Meridian Petroleum in Share Placing to Raise Funds for Field Development
Meridian Petroleum has successfully completed an institutional placing of new Ordinary Shares in the Company.
Ambrian Partners has placed 6,944,444 new Ordinary Shares at a price of 18p per new Ordinary Share with institutional investors, raising £1.25 million before costs.
The funds raised will be used to complete the work program on the development of the Calvin Field with work scheduled on the 36 #1 well in January and a full field development study due to be implemented in January to develop both the deep and shallow rights. The Company is finalizing a lease acquisition of 2 additional lease blocks in excess of 2,000 acres in the Calvin Field which will add additional reserves to the asset base.
Additionally, the Company is due to drill the Orion well in Michigan with work commencing in January. Further lease work will also go ahead on the CBM project in the Warrior Basin in Alabama and the finalization of the Australian Native Title agreement for the Dolores resource is anticipated in early 2007.
Application has been made for the new Ordinary Shares to be admitted to AIM and dealings are expected to commence on December 20, 2006. Following the placing, the number of Ordinary Shares in issue will be 79,649,063. The new Ordinary Shares will be issued under the existing authorities granted to the Directors.
Tony Mason, Chief Executive of Meridian Petroleum, said: 'This fundraising enables us to accelerate the work on the Calvin field and other projects. With next month's development study we will be able to assess the full scale of the deep and shallow reserves at Calvin and plan a drilling program accordingly.'
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