PPC.L Regulatory News (PPC)

14 Feb 2006 15:16

Meridian Petroleum PLC14 February 2006 14 February 2006 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") ORION LEASE SIGNED Meridian Petroleum (AIM: MRP), the oil & gas company with key assets in the USAand Australia, today announces that it has signed a lease on the Orion field(100% Working Interest) located in Oakland County, Michigan. Based on data from earlier wells, the lease contains a proven and probable shutin reserve of 3 BCF of gas in place with approximately 2.7 BCF recoverable.The gas content is pipeline quality after treatment and also containscondensate. The Niagaran reef was previously drilled in the late 1980's and early 1990's butwas shut in due to hydrogen sulphide emissions and the absence of appropriatetreatment technologies. Meridian's proposed use of "sulphur treat" towers, atechnology now widely used for this type of gas treatment has been accepted bythe Michigan Department of Environmental Quality (DEQ). Flow rates on the previous wells averaged between 2 to 4 mmcf per day pluscondensate and Meridian anticipates achieving similar flow rates from itsproposed new well location. The bottom hole location of the new well will remainthe same as the previous wells but will be accessed from the surface via adirectional drilling leg. The proposed new well location is on a partially used asphalt pit adjacent to amajor gas pipeline. Anthony Mason, Chief Executive of Meridian said: "We are delighted to have signed up this significant shut in gas reserve inMichigan State. Subject to permitting and equipment availability, we expect tobegin drilling operations early in the second quarter of this year." Enquiries: Meridian Petroleum (020 7409 5041)Tony Mason, Chief Executive Westhouse Securities (020 7601 6100)Richard Morrison Citigate Dewe Rogerson (020 7638 9571)Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Nina Soon This information is provided by RNS The company news service from the London Stock Exchange