Meridian Petroleum (EPIC: MRP)

Assets and Key Events

The following assets and events are based on the "Activity Update" RNS released on 27th April 2006. Victory 1-21 (10% WI) Fluid is currently being removed from the well, however it is continuing to produce gas at a rate of 150 - 250 mcfgpd. The removal of fluid is expected to take between 30 - 45 days, following which production is anticipated to rise to approximately 1 mmcfpd. Calvin 36-1 (80% WI 67.5% NRI) The Calvin well had substantial gas shows (see "Calvin Well Commercial" RNS 24-01-06). The company has experienced some small hold ups in obtaining the appropriate personnel and equipment, and now anticipates completion and tie in within the next 30 days. Meridian is developing plans to re-enter the Calvin 5 # 31 well to test the Rodessa zone and potentially produce from either the Sligo Petit or Redessa zones. This should require minimal capital expenditure and is planned to commence after the completion of 36 # 1. Orion (100%) The company has recently signed a second 40 acre lease block with the land owner. Permitting is on going and drilling operations are set to begin at the end of the second quarter. Based on data from earlier wells, the asset is believed to contain around 2.7 billion cubic feet of recoverable gas (See "Orion Lease Signed" RNS 14-02-06). Milford 36 (25% WI) The company plans to utilize coiled tubing on the well bore and drill several lateral legs. Drilling activity is likely to commence towards the end of the second quarter. Hustler (80% WI) Meridian has acquired the Old South Royalty lease in the centre of a defined area for potential production from the Lower Tuscaloosa oil sands. In order to develop this position further, the company has commenced acquisition of seismic leases, with an option to drill in some 800 acres around the Old South Royalty lease. The company is finalising an agreement to shoot 3D seismic with a Houston based partner. Emery Hudson The company is currently reviewing the 3D seismic data with a view to a possible re-entry in the third quarter. Coal Bed Methane Meridian has identified a significant CBM project in the USA. The study is with the company's reserve engineers. Following the review, anticipated in the next few weeks, the company expects to lease an initial foot print in order to undertake a pilot project. Australia The company has conducted a detailed review. The analysis reported several distinct hydrocarbon indicators and two potentially significant reservoirs. The data and supporting study are being reviewed by Scott Pickford in the UK, and an opinion will be rendered shortly.

Research

You should always do your own research before investing in a company, and you should not rely on comments posted here or on other sites as a basis for your investment descisions. The following links may be useful: Meridian Petroleum Web Site     Recent company RNS announcements     Oil Barrel

Just be careful girls/guys this is over valued and over bought when it drops it will be fast.Have a look at previous company announcements last year they were bringing Calvin on line by the end of the year to take full advantage of winter gas prices.We are still waiting for that even though it is still imminent,to date the company has been a serial dissapointer.
As for the current sp well no doubt as soon as the rns is released to confirm Calvin hook up there will be the usual mugs who buy in blind however to support the current sp the gas flow rate is going to have to be impressive .
As always dyor .

I have sold all mine now... 78% profit in 6 weeks, fairly happy about that

I suppose I should probably sell too. It's difficult though, as in my opinion the company seems to have pretty good prospects. Still, I held onto my CHP shares up until the primavera RNS, and that proved to be the wrong decision, so maybe I should! Arrrgggghhhh. Investing is so annoying sometimes.

Strawbs

still low mkt cap considering!. a fair rise and we will possibly see a pullback but i'm holding firm on these. saying that i would not be surprised if we see 50+p sooner rather than later.

What is MRP worth... It is worth in a Stock market, exactly what someone else is prepared to pay for it.

Fundamentals are very important, as I've oft said, but then there is hope value, potential etc.

Even if we computed exactly the value of assets, that does not equate to being the 'worth' of the company, which is why for so long many of us thought it was undervalued, albeit the market didn't, but where as seems to be happening with MRP the market wakes up to the 'value'! For the record I wasn't in at 7p. I think Ginger and others were here before me, so I don't pretend to have spotted this gem when they did.

Talk of 2 this year, yes of course it could be, but it could be x, y, z and noone with any certainly can tell you, although for me if its 1.20 next year, that still a pretty good rate of return, so whether its 1.20 today, tomorrow or next year to me...it's well worth the wait, and yes, it could be another Cairn. Cairn also started as a minnow.

Today's price can hardly be said to be dear, and I think some doubters who are perfectly entitled to have doubts, are doing so based on the price a few months ago, to the price today, whereas what they should focus on is what price the company floated at, and where we are now and on that basis, either it was far too dear at the outset, or else we are still too cheap now.

The market ultimately decides, and MRP is in a very unusual position of having several items likely to fall into place within the space of a few months, where virtually any one from 4 will enable MRP to go forward, acquire more assets and work more assets, let alone all of them succeeding.

Some suggest placings etc., but I don't really see what point a placing would have in MRP's arsenal, if cash will be available.

IN that event scrip issues are a more likely scenario for the future, if, as has been suggested more shares are needed 'because of institutional demand'.

From my point of view they can go sing for them! They have every opportunity of filling their orders in the market, and if by doing so it raises the sp, then so be it, as that is how the market should work...not preferential treatment for institutions who already get quite enough breaks.

What is so difficult to consider with MRP is that unlike companies who may only have one project to look forward to, with finely balanced chances of success, in MRP's situation, they have several projects, all of which have a very good chance of being profitable plays, so its then hardly surprising that the sp has increased, because you cannot now buy MRP just based on the next RNS, you have to consider All the other assets and the effect of ANY assets being on line, because that is where the real mileage for MRP comes into being.

Price of MRP 72 m shares in issue
38.25
Market Cap. [m]
24.52

Victoria oil: 100m shares in issue
201.00 -
Market Cap. [m]
200.99

you would have to think it is worth more than its float price high 52p. which imo was a total over valuation now as we are seeing the mkt is putting a fair value on the company total under valuation which should be over this mark imo.

It is starting to fall as the sp has gone up too quickly...still overvalued at 36p

we will see in 6 months!.

watch this rocket this afternoon

don't think so! ph. seems strange but pleased to see a drop.

hold for the long term!.

The market is closed on GOOD FRIDAY and EASTER MONDAY,so only two trading days left to get in here cheap.I believe NEWS will be out next week,so anyone not in now is going to miss out bigtime,IMO.

Calvin is hooked up now so its probably too late to buy in imho...

Strawbs, have you sold yet?

sold are you mad?.

next few sessions could be a bit bumpy- but i'm holding these med/long term!.

Hi Tonker,

Yes. I sold on Monday before the close. The price was more than double what I paid for them, and since they had exceeded my price target, I preffered not to take the chance of a sudden price collapse "post RNS", as happened with my CHP shares. I'll probably buy them back if the price drops sufficently and stabalises (same with CHP), as I still feel they have good medium to long term prospects. In my opinion the price is too hot at the moment though.

Strawbs.

pleased for the pull back after decent run!.

hoping for this as had the kiss of death rns before when they release the

'no reason for share price movement' statement'.

sold half holding at 35.4p hold rest med long term looking at better entry point for funds to reinvest which is approaching imo.

I thought about "top slicing", but my "things I want to buy list" is always bigger than my "cash available pot". So these days I set an entry price, and if it reaches that point I buy back, otherwise I use the money elsewhere.

Strawbs.

strawbs; have you looked at goo?!.

decided to buy in at 33.5p...should see a big rally now before Calvin news released before Easter