Meridian Issues Ops Update
Meridian Petroleum plc on Friday issued an update on its operations.
--Calculation of well flow rate at Milford 36 to commence --Lease equipment agreements signed for Orion 36 --Field development plan to be prepared at Calvin 36
Milford 36, Livingstone County, Michigan, 25% Net Revenue Interest (NRI)
On 13th March, the Milford 36 well was re-perforated using a ballistic perforating technology previously utilized by Meridian in the Calvin 36 # 1 well in Louisiana.
The Milford well had some 1,450 pounds per square inch ("PSI") Shut in Tubing Pressure("SITP") on the morning of 13th March, indicating potentially virgin pressure from the Niagaran Reef. Due to this high pressure and the combustive nature of the gas, the well was extinguished with salt water and the perforations made at the requisite zone.
Following perforation, the well flowed back some of the fluid used to extinguish the well and, due to darkness and the frost laws in Michigan, a frac tank was filled and the water was disposed of accordingly. The well was shut in overnight and despite having in excess of 100 barrels of salt water in the formation, the SITP was 1,275 PSI, clearly indicating that good contact with the producing zone had been made and that gas pressure was of a high rate. The well flowed back the fluid at approximately 30 barrels per hour at around 150 to 175 PSI flowing tubing pressure. The recovered water weight and density all indicated that this was salt water used last year to clean the well bore. The original assessment was that this fluid had been absorbed by the formation.
Given the promising outcome of this set of perforations, the next step, likely to take place in the next week, will be the calculation of the bottom hole pressure ("BHP") and potential well flow rate. The well is located on a primary pipeline route and the gas is considered by Meridian to be of pipeline quality with no requirement for any form of processing. All steps will be taken to bring this asset on line as soon as possible. Additionally, the Company is negotiating with co owners the purchase of additional working interest.
Orion 36, Oakland County, Michigan, 75% NRI
Work has commenced on the construction of the hydrogen sulfide (H2S) removal facility on site. The Company has entered into several lease agreements for critical items of equipment in order to minimize up front capital expenditure and also to speed up the process with long lead time equipment. It is anticipated that the well should be on line before the end of June 2007.
Calvin 36, Winn Parish, Louisiana, 68.75% NRI
After recent work and positive results, the Company is now satisfied that the well is in good condition and able to produce gas on a sustainable basis. Recent swabbing of the well indicated some small obstructions around the pay zone at bottom hole, but these have since been cleared and the Company will continue to periodically swab the well in order to clear any additional obstructions that may arise.
The pressure build and the potential flow rate is as anticipated by the Directors. Detailed discussions with Smith Operating of Shreveport LA have now begun over the hook up of the well into the processing system in place at the Calvin Field and to get the gas into the local pipeline system. To this end an additional gas sample from the well will be obtained next week in order to move this process forward as rapidly as possible.
Work is continuing with Ensight 111 Energy Partners on the deep gas and it is anticipated that certain locations will be staked in the next 30 to 45 days and a field development plan finalized over the course of the next 2 to 3 months.
Australia, Dolores, 100% WI
The Native Title agreement is expected to be signed in Adelaide in April 2007.
Tony Mason, Chief Executive Officer stated, "We remain enthusiastic as to our continuing development on our US properties and look forward to updating shareholders shortly as to our activities in Australia."
Meridian is an oil and gas exploration and production company with key on-shore
assets in the United States and Australia.
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