Biloxi Marshlands No. 24-1 Well Finds Gas

The Meridian Resource Corporation revealed results from its Biloxi Marshlands ("BML") No. 24-1 well at the Oars Deep prospect area. Electric log analysis reflected apparent gas pay in two separate sands, the Cris "I" and the Big hum sand intervals. The well was recently tested from the Cris "I" sand interval, the deeper of the two sand intervals, through 12 feet of perforations between a gross pay interval of 9,600 feet and 9,642 feet MD at a stabilized gross daily flow rate of 8.3 million cubic feet ("Mmcf") of gas per day through a 22/64-inch choke. Flowing tubing pressure was measured at 2,674 psi and shut-in tubing pressure was measured at 3,032 psi. The well was placed on production on June 18, 2004, at approximately 5.7 Mmcf per day through a 13/64-inch choke with a flowing tubing pressure of 2,900 psi. The Company owns a 92% working interest in the well.

The Company has mobilized the drilling rig from the BML No. 24-1 location to the BML No. 25-1 location on the Oars South prospect. The well is currently drilling at approximately 9,200 feet and will be drilled to a total depth of approximately 9,900 feet MD. Drilling operations on the well are expected to be completed within the next two weeks. The Company holds a 92% working interest in the well.

The Ducros et al No. 32-1 well at the Company's Apollo prospect was logged following drilling operations with approximately 66 feet of apparent net gas pay between 11,495 feet and 11,642 feet MD. During completion operations, prior to perforating the well, a wireline gauge tool lodged in the production string. Fishing operations were conducted removing approximately half of the wireline within 4,000 feet of the target sand. Operations to either recover the remainder of the wireline and gauge tool or sidetrack the well at or about 7,500 feet MD will be pursued without loss or damage to the pay sand or delays in the pipeline tie-in.

In the Weeks Island field, the Company successfully drilled and is currently testing the Goodrich Cocke #3 well on its Pink Floyd prospect. The well was drilled to a total depth of 8,094 feet MD and logged approximately 120 feet of net oil pay between 7,824 feet and 7,976 feet MD. The well was tested at rates of up to 970 barrels of oil per day and will be placed on production in several days at the field allowable rate of 800 barrels of oil per day. The drilling rig used on the Goodrich Cocke #3 well has been mobilized to Smith Goodrich Cocke #10 well ("SGC#10") on the Company's Camille prospect. The SGC#10 well was spud and is currently drilling at 1,400 feet and will be drilled to a total depth of approximately 11,700 feet MD. Drilling operations are expected to take approximately 35 days.

The Company is currently underway with the construction of a seven mile pipeline and gathering system to the southern extension of its acreage position in the BML project area. The pipeline is expected to serve the Company's Ducros et al No. 32-1 well, the BML 22/SL 17980 #1 well and future wells in the field. Construction of the pipeline is expected to be complete during the third quarter of 2004 at which time the Company will be able to place a number of its currently drilled and logged or tested wells on production, as well as any additional successful wells drilled prior to completion of the pipeline.

During May, the Company completed its 2004 3-D seismic acquisition program including 264 miles of additional data in the BML project area and is currently processing the data and merging it into its existing data set. Processing of the data is expected to be completed during the third quarter of 2004 and is expected to be the basis for the fourth quarter 2004 and the 2005 drilling program in the BML project area. Additionally, the Company was recently awarded successful bids on two tracts comprising 801 acres at the Louisiana State Lease Sale, which will, in part, form the leasehold position for five additional drill sites.

Additionally, the Company has recently completed drilling and logging operations on its BML No. 27-1 well on its Eros Deep prospect and encountered no commercial hydrocarbons. Meridian has now drilled 12 wells in the BML project area since its inception and has encountered gas pay in 9 wells with 3 dry holes, representing a success rate of 75%. The Company is currently mobilizing the drilling rig from the BML No. 27-1 location to drill its BML No. 7-2 well on the Atlas South prospect. The well will be drilled to a total depth of approximately 9,200 feet and is expected to take approximately 30 days to drill.