30th Sep 2005 17:53
Meridian Petroleum PLC30 September 2005 30 SEPTEMBER 2005 MERIDIAN PETROLEUM PLC ("Meridian" or the "Company") 2005 INTERIM RESULTS CONTINUED PROGRESS IN ADDING RESERVES AND PRODUCTION Meridian Petroleum, the AIM listed (symbol: MRP) independent oil & gasexploration and production company with key assets in the USA and Australia,today announced its 2005 Interim Results. Highlights - Meridian is now majority owner of Emery Hudson from which production was temporarily stopped to allow drilling of a high angle step out well, completion of which is anticipated by mid-October - Work on Calvin completion anticipated in mid to late October, with hook up for production shortly thereafter - Milford 36 was a significant discovery of pipeline quality gas. Intention is to get the well on production as soon as possible in order to benefit from peak season gas prices - Acquisition of 10% interest in Victory 21 well in August 2005 - £750,000 raised through a secondary placing in August 2005 Anthony Mason, Chief Executive of Meridian said: The company's operations going into this last quarter of the year are wellpositioned to bring on line several key assets. Additionally, all other shortand long term plans remain on target. Enquiries: Meridian Petroleum (020 7409 5041) Tony Mason, Chief Executive Citigate Dewe Rogerson (020 7638 9571) Media: Martin Jackson / George Cazenove Analysts: Nina Soon Chief Executive Officer's Report In the six months to 30 June 2005, there has been a continuation of theCompany's progress to add reserves and production. Emery Hudson Production from Emery Hudson was stopped earlier this year in order to undertakea step out to produce from a different part of the reservoir. The Emery Hudsonreef is over 110 acres in size and 3D seismic indicates significant hydrocarbonpotential. Reefs of this nature are not always homogeneous and we haveexperienced some "compartmentalization". This high angled step is designed tocorrect that issue. We anticipate completion of this step out by the middle ofOctober. The company increased Net Revenue Interest (NRI) in this field to 53.5% and isthe majority owner. All processing and treatment facilities are in place toenable the Company to restart production from this field. Calvin Additional testing and work has been completed on the Calvin 36 # 1 well and theCompany is waiting for financial estimates on completion of this well prior tocommencing operations. The Company anticipates commencing work on the Calvincompletion in mid to late October, with hook up for production shortlythereafter. The primary issue we have faced with Calvin has been equipment and personnelavailability in Gulf area. Whilst this still remains an issue the Company isworking through this factor diligently. The Company is confident of success nowthat the testing is complete and detailed knowledge of the reservoir has beenassimilated and analyzed by our engineers. The Company owns a 60% NRI in Calvin. All processing and treatment facilities are in place for the Calvin Field. Milford 36 The discovery of Milford 36 was significant and the company will be meeting withour partners in the well to discuss in detail the technical solution goingforward in order to get the well on production as soon as possible to capitalizeon the potential for higher gas prices in the peak demand season. The gas ispipeline quality and therefore does not require any additional treatment orprocessing. The company has a 25% NRI. Victory 21 The acquisition of a small, 10% NRI in the producing well, Victory 21, willresult in a deepening of that well later this year. At the time of writing nodates are set for this well deepening but it is anticipated to take place withinthe next 90 to 120 days. Placing In August 2005, Meridian successfully raised £750,000 through an institutionalplacing. The placing proceeds will enable Meridian to complete the first phaseof its business plan and progress more reserves into meaningful cashflow. Outlook The company's operations going into this last quarter of the year are wellpositioned to bring on line several key assets. Additionally, all other shortand long term plans remain on target. The company remains dedicated to the corebusiness plan and objectives as outlined on our public listing. MERIDIAN PETROLEUM PLC Interim Unaudited Accounts for the Six Months ended 30 June 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT Half year ended Year ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Turnover Continuing operations 61 - - Acquisitions - - 356 61 - 356 Cost of sales (88) - (119) Gross profit/(loss) (28) - 237 Other operating charges (436) (340) (1,429) Operating loss: Continuing operations (464) - (397) Acquisitions - (340) (795) (464) (340) (1,192) Interest receivable 8 1 19 Loss on ordinary activitiesbefore and after taxation (456) (339) (1,173) Loss per share (pence) Note 2 (0.8) (1.0) (2.6) CONSOLIDATED BALANCE SHEET 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Fixed AssetsIntangible assets:Exploration costs and leases 719 - 577Tangible assets 2,147 1,974 2,027 2,866 1,974 2,604 Current AssetsDebtors 252 101 259Cash at bank and in hand 142 28 742 394 129 1,001 Creditors:Amountsfalling due within one year (338) (193) (226) Net Current Assets 56 (64) 775 Total Assets lessCurrent Liabilities 2,922 1,910 3,379 Capital and ReservesCalled up share capital 2,830 2,250 2,830Share premium 1,517 - 1,517Profit and loss account (1,425) (340) (968) Shareholders' funds - equity 2,922 1,910 3,379 CONSOLIDATED CASH FLOW STATEMENT Half year ended Year ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Net cash inflow/(outflow)from operating activities (244) 7 (698)Note 3 Returns on investments andservicing of financeInterest received 8 1 19 Capital expenditure andfinancial investmentExploration anddevelopment expenditures (364) (67) (763) Acquisitions and disposalsNet cash acquired withsubsidiary undertakings - 87 87 Net cash inflow/(outflow)before financing (600) 28 (1,355) FinancingIssues of ordinary shares for cash - - 2,478Expenses paid inconnection with share issues - - (381) Net cash inflowfrom financing - - 2,097 Increase/(decrease) in cash (600) 28 742 Note 1 - Basis of preparation The interim accounts have been prepared in accordance with applicable accountingstandards and under the historic cost convention. The interim financial information has been prepared on the basis of theaccounting policies set out in the group's statutory accounts for the periodended 31 December 2004. The financial information set out in this interim statement, does not constitutestatutory accounts within the meaning of Section 240 of the Companies Act 1985.The financial information for the full preceding period is based on thestatutory accounts for the period ended 31 December 2004. Those accounts, onwhich the auditors issued an unqualified opinion, have been delivered to theRegistrar of Companies. Note 2 - Loss per share The loss per share is calculated based on: Half year ended Year ended 30 June 30 June 31 December 2005 2004 2004 Loss for the period (£000) (456) (339) (1,174) Weighted average numberof shares in issue (000) 56,593 33,763 45,178 Note 3 - RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Half year ended Year ended 30 June 30 June 31 December 2005 2004 2004 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Operating loss (464) (339) (1,192) Amortisation - 15 15 Depletion 101 - 68 (Increase)/decrease in debtors 7 139 (20) Increase in creditors 112 192 225 UITF stock options charge - - 206 Net cash inflow/(outflow)from operating activities (244) 7 (698) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PPC.L