Meridian Petroleum announced that its subsidiary, Meridian Resources USA Inc, has entered into a purchase and sale agreement to acquire interests in the East Lake Verret (ELV) Field in South Louisiana, USA from Rozel Energy II L.L.C. The Acquisition is conditional upon the Company obtaining financing for the deal, and a conditional Commitment Letter with Macquarie Bank Limited (MBL) for a $50 million debt facility has been signed to finance the Acquisition and for further developments and acquisitions.
Highlights of the Acquisition:
Meridian to acquire 60% of Rozel's working and net revenue interest in, and the operatorship of:
Current production levels from 6 producing wells (net to Meridian) of:
Highlights of the Debt Facility:
The Facility is to be made available in 3 tranches;
"The acquisition of the interests in the ELV field fits directly into the Company's clearly stated strategy of acquiring US assets which are in production or can be brought into production relatively quickly," said Chairman Stephen Gutteridge. "The production profile of ELV diversifies the Company's cash-flow away from dependence on the Orion well; adds high value crude oil production and increased gas production; and extends the group's positive operating cash-flow position into the future. Our partnership with Macquarie and the availability of the Debt facility will allow the group to continue to aggressively develop and add further US assets, move forward with larger projects such as the Australian licenses, and create the potential for corporate acquisitions."
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