PPC.L Regulatory News (PPC)

16 Aug 2007 07:00

Meridian Petroleum PLC16 August 2007 16 August 2007 MERIDIAN PETROLEUM PLC("Meridian" or the "Company") Production Commences at Orion Field Meridian Petroleum (AIM: MRP), the independent oil and gas exploration andproduction company with key assets in the USA and Australia announces thatproduction of gas has commenced at its Orion 36 well in the Orion Field,Michigan. Surface facilities and tie in to CMS, the local utility company, have beencompleted as per the Company's contractual obligation with CMS. The next 48hours will be spent testing the facility with gas from the reservoir andcommercial production will commence by the end of the week, following completionof required tests. The Company does not foresee any issues with the testingcycle, and will update the market shortly with the commercial flow rates and theallowable flow rates mandated by the State of Michigan. Based upon bottom holepressure and other key technical indicators received to date, the Directorsanticipate that the flow rates plus Natural Gas Liquids (NGL) and Condensateproduction is expected to be in line with the initial projections as given tothe market previously. The gas produced from the well will be sold to CMS, at approximately Henry Hubplus with a mmbtu (millions of British Thermal Units) adjustment. Sales willcommence at the end of the week following the live testing of the refrigerationsystem which requires live gas from the reservoir to fully test the systemfully. The Company is using the SulfaTreat process to remove the hydrogensulphide from the gas, at a cost of approximately USD 0.45/mcf. Tony Mason, CEO of Meridian Petroleum, said: "The news from Orion is excellentgiven the short time it has taken to get the project to this stage, having onlystarted drilling the well in January of this year. While we recognise that the H2S removal is expensive, it is economically viable considering the high levelUS gas prices have sustained for some time now." John Randell, who works for Wellmaster, Inc., is an independent contractor whomeets the criteria of a qualified person under the AIM guidance note formining, oil and gas companies, has reviewed and approved the technicalinformation contained in this announcement with respect to Orion.- ends - For further information contact: Meridian Petroleum Plc Ambrian Partners Parkgreen CommunicationsStephen Gutteridge, Chairman Neil Maclachlan Simon Robinson+44 (0) 20 7811 0140 Tim Goodman Erica NelsonTony Mason, CEO +44 (0) 20 7776 6400 +44 (0) 20 7851 7480+1 713 599 1611 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