Meridian Petroleum announces an update on its Orion 36 well in Michigan, USA, in which it has a 75% Net Revenue Interest (NRI).
The Michigan Public Service Commission (MPSC), the regulatory authority for Michigan State's oil and gas producers, has granted an initial allowable permit for an average production level of 4mmcfd for the Orion 36 well. This permit is for a period of 4 months from end December 2007.
Production levels in December were good, reaching a peak of 3.98mmcfd in mid-month. Since mid-December the Company has been assessing reservoir performance whilst sustaining a minimum wellhead pressure of 800psi. The results have been excellent with average flow rates of around 3.5mmcfd during the second half of the month and a current rate of over 3.7mmcfd.
Total production from Orion 36 in 2007 was just less than 300 million cubic feet of gas, at an average of 2.6mmcfd, and some 4250bbls of NGL.
With continued firm energy prices in the US, current daily gross revenue from Orion 36 at the end of 2007 is in excess of $32,000.
"The Orion 36 well continues to perform consistently well and we continue to gain valuable information on reservoir and operational performance," said Meridian Chairman Stephen Gutteridge. "The allowable production level in our permit supports our view that the well is potentially capable of producing at over 4mmcfd and reflects confidence in Meridian and our partners Wellmaster as producers of sour gas. We remain very aware of our responsibility for safety and the environment and will continue to invest in improvements to our operations. Since coming on-stream in August 2007 the total gas production from Orion of 300 million cubic feet with a gross value of well over $2 million is a significant achievement, and one that marks us out from most other small AIM-listed oil and gas companies."
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