The Meridian Resource Corp. plans to develop its Biloxi Marshlands project comprising an overall area of approximately 400,000 acres located in St. Bernard Parish, La. The development will begin with the drilling of the Biloxi Marshlands #6-2 well, which is scheduled to spud this quarter. Four additional wells, as well as the continuation of the 3-D seismic program, are scheduled for the Biloxi project as part of the Company's exploration and development program for the 2003 calendar year. Based on the analogs and data analyzed to date, Meridian expects to focus the majority of the 2003 capital spending program in this region on the exploitation and development of a series of low risk, shallow and primarily natural gas prospects for the near term growth of the Company's reserves and production.
The Biloxi Marshlands #6-1 well was placed on production on March 15, 2003 and is currently producing in excess of 11,000 Mcf of gas per day. Meridian operates the Biloxi Marshland acreage and owns a 93% working interest (65.5% net revenue interest) in the project area and operates the field.