The Company's previously reported Atlas field discoveries, the Biloxi Marshlands Nos. 6-1 and 6-2, are currently producing at a combined gross rate of approximately 39.7 mmcfe/d (net 26.1 mmcfe/d) increasing the Company?s total daily production to 82 mmcfe/d. Production from the Biloxi Marshlands No. 7-1 will add to the Company's net daily rate once placed on production. Following the completion of the Biloxi Marshlands No. 7-1 well, the Company plans to utilize the same rig to begin operations on an additional well, the Biloxi Marshlands No. 1-2, in the field that will be drilled from the same surface location to test an additional amplitude identified on the 3-D seismic survey.
The Biloxi Marshlands Project area targets the prolific Cris "I" sands which the Company believes have been under-drilled and under-exploited until recent discoveries in the area. Meridian has options and leases comprising approximately 200,000 acres in its Biloxi Marshland Project and plans to continue shooting additional 3-D seismic surveys in the area covering all of its acreage plus approximately 200,000 additional acres of state water bottoms for an approximate total of up to 500 square miles of new proprietary 3-D seismic data.
The Company further announced that its workover and completion operations at its Thibodaux No. 1 well and the Hughes No. 2 well are near completion with expectations that both wells will be on production within 20 days. Further enhancements of the Company's net daily production rate is expected from both of these wells being placed on stream during July.
Meridian maintains its exploration and exploitation focus searching for new reserves in the south Louisiana and south Texas Gulf Coast region. The Company believes that its exploration strategy will result in plays similar to its Biloxi Marshlands Project area and its Thornwell field in west Louisiana, both of which utilize 3-D seismic to identify potential hydrocarbon indicators for shallower, higher-confidence, multiple-well plays.
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