PPC.L Regulatory News (PPC)

25 Mar 2008 13:08

Meridian Petroleum PLC25 March 2008 25 March 2008 MERIDIAN PETROLEUM PLC ("Meridian" or the "Company") Update on Offer and Operations Meridian Petroleum (AIM: MRP), the US-focused oil and gas company announces thefollowing Offer and Operations update. Offer Talks Further to the announcement made on 6 February 2008 that the Company had'received early stage approaches from more than one party covering a range ofstrategic options, which may or may not lead to an offer being made for theentire issued share capital of the Company,' the Board now confirms that alldiscussions specifically relating to an offer for the Company have ceased and,as a consequence, the Company is no longer in an offer period. As highlighted in the Strategy and Operations Update of 15 February 2008, theBoard of Meridian Petroleum is actively pursuing attractive opportunities toacquire further US assets, and in addition, is considering the possibility forasset swaps with third parties. Operations Update Orion 36 The Orion 36 well in Michigan has set new daily gas production records for thewell in March. Average daily gas production up to the 23rd March was 4.21mmcfd and the wellachieved a new daily record gas flow of 4.53mmcfd. Production of natural gas liquids during the period averaged 60 bbls/day. With the well performing particularly strongly at present, the Company willdefer any planned work on the well for the time being. Milford 36 Extended testing of the Milford 36 well in Michigan is now underway. Gas flowbegan on 19 March 2008, and the well is expected to be on test for some 30 days. This well was originally drilled by the Company in 2005, and has a complexhistory including some damage to the reservoir and extensive perforation of thereservoir reef. With over 100 ft of net pay and good recorded bottom-holepressures, the Board believes there is potential in the well, but gas flow rateshave never been clearly established, primarily due to excessive waterproduction. This extended test will help to assess the commercial viability of gasproduction. There is local infrastructure available so if commerciality isproven then the Company expects a reasonably rapid and low-cost tie-in forproduction. The test will also evaluate the potential for oil and condensate productionwhich is currently uncertain. Following negotiations with the partners in the well and the operator, Meridiannow has a 30% working interest in the Milford 36 well. Stephen Gutteridge, Chairman, said: "Orion continues to perform well and provide a steady, increasing source ofrevenue for the Company. By testing Milford we are continuing with our statedplan of focusing on low-cost, quick-to-market solutions for our existing assetsand we are also making good progress with our strategy of identifying and addingother US assets with similar characteristics." Ed Childers, the Company's Chief Operating Officer, who meets the criteria of aqualified person under the AIM guidance note for mining, oil and gas companies,has reviewed and approved the technical information contained in thisannouncement. - ends - For further information contact: Meridian Petroleum Plc Stephen Gutteridge, Chairman +44 (0) 20 7811 0140 Ambrian Partners Tim Goodman +44 (0) 20 7634 4711 Parkgreen Communications Erica Nelson +44 (0) 20 7851 7480 This information is provided by RNS The company news service from the London Stock Exchange