Ambrian Partners has placed 16,181,900 new ordinary shares at a price of 11p per new ordinary share with institutional investors, raising £1.78 million before costs.
Application has been made for the new ordinary shares to be admitted to AIM and dealings are expected to commence on 13 June 2007. Following the placing, the number of ordinary shares in issue will be 96,430,863. The new ordinary shares will be issued under the existing authorities granted to the directors.
The funds raised will be used to continue Meridian's development and growth in three key areas:
--Ensuring the successful completion of all activities required to bring the Orion 36; Calvin 36#1 and Milford 36 gas wells into production.
--Sustaining progress with the development plans for the company's major assets: a) A test well to establish the potential of the Calvin Deep gas prospects in Louisiana (contingent reserves 58bcf* net) b) Acquisition of additional acreage at the Company's Coal Bed Methane project in Alabama and detailed planning on the pilot project (contingent reserves 240-390 bcf* net) c) Investigation of the optimum approach to drilling on the Dolores prospect in Australia (prospective reserves 432bcf* net). Possibilities under consideration include bringing a partner into the project to help with the funding and technical requirements. *RPS Scott Pickford Independent Reserve Report
--Adding technical resources to the Meridian Petroleum team and providing a solid organizational and governance platform for future growth.
Additionally, Meridian plans to release its preliminary results for the year ended December 31, 2006, on June 26, 2007.
Stephen Gutteridge, Chairman of Meridian Petroleum, said: "The funds raised from this placing will help finance the final stages of our development into production, and will enable us to plan our capital spending program to progress our larger projects in the coming months."
Meridian Petroleum plc is an oil and gas exploration and production company with key onshore assets in the United States and Australia. It is headquartered in London, with offices in Houston, Texas, and Adelaide, Australia.
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