Meridian Petroleum Logs Gas Pay at Calvin Field

Meridian Petroleum says that its Calvin 36-1 well on the Calvin Field, Winn Parish Louisiana encountered a substantial gas show in the Sligo Petit Zone. The well was flowed on a limited open hole test with a 25/64 inch choke in excess of 1mmcfpd.

Based upon the analysis of previous production data from the Sligo Petit Zone, the Company anticipates the following break down of the gas and condensate mix - Carbon Dioxide 3.14% to 11.66%, Nitrogen 3.75% to 5.28%, Methane 76.97% to 83.11% and Propane 0.95% to 2.36%.

Due to the default and non consent of the original owner of the Calvin lease, Meridian's Net Revenue Interest will increase to 67.75% from 60% until a significant financial penalty is paid through the increased production revenue.

Meridian is moving ahead as quickly as possible to complete the well and commence production into the nearby pipeline.

Anthony Mason, Chief Executive of Meridian said:
"We are very pleased with the likely rich condensate content of the Calvin well which will enhance our revenue from the field. While unfortunate, the previous lease owners default increases Meridian's revenue share enabling costs to be recovered more quickly."