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

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

Lizard,

Yes. It's on my list to keep an eye on. I haven't bought any yet though.

Strawbs.

Calvin now online according to poster BLUEDOLPHINE on ADVFN and BRAINDEAD01 on iii,they are the same person,but could be right,usually posts a lot of rubbish though.

every man and his dog is waiting for this news, all the big profits taken in the oil sector today are now poised to plough into MRP. This is going to blow sky high on good RNS

do they know something!?

If there was truly news on Calvin there would be an RNS on same ..... there isn't, so at best, someone is a clairvoyant! ...... Nevertheless, sp is currently +2.5 on day

WELL THAT DIDN'T LAST LONG- i suppose 40p level resistance!.

why should a share rocket just because one wants it to? ..... A little patience ...... News will be forthcoming in its own time, whether good or bad

why shouldn't it rocket!.

this company is clearly undervalued with current assets let alone potential of australia and coal bed methane projects under analysis!.

morning all,
i don`t know if this has been posted, but the way the sp has rocketed since it was released shows how important CBM could be
Dexter

++++++++++++++++++++++++++++++++++++++

Fortune Oil PLC
18 April 2006



18 APRIL 2006

FORTUNE OIL PLC
('Fortune Oil' or 'the Company')

Liulin Coal Bed Methane


The Company is pleased to announce a conditional agreement to take a 60%
interest in a company formed to develop coal bed methane ('CBM') gas reserves in
the Liulin block in Shanxi Province, China. The other 40% shareholding will be
held by Molopo Australia Limited ('Molopo'), an ASX-listed company with
significant experience in the development of CBM in Australia. In 1999 a
subsidiary of Molopo signed a Production Sharing Contract ('PSC') for
development of the Liulin block with CUCBM (China United Coal Bed Methane
Company), a PRC government entity responsible for all CBM PSCs. Subject to
approval by the Ministry of Commerce, the foreign contractor rights in this PSC
will be extended and transferred to the new company, Fortune Liulin Gas Company
Limited, registered in Hong Kong. The initial obligation of Fortune Oil is to
commit US$2.5 million for further field appraisal, to be financed from the
Company's cashflow.


CBM consists of natural gas that is trapped within coal seams. China has one of
the world's largest reserves of CBM and its development is being encouraged
because of resource limitations and the need to remove gas from coal reserves on
safety grounds. To date CUCBM has signed over 20 PSCs with foreign companies
but the industry is only just emerging and China's CBM output is small at 100
million cubic metres per year. The industry has now been spurred by the
development of local gas markets and supply infrastructure, particularly in
Shanxi Province which has the two largest CBM basins.


We believe that Fortune Oil is the only foreign company controlling pipelines
and reticulation networks for supply of natural gas in Shanxi Province. This
gas is sourced from the Shaanxi-Beijing trunk pipelines which pass through the
province and are operated by our partner in the Fu Hua natural gas business. As
CBM fields are developed the gas will be supplied initially to local markets by
truck as compressed natural gas (CNG) and ultimately to Beijing as pipeline gas.
Therefore, once the Liulin block has been commercially developed, we envisage
the gas being supplied to Fortune Oil-controlled gas distribution companies such
as the Tongzhou CNG station in Beijing. This will provide Fortune Oil with an
independent source of gas and increase reliability of supply for our downstream
businesses.


The Liulin block is one of the best geologically proven CBM blocks in China.
Analysis from coal holes and exploration wells has indicated an in-place gas
resource of approximately 0.8 trillion cubic feet ('TCF'). With a successful
appraisal programme, this resource may be converted to recoverable reserves in
the order of 400 billion cubic feet (12 billion cubic metres) in an area of
approximately 200 square kilometres. The gas recovered to date is over 95%
methane, located in three main coal seams at a depth of 400 to 700 metres. The
coal parameters such as permeability, gas content and seam thickness are
favourable for CBM drilling, as advised by our technical consultants, Advanced
Resources International, Inc of Virginia, USA.


A Molopo subsidiary, Lowell Petroleum NL ('Lowell'), started to explore the
Liulin block over 10 years ago and drilled 4 vertical exploration wells under
the PSC in 2000. Under the terms of the agreement with Molopo, approval will be
sought from PRC authorities for the PSC to be extended and the rights
transferred from Lowell to Fortune Liulin Gas Company Limited. Fortune Oil
would then commit US$2.5 million for further appraisal over the next year and be
entitled to a 60% shareholding in the company, with Molopo retaining a 40%
interest. This would involve further drilling, in particular using techniques
recently applied successfully in China and Australia. Should this appraisal
work prove successful, then we anticipate commercial development of the block
commencing after two years.


The agreements for extension and transfer of the PSC are now being approved by
CUCBM for submission to the Ministry of Commerce for final approval, which we
expect to receive by end of May.



Bruce McGowan, Executive Vice-Chairman of Fortune Oil, stated:


'This is our first step into the upstream gas business. We are very excited by
the long-term potential of China's vast CBM resources and the synergies with our
gas distribution business. Development of Coal Bed Methane reserves is very
important for China to provide clean fuels for the community. Molopo's
experience in CBM development in Australia and its knowledge of the Liulin block
provide an ideal partner for Fortune Oil in developing our CBM business - the
combination is very powerful. All upstream developments have risk and we cannot
expect immediate results but the Company is very well placed to take advantage
of China's CBM opportunities and the accelerating demand for gas.'

Heard that the Calvin news will be released by end of this week.