Meridian Resource Reaches Total Depth with Biloxi Well
The Meridian Resource Corporation reports that the Biloxi Marshlands 6-1 well at its Biloxi Marshland Project area has reached total measured depth ("MD") of 11,300 feet (9,395 feet, true vertical depth "TVD"). Electric logs have been run with preparation for completion and testing operations under way. Meridian holds a 93% working interest in the well and is the operator.
This is the second well in the Company's Biloxi Marshlands Project area. The first well, the Biloxi Marshland No. 1-1 well was drilled to a total depth of 9,294 feet MD (8,935 feet TVD) and encountered the targeted Cris "I" sands which, based on the electric log, appeared to be productive but with sand/shale interfaces or laminations. Having completed its study of the petrophysical characteristics of the sands and observing comparable logs in wells in the immediate area, the Company is arranging a schedule whereby it plans to test the Biloxi Marshland No. 1-1 well in an effort to place it on production simultaneously with the recently drilled B-6-1 well, together with any other wells that may be drilled prior to completion of the necessary pipeline, gathering system and associated production facilities. Although the Company believes that its first two wells are representative of recent wells in the area there can be no assurances concerning the producability or the producing rates on either well until the wells are tested and actually placed on production. Completion of the pipeline construction is not expected before the end of March 2003.
Meridian has options and leases comprising approximately 200,000 acres in the Biloxi Marshland Project and plans to continue shooting its 3-D seismic survey in the area as early as March 2003, as the weather permits, covering all of its acreage plus approximately 200,000 additional acres of state water bottoms for an approximate total of up to 500 square miles of new proprietary 3-D seismic data. Meridian maintains its focus in the south Louisiana and south Texas Gulf Coast region, but has shifted its exploration efforts to what it believes will result in plays similar to its Thornwell fields in west Louisiana and its Biloxi Marshlands field utilizing 3-D seismic to identify potential hydrocarbon indicators for shallower, higher-confidence-styled multiple well plays.