20th Jun 2006 07:00
Meridian Petroleum PLC20 June 2006 20 June 2006 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") Activity Update Meridian, the oil & gas exploration and production company with key assets in the USA and Australia, has today issued the following update on its activities. Calvin Field (67.75% NRI) Successful well test - Calvin 36 #1 On Friday, 16 June 2006, Calvin 36 #1 was successfully tested and completed with5 1/2 inch casing being set. A completion test is being filed with the State ofLouisiana. The Company is currently evaluating whether any additional work willbe required on the well prior to final hook-up, which is planned in the next fewweeks after approval of permitting filed with the State of Louisiana. Calvin 36#1 will be producing from the Sligo Petit Zone. The gas is of highquality and the gathering and process facilities are in place in the Calvinfield making transport to market very simple. Estimated production rates arebetween 0.25 to 1mmcfpd. - Calvin 5 # 31 The Company is putting together equipment and personnel for the re entry andwork over of the Calvin 5 # 31 well with a view to producing from the RodessaZone. The Company is moving forward as quickly as practicable and will keep themarket informed of progress. Orion, 80% NRI: Equipment and personal are in place for re-entering the 2.7 to 3 BCF Orion reef.Re-entry is planned in the week of 14 August 2006. A rig and a directionaldrilling unit have been booked accordingly and the Company is currently onschedule to meet the current timetable Milford 36; 25% NRI: Meridian is planning the step and drilling of lateral holes using a coiledtubing unit in August 2006. This reef has in excess of 100 feet of net pay and,after an examination of well logs and 2-D seismic by the Company and itspartners, it was felt that this course of action was the most technicallysuitable in order to increase flow rate to a higher level. This asset has beenpreviously tested and contains pipeline quality gas which can go straight intothe local pipeline without the need for additional processing. Deep Gas Rights Acquisition: The Company is in the final stages of a substantial acquisition of deep gasrights in area of significant gas production. The reserve is on shore and ontrend with some substantial production from several well known gas producers.The terms of the acquisition have been agreed, and Scott Pickford, the company'sreserve engineers, have been retained to compile a Competent Persons Report(CPR) which will indicate the gas in place (GIP) and Estimated UltimateRecoverable (EUR). Details of the reserve will be made public following thecompletion of this independent report. Subject to title opinion from the Company's lawyers, the transaction shouldclose in less than 30 days. The reserve potential is likely to be in excess of80 BCF, with the Company retaining a 70% Net Revenue Interest (NRI) in theacreage. Tony Mason, Chief Executive of Meridian, commented: "Meridian continues to make good progress in executing its business plan. TheCompany has access to significant upside in markets where products can be notonly easily taken to the market but also receive above spot market prices interms of payment. Furthermore, the smaller, producing assets provide cash flowin the short to mid term whilst the plans for the Company's larger projects arebeing executed." Don Caldwell, a certified petroleum geologist, is the Company's Qualified Person and has reviewed and approved the information in this announcement. Enquiries: Meridian Petroleum PLC (020 7409 5041)Tony Mason, Chief ExecutivePeter Fleming, Director of Finance Westhouse Securities LLP (020 7601 6100)Bill StapleRichard Morrison Citigate Dewe Rogerson (020 7638 9571)Press: Martin Jackson / George CazenoveAnalyst: Nina Soon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PPC.L