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Meridian Petroleum PLC
04 April 2006

MERIDIAN PETROLEUM PLC
('Meridian' or 'the Company')

VICTORY 1-21 SUCCESSFULLY COMPLETED


Meridian, the oil & gas exploration and production company with key assets in
the USA and Australia today announced that the Victory 1-21 production well (10%
WI) has been successfully deepened in order to further penetrate a Niagaran
reef.

Using a coiled tubing unit and conventional work over rig, Total Depth was
reached at 4,394 feet and gas communication was made between 4,161 feet and
4,192 feet, an increase of approximately 31 feet in net pay. The well was
treated with acid to stimulate flow and is currently being swabbed to remove
remaining acid from the well bore following which the well will be put back on
line this week. It is anticipated that enhanced production rates will be gained
from the additional pay sections in the reservoir.

Anthony Mason, Chief Executive of Meridian said:

'The successful deepening of Victory 1-21 is good news for Meridian. The well
will be back on line this week, following which Meridian will resume receiving
income from Victory 1-21. We are now looking forward to the imminent completion
on Calvin 36.'

Don Caldwell, a certified petroleum geologist, is the Company's Qualified Person
and has reviewed the information in this announcement.


Enquiries:


Meridian Petroleum (020 7409 5041)
Tony Mason, Chief Executive

Westhouse Securities (020 7601 6100)
Richard Morrison

Citigate Dewe Rogerson (020 7638 9571)
Media enquiries: Martin Jackson / George Cazenove
Analyst enquiries: Nina Soon


This information is provided by RNS
The company news service from the London Stock Exchange ND

tony mason has alot of shares...wonder if thats the reason

It could also be to do with the fact that this income level is not sustainable in the medium term. I believe the net interest goes down to around 50% in a few months time. The reserves booked are just 2-3 yrs production. It is all from a single well. If anything happens to it they are f'cked. They need to get other projects on the go!!

Net interest goes down to 54.589% after the pay back of $4m in costs. Orion is still increasing it's flow rates and has a high chance of having it's booked reserves increased. Once pay back of the $4m is achieved next month, MRP are looking pretty in the bank for their small M cap and will still be earning aprox $1.3m/month @ 54.589%,providing flow and gas price remain the same. The big question is what will they invest all this money in and when.

CORRECTION...MRP earning net $1.3m/month now and will get net $1m @54.589%/month after payback.

chav,

But until they develop other assets, they only have one producing well, and that makes the risk higher.

The development of other assets will cost, and you have to consider how long the current well will run before the pressure starts to drop.

I have no doubt that they are working on a way of developing Calvin Deep alongside a new partner. News will be released in due course.

Tau,

And do you have any ideas of the cost of that development?

Yes, I do. It is manageable with the right partner / terms and on a well by well basis.

Andy... Correct they do have only the one producing asset at the moment however that asset is making a lot of money for MRP related to Market Cap and all of these small oilers have to get the first asset online and earning before the 2nd,etc. The fact that they are making sufficent money for the bank to pay for the next project without coming to the market is a massive plus to me and them. Like any other gas/oil well,Orion will lose pressure and run out however at this stage the pressures and flows are still increasing and it will pay back it's costs in June,then in profit. Initially Orion was only expected to flow at 2.5mmcfd however it is now at more than twice that rate therefore a high chance of having it's reserves upgraded.

A very high chance of having a reserves upgrade.

Tau,

What is your estimate for Calvin deep development costs please?

Per well - approximately $1.2 - $1.3 million.

MRP will probably get someone to farm-in for Calvin Deep and share the costs although they could go alone and bring one well online at a time so that it self funds? So long as they hit commerical gas of course!

You are almost certainly correct regarding the farm-in.

Chav,

The last sentence being the most pertinent there of course!

They did in fact have a partner, who decided to walk, which probably illustrates the risk better than anything we post here.

With an estimated 110Bcf indicated applicable to Meridian they should find commercial amounts of gas.

Tau,

Is indicated a 100% secure reserve?

Not heard 'indicated' in relation to oil/gas resources. Normally means the used in relation to metal ore deposits. Is is equivalent to P2 (probable/50%)?

Calvin Deep is still a CONTINGENT resource according to the latest RPS report.

Calvin Deep has been tested before and is proven to have gas.


Calvin Deep Net Revenue Interest
70.0% Contingent Reserves
Gas 158 bcf

There are a number of significant opportunities in the deeper zones of the Calvin Field.

The Cotton Valley deep zone of the field contains 4 potential reservoir zones:- Knowles Limestone; Terryville A & B (normal pressure); Calvin A & B (over-pressured); Troy Limestone. These reservoirs extend from some 12,500 feet down to the Troy Limestone at over 14,500 feet.

The Company is currently seeking partners for the development of those deeper reserves. One possble target zone is the Terryville A & B, respectively 65' and 85' of net sand, normally pressured, but with tight porosities. The Company's independent consultants are confident that there is significant gas in place, but the use of water-fraccing techniques will probably be needed to improve on previously tested flow rates from these sands.

The lower over-pressured zones have tested gas at prolific flow rates in the past, but with very high (12,500-15,000 psi) pressures that have caused blow-outs. Heavyweight, high-pressure handling facilities and safety systems will be required to control well-head conditions and the development plan for these resources will need careful thought and costing.