PPC.L Regulatory News (PPC)

3 Sep 2007 11:28

Meridian Petroleum PLC03 September 2007 3 September 2007 Meridian Petroleum (the 'Company') Orion 36 Production Update Meridian Petroleum (AIM: MRP), the independent oil and gas exploration andproduction company with key assets in the USA and Australia announces an updateon its Orion 36 well. As previously announced, gas sales to CMS from the Company's Orion 36 well (75%net revenue interest) commenced on 24 August at an initial rate of around2mmcfd. During the past week, the Company has been building up productiontowards our projected rate of over 5mmcfd, whilst closely monitoring wellpressures and gas quality. By mid-week, production had been increased to3.2mmcfd with Natural Gas Liquid and condensate outputs in line with ourexpectations. As output levels were being further increased late on 30th August, sensitivemonitors in the gas production system registered very minor quantities of ethyland propyl (approximately 44 parts per million combined) in the gas stream.These are benign chemicals and easily treated and removed, but as a precautionoutput was temporarily reduced to a level of 1-2mmcfd where the refrigerationprocess is able to neutralise them. A low-cost trizene filter, installeddownstream of the sulphur treatment operation, will resolve the problem, andfollowing the US Labour Day holiday on Monday 3rd September, the well will betaken briefly off-line for this to be installed. The Company expects the well tobe back on-stream later this week when the build up to over 5mmcfd will beresumed. Minor interruptions to production are common during the start-up period of a gaswell of this type, and the Company will use the opportunity of the brief shut-into further perforate the reservoir and enhance the potential for sustaining highflow levels over a longer period. Stephen Gutteridge, Chairman, said: "Although it is frustrating to take the welloff-line, we are ensuring that we operate our facility to the high standardsdemanded by the US authorities when dealing with sour gas flows. Whilst we willbe a week behind our planned production schedule, the extra perforation of thereservoir should enable us to sustain higher output rates for longer." For further information contact: Meridian Petroleum Plc Ambrian Partners Parkgreen Communications Stephen Gutteridge, Tim Goodman Simon RobinsonChairman Richard Greenfield Erica Nelson +44 (0) 20 7811 0140 +44 (0) 20 7776 6400 +44 (0) 20 7851 7480 Tony Mason, CEO +1 713 599 1611 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