Meridian Tests 10th Successful Well at Biloxi Marshlands

The Meridian Resource Corporation reports results from its Biloxi Marshlands ("BML") No. 7-2 well at the South Atlas prospect area. Electric log analysis reflected approximately 70 feet of gross gas pay (64 feet net) in the Cris "I" sand interval between 9,033 feet and 9,103 feet measured depth ("MD"). The well was recently tested through 10 feet of perforations at a stabilized gross daily flow rate of 13.3 million cubic feet ("Mmcf") of gas per day through a 30/64-inch choke. Flowing tubing pressure was measured at 3,134 psi and shut-in tubing pressure was measured at 3,688 psi. The well is expected to be placed on production during August 2004 after completion of the pipeline and facility tie-ins. The Company owns a 92% working interest in the well.

The Company is mobilizing the drilling rig from the BML No. 7-2 location to the BML No. 7-3 location on the Pluto prospect. The well is expected to spud in the next several days. Drilling operations on the BML No. 7-3 are expected to be completed within 30 days. The Company holds a 92% working interest in this well also.

The Ducros et al No. 32-1 well at the Company's Apollo prospect was logged following drilling operations with approximately 66 feet of apparent net gas pay between 11,495 feet and 11,642 feet MD. During completion operations, prior to perforating the well, a wireline gauge tool lodged in the production string. The Company has sidetracked the well past the obstruction and the well is currently drilling at 9,300 feet MD. The well is expected to reach total depth and be ready to place on production commensurate with the completion of the pipeline and production facilities during August 2004. The Company holds a 92% working interest in the well.

The Company recently began construction of a seven-mile pipeline and gathering system to the southern extension of its acreage position in the BML project area. Approximately 5 miles of pipeline have been laid and the Company expects the remaining 2 miles to be complete before the end of August 2004. The Company is currently constructing a satellite production facility to accommodate production from the Ducros et al No. 32-1 well (Apollo prospect) and the BML 22/SL 17980 #1 well (Eros prospect). In addition, the Company is permitting and will construct an additional facility to serve the BML No. 7-2 well (South Atlas prospect) and any future wells surrounding the BML No. 7-2 well. The Company expects to place the aforementioned wells and any further discoveries in the surrounding area on production by early September 2004. Production tests from the BML 22/SL 17980#1 well and the BML No. 7-2 totaled a combined gross rate of 22.6 Mmcf per day and the Ducros et al No. 32-1 well is expected to test within the next three weeks. On June 30, 2004, the Company's daily production was approximately 100 Mmcfe per day not including the three wells set out above.

During July 2004, the Company began drilling the Hosemann #1 well on the Enterprise prospect. The well is being drilled to a proposed total depth of 18,500 feet and is currently drilling at 3,600 feet. The Company is non-operator of the well and after payout of the drilling costs the Company's working interest is approximately 30%.

In the Weeks Island field, the Company is drilling its Goodrich Cocke #10 well on the Camille prospect. The well is being drilled to a total depth of approximately 11,700 feet MD and is currently at approximately 10,000 feet. The well is expected to reach total depth within the next 15 days. The Company holds a 97% working interest in the well.

As previously announced, the Company's drilling program for 2004 includes plans to drill 15 - 20 wells in the BML project area. In May 2004, the Company began utilizing two drilling rigs in the BML project area, and the wells drilled to date have averaged approximately 30 days to drill and complete. In addition, the Company's 2004 drilling program includes plans to drill up to 12 additional wells utilizing our inventory of over 8,000 square miles of 3-D seismic data. These include five wells at Weeks Island, up to three wells at Riceville and up to two wells in the Turtle Bayou field area.
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