Meridian Releases Interim Results, Plans for Share Consolidation

Meridian Petroleum has announced interim results for the six months ended June 30, 2008. In a separate statement, Meridian has also announced plans for a 1 for 6 share consolidation.

Financial Highlights

  • Maiden Profit before tax of $1.3 million (2007 H1: $1.3 million loss).
  • Adjusted EBITDA* of $3.2 million (2007 H1: $1.2 million loss).
  • Revenue of $8.7 million (2007 H1 - Nil).
  • Debt facility for up to $50 million provided by Macquarie Bank.

Operational Highlights

  • Average net production in 2008 H1 increased by 103% to 657 barrels of oil equivalent per day (boepd) compared to Q4 2007.
  • Average net production in Q2 2008 of 735 boepd, up 27% on Q1 2008.
  • Acquisition of ELV interests for $9.84 million.

Post Period Highlights

  • New gross daily gas production record at Orion of over 6 mmcfd (1,000 boepd).
  • Operational handover and integration of ELV successfully completed.
  • Hedging contracts covering approximately 45% of projected output contributed $118,000 in July and August.
  • Average net production since period end, adjusted for the July shut-in period at Orion, of 725 boepd.
  • 1 for 6 share consolidation announced separately today.

Stephen Gutteridge, Chairman of Meridian Petroleum, said, "During the first half of 2008, we have delivered increased production, a substantial acquisition, financing to invest in future growth and a maiden profit.

"We now intend to build on this success by adding further US production through drilling and acquisition, and by clearly identifying and developing the value in our Australian licenses."