PPC.L Regulatory News (PPC)

16 Mar 2007 07:01

Meridian Petroleum PLC16 March 2007 16th March 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 operations. Highlights: •Calculation of well flow rate at Milford 36 to commence •Lease equipment agreements signed for Orion 36 •Field development plan to be prepared at Calvin 36 Milford 36, Livingstone County, Michigan, 25% Net Revenue Interest (NRI) On 13th March, the Milford 36 well was re-perforated using a ballisticperforating technology previously utilized by Meridian in the Calvin 36 # 1 wellin Louisiana. The Milford well had some 1,450 pounds per square inch ("PSI") Shut in TubingPressure("SITP") on the morning of 13th March, indicating potentially virginpressure from the Niagaran Reef. Due to this high pressure and the combustivenature of the gas, the well was extinguished with salt water and theperforations made at the requisite zone. Following perforation, the well flowed back some of the fluid used to extinguishthe well and, due to darkness and the frost laws in Michigan, a frac tank wasfilled and the water was disposed of accordingly. The well was shut in overnightand despite having in excess of 100 barrels of salt water in the formation, theSITP was 1,275 PSI, clearly indicating that good contact with the producing zonehad been made and that gas pressure was of a high rate. The well flowed back thefluid at approximately 30 barrels per hour at around 150 to 175 PSI flowingtubing pressure. The recovered water weight and density all indicated that thiswas salt water used last year to clean the well bore. The original assessmentwas that this fluid had been absorbed by the formation. Given the promising outcome of this set of perforations, the next step, likelyto take place in the next week, will be the calculation of the bottom holepressure ("BHP") and potential well flow rate. The well is located on a primarypipeline route and the gas is considered by Meridian to be of pipeline qualitywith no requirement for any form of processing. All steps will be taken to bringthis asset on line as soon as possible. Additionally, the Company is negotiatingwith co owners the purchase of additional working interest. Orion 36, Oakland County, Michigan, 75% NRI Work has commenced on the construction of the hydrogen sulphide (H2S) removalfacility on site. The Company has entered into several lease agreements forcritical items of equipment in order to minimize up front capital expenditureand also to speed up the process with long lead time equipment. It isanticipated that the well should be on line before the end of June 2007. Calvin 36, Winn Parish, Louisiana, 68.75% NRI After recent work and positive results, the Company is now satisfied that thewell is in good condition and able to produce gas on a sustainable basis. Recentswabbing of the well indicated some small obstructions around the pay zone atbottom hole, but these have since been cleared and the Company will continue toperiodically swab the well in order to clear any additional obstructions thatmay arise. The pressure build and the potential flow rate is as anticipated by theDirectors. Detailed discussions with Smith Operating of Shreveport LA havenow begun over the hook up of the well into the processing system in place atthe Calvin Field and to get the gas into the local pipeline system. To this endan additional gas sample from the well will be obtained next week in order tomove this process forward as rapidly as possible. Work is continuing with Ensight 111 Energy Partners on the deep gas and it isanticipated that certain locations will be staked in the next 30 to 45 days anda field development plan finalized over the course of the next 2 to 3 months. Australia, Dolores, 100% WI The Native Title agreement is expected to be signed in Adelaide in April 2007. Tony Mason, Chief Executive Officer stated, "We remain enthusiastic as to ourcontinuing development on our US properties and look forward to updatingshareholders shortly as to our activities in Australia." John Randell who works for Wellmaster LLC, is an independent contractor whomeets the criteria of a qualified person under the AIM guidance note for mining,oil and gas companies, has reviewed and approved the technical informationcontained in this announcement with respect to Orion and Milford. Art Davies who works for West Mountain Operating, Inc. is an independentcontractor who meets the criteria of a qualified person under the AIM guidancenote for mining, oil and gas companies, has reviewed and approved the technicalinformation contained in this announcement with respect to Calvin. 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