16th Jun 2005 14:46
Meridian Petroleum PLC16 June 2005 16 June 2005 MERIDIAN PETROLEUM PLC ("Meridian" or "the Company") Activity Update Further Progress Meridian, the oil & gas exploration and production company with key assets inthe USA and Australia, today announced the following update on its activities. Milford 36 (25% WI): Positive gas test results Gas testing of Milford 36 has concluded that the gas is of pipeline quality andcan therefore flow directly from the well head to the CMS pipeline. Meridian is at a very early stage in its evaluation of this resource. Furthertesting will be required to define its size and maximum flow rates. Given thegas test results and the significant size of the net pay section calculated fromearlier well logs, Milford has the potential to be a material addition to thecompany's reserves. Meridian will now shoot additional seismic in order tobetter define the size of the formation. The results of this quick process willdetermine the optimum means of maximizing production. Calvin (80% WI): Well soon to go into production Work is ongoing to get the well into production as soon as possible. Given thenature of the reservoir, an initial low production rate is anticipated withincreases expected after the first few months of production. It is expectedthat the well will be in production by the end of August. Emery Hudson (50% WI): Step out well planned to boost production Meridian has begun the permit work required by the State of Michigan in order tocommence a high angled step out of the existing well. As identified by 3Dseismic, the reef is approximately 110 acres in size giving the formation verysignificant hydrocarbon bearing potential. Permit work is expected to becompleted by the end of June with a view to commencing the step out well,subject to equipment availability, shortly after. The objective is to restoregas production to the 4mmscf/pd level plus associated condensate formerlyachieved. Middleton Creek (80% WI): Significant exploration potential Meridian believes that there is significant exploration potential in the lowerTuscaloosa trend. Given this potential and the high level of the Company'sownership, it we will be taking all necessary steps to develop this prospect. Brighton 36 (25% WI): Plugged and Abandoned The Brighton 36 well was plugged and abandoned after not finding commercialquantities of hydrocarbons. Australia (100% WI): Planned farm out to accelerate development Meridian is presently working on a planned farm out of part of its interest inthe Dolores prospect in the Arrowie Basin, South Australia. This would assistthe Company in accelerating development of the prospect. Dolores is locatedjust 25 kilometers from the existing Moomba - Adelaide pipeline and is believedto have significant gas potential in a market experiencing supply shortages.The Company is also carrying out geophysical work on the seismic lines over theprospect. Tony Mason, Chief Executive of Meridian, commented: "Good progress has been made in recent months and we are now close to bringingmore producing fields online, boosting our cash generation. We continue to seekacquisitions of US assets that we believe can be quickly converted into cashflow and expect to complete on one such asset in the near future." 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:
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