PPC.L Regulatory News (PPC)

22 Feb 2007 07:01

Meridian Petroleum PLC22 February 2007 22nd February 2007 Meridian Petroleum plc ('Meridian' or 'the Company') US Operational Update Meridian Petroleum, the oil and gas exploration and production company with keyassets in the USA and Australia, announces significant progress in connectionwith three of its US onshore properties. Orion Well The Orion 36 well ( MRP 75% net revenue interest) located in Oakland County,Michigan was flow tested on Monday 19th February. The Shut in Tubing Pressure(SITP) was approximately1,360 pounds per square inch (PSI), and the well flowedin excess of three hours on a 2 7/8 inch choke at a flowing tubing pressure ofapproximately 1,350 PSI. This would indicate a potential flow rate in excess of3-4 million cubic feet per day (mmcfpd). A bomb was dropped to gather Bottom Hole Pressure (BHP) data. It is anticipatedthat, based on flow data and reservoir response thus far, the data collectedwill be much the same as that for the original Fons and Jacobs wells.Comprehensive BHP data is expected by the end of the week. Based on all the data gathered to date, this well is considered by the Board ofMeridian to be likely to perform significantly in excess of Directors'expectations. Work will commence shortly on the construction of the HydrogenSulphide (H2S) removal system and the direct tie into the CMS Energy-operatedpipeline adjacent to the well site. Calvin 36 # 1 The Calvin 36 # 1 well (MRP 68.75% NRI) was perforated in the Sligo Petit zoneon Friday 16th February. The well was duly swabbed on Monday 19th February toremove any fluid or obstruction from the well bore. The resulting rise in SITP,and the gas kick experienced upon perforation, are highly encouraging. The Sligo Petit formation is a large low-pressure formation that generallyimproves, in terms of flow rate, as the well continues to produce. Thus far, thewell has performed in line with Directors' expectations for this formation. Afurther brief examination will be conducted to determine if this individual wellwill require any additional reservoir stimulation and, additionally, plans aremoving ahead to hook the well into the existing gathering and processing systemlocated in the Calvin Field. Milford It is anticipated that work will commence within the next 30 days on the Milford36 well (MRP 25% NRI) located in Livingston County, Michigan, and is likely totake the form of an explosive perforation designed to penetrate 15 to 20 feet onall sides of the existing well bore, within the optimal portion of the producingformation. The Company will be contracting directly with Advanced Propellants ofShreveport, Louisiana. Additionally, the Company is also likely to acquire additional working interestin this well within the next 30 days. The well has in excess of 100 feet ofpotential pay zone with reasonable permeability and porosity. Given theDolomitic nature of the formation, this ballistic approach is considered by theBoard of Meridian to likely to give desirable results. The Milford 36 well is adjacent to an existing pipeline and the hook-up isunlikely to pose any major issues. Tony Mason, Chief Executive Officer stated, "We are very pleased to provide themarket with an operational update of our US projects. We are very positive withthe results from the 2007 work programme to date and look forward to providingcontinual updates on our activities." 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. 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 Orion. Ends For further information contact: Meridian Petroleum PLC Ambrian Partners Parkgreen CommunicationsTony Mason Neil Maclachlan Victoria Thomas Richard Brown +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