Biloxi Marshlands/Weeks Island, Louisian
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The Meridian Resource Corporation has its production facilities and pipeline tie-ins on the Hornets Nest prospect in the Biloxi Marsh Land ("BML") project area. Upon completion of the facility infrastructure, the Company has placed its two previously reported discoveries in the Hornets Nest area on sales. The BML No. 28-1 well was placed on sales at an initial daily flow rate of 3.1 million cubic feet of gas ("Mmcf"), 94 barrels of condensate and 62 barrels of water. Flowing tubing pressure was measured at 3,800 psi through a 12/64th-inch choke. The Company's second Hornets Nest discovery, the State Lease 18041 No. 1, was also placed on sales at an initial daily flow rate of 4.1 Mmcf of gas, 33 barrels of condensate and no accompanying water production. Flowing tubing pressure on the State Lease 18041 No. 1 well was measured at 3,820 psi through a 12/64th-inch choke. The Company has a 92% working interest in the Hornets Nest prospect. Meridian is currently drilling its third well in the immediate area and expects to drill up to 10 additional wells in the Hornets Nest area during 2005.
In addition, the Company announced current production from its fourth successful Weeks Island well drilled during 2004. The Smith Goodrich Cocke No. 10 well on the Camille prospect is currently producing 507 barrels of crude oil per day and 0.6 Mmcf of gas per day with no associated water production. Flowing tubing pressure was measured at 900 psi through a 16/64th-inch choke.