Meridian Drills Second Successful Well in NW Area of Biloxi Marsh Lands
The Meridian Resource Corporation reports its second successful exploration well in the northeast quadrant of its Biloxi Marsh Lands ("BML") play area with initial test results from the SL 18307 #1 well on its Gato del Sol prospect. The well was drilled to approximately 7,800 feet measured depth ("MD") and logged gas pay in two separate Cris I sand intervals for a total of approximately 65 feet of net pay in the formation. The well was tested in the lower Cris I sand interval through five feet of perforations at rates up to a gross daily rate of 7 million cubic feet of gas ("Mmcf/d," 4.5 net) before shutting the well in for tie-in to production and pipeline facilities. Flowing tubing pressure was measured at 2,025 psi on a 23/64ths inch choke and shut-in tubing pressure was measured at 2,500 psi. The Company owns a 92% working interest in the well and is the operator. Production from the well is expected to begin in the first quarter of 2006.
The Company also participated in an outside operated well near the Thornwell field in Jefferson Davis Parish. The well was drilled to a depth of approximately 11,900 feet, and logged 93 feet of pay in the Bol perc sand. The well was tested into the sales line at a rate of up to approximately 10 Mmcf/d and 300 barrels of oil (1 Mmcfe/d net) on a 17/64ths inch choke and at a flowing tubing pressure of 7,000 psi and shut-in tubing pressure of 7,300 psi. The Company owns approximately 13% working interest in the well.
The previously announced CL&F E-1 well on the Turtle Shell prospect was recently tied-in to production facilities and is producing at a gross daily production rate of approximately 2 Mmcf/d (1.2 Mmcf/d net). Additionally, production has resumed on the SL 18041 #1 well at the Company's Hornets Nest facility in the south central section of the BML project area. Production at this facility was shut-in due to damage caused by Hurricane Katrina in late August. The Company recently brought the well back online at a gross daily rate of 3.2 Mmcf/d (2.3 Mmcf/d net).
The String of Pearls facility has been fully repaired and is ready to go on line pending the completion of repairs to facilities owned by a third party pipeline operator. Work is ongoing at the Bayou Gentilly well facilities, where the Company is evaluating it alternatives for placing the well online due to storm related damage to nearby third party operator facilities. This well was tested from the geo-pressured Cris I sand interval at a gross daily flow rate as high as 5.9 Mmcf/d and 654 barrels of condensate.
In other developments, the Company had previously announced that it was waiting on two rigs that had been contracted for its East Texas Woodbine project. The Company recently secured a third rig for the area. The Company has three locations prepared, and is waiting for the arrival of the three rigs which are secured for various contractual lengths. Drilling on the first well in this area could begin by year's end or early first quarter. Additionally, the Company's contracted Coastal Rig 20, which is in dry dock for storm related repairs, was previously expected to return to service in mid to late December. However, it is now not expected until early in the first quarter of next year when it will resume the Company's exploration program in the BML area.
The Company drilled its Avoca 4-1 well located on the Bayou Lawrence prospect to a depth of approximately 10,800 feet MD for a Big Hum 1 and Big Hum 2 sand test. Both of the targeted Big Hum sands were encountered at approximately 10,300 feet and 10,600 feet respectively, and were logged. Results from the log indicated that one of the targeted sands did contain hydrocarbons, but not in commercial quantities; and the second sand was wet. The well was subsequently plugged and abandoned. Additionally, the Company drilled its CL&F G-1 well located on the North Tortuga prospect to a depth of approximately 11,700 feet MD for a Z-2 sand test. The targeted Z-2 sand was encountered at approximately 11,500 feet and was logged. Results from the log indicated that one of the targeted sand intervals did contain hydrocarbons, but not in commercial quantities; and a second sand interval was wet. The well was subsequently plugged and abandoned. The rig utilized for this well was mobilized to drill the CL&F F-1 well on the Company's Turtle Bisque prospect located several miles to the east in the Ramos Complex area. The well will target the "AA" sand interval and have a total depth of approximately 13,400 feet MD. The well is currently at approximately 2,700 feet.
The Company recently exercised its right to lease additional acreage under its lease option agreement with Biloxi Marshland Corporation and Lake Eugene Land and Development Corporation in the BML area. The leases were acquired under the terms of the previously negotiated agreement which began in 2001 and expired on December 15, 2005. Leases previously acquired under the lease option agreement will remain in place for the contracted term and conditions. Any new leases requested by the Company from Biloxi Marshland Corporation and Lake Eugene Land and Development Corporation will be subject to new terms and conditions. Additionally, the Company successfully bid on four leases in the State of Louisiana lease sales in the BML project area for a total of approximately 1,600 acres.
Re-cap of Data - Below is a re-capitulation of the operations affecting production discussed in this press release:
- Gato del Sol well tested at 7 Mmcf/d (4.5 net), production in Q1-06
- Outside operated well tested into sales at 11.8 Mmcfe/d (1 net)
- Turtle Shell well online at 2 Mmcf/d (1.2 net)
- Hornets Nest production resumed at 3.2 Mmcf/d (2.3 net)
- String of Pearls repairs completed, waiting on third party operators, early Q1-06 (4 Mmcf/d gross, 2.6 net)
- Bayou Gentilly, evaluating alternatives for facility tie-in (tested 9.8 Mmcfe/d gross, 6.4 net)
- East Texas project ready, waiting on rigs
- Coastal Rig #20 repairs on track, expect to be back in service in early Q1-06
- Bayou Lawrence prospect (Avoca 4-1) drilled resulting in an uneconomic well
- North Tortuga prospect (CL&F G-1) drilled resulting in an uneconomic well
- CL&F F-1 well at Turtle Bisque prospect drilling for "AA" sand currently at 2,700 feet
- Leases acquired under BML area lease option agreement, and State lease sale
- Alta Mesa Holdings to Acquire Meridian Resource Corp. (Dec 23)
- Meridian Resource Posts 3Q Operating Results for 2009 (Nov 09)
- Meridian Turns on Taps at Weeks Bay No. 15 Well in Iberia Parish (May 27)