting with Ensight Partners III (JV partner)took place on Tuesday 9th January in Shreveport, Louisiana. Under discussionwere the recently acquired blocks 25 and 29, both of which are 640-acre blockslocated to the NW and NE of the main acreage position. The likely route forward will initially be the exploitation of the shallowzones, followed by the deeper, more highly pressured zones, which offersubstantially greater reserve potential. Perforation, and the subsequent testand hook up of the Calvin 36 #1 well are likely to take place this month. Tony Mason, Chief Executive of Meridian Petroleum, said: "With this update,Meridian is on track with its plans for acquisition and development for 2007.With such strong progress only weeks into the New Year, we look forward to anexcellent year ahead." Ends For further information contact: Meridian Petroleum PLC Ambrian Partners Parkgreen Communications Tony Mason Neil Maclachlan / Richard Brown Justine Howarth / Erica Nelson+44 (0)20 7409 5040 +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 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. This information is provided by RNS The company news service from the London Stock Exchange