News you've all been waiting for ...

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

Micro Cap. Oiler Meridian Petroleum Entering New Era
Stock Name Meridian Petroleum
EPIC MRP
Rating BUY
Mkt. Cap. 9.4m
Price 9.75p
Target 29p
BOEPD June A 800
Revenue June $2m



Image : Meridian Petroleum PLC

The AIM market is frequently faulted for it's poor regulation and for being the resultant breeding ground of unpunished white collar fraud. Last week after the result of a lengthy investigation Meridian Petroleum became one of the few companies whose reporting aberrations had been so apparent that the governing authorities have little choice but to take action, in this case issuing a censorship and 75,000 fine for among other things signalling to the market that it's Calvin well completion was to occur within a month, when actual completion was almost 3 years later.

The ruling drew a line under the governance issues that had plagued the company during it's previous administration, with Meridian recently emphasising that Tony Mason, the founder and former ceo, who much of the blame centred on had sold the majority of his shareholding.

Having suffered a series of exploration failures and delays on their niche US assets, the company had faced an uncertain future. When Orion came online at the turn of the year it looked to offer the strapped for cash company a temporary reprieve, buying time to offload it's non-operating Australian licences and seek a farm in partner for it's Calvin deep prospect.

Better than expected flow rates and a doubling of US gas spot prices, have since allowed the company to shelve the knock down Australian sale, with a view of developing the licence themselves.

Although the reserves at Orion are estimated to be modest 2.3bcf, the relatively strong cash flow that it has generated allowed the company to earlier this month secure a $50m financing package for purchase of new assets and development of existing fields. The first acquisition was for a working interest in the East Lake Verret (ELV) Field in South Louisiana. This deal was finalised on the 1st of July, for a total consideration of $8.95m at a value of $12.60 per probable barrel.

With a market cap. in the region of only 9m and cashflow in the order of $10m+ a year from Orion alone the company appears cheap. Assuming that they develop and raise current production from ELV they should be able to realise a potential further $10m in revenues. Extrapolating that with the rest of the finance would take the total revenue of the company to the region of $40m pa.

Perhaps the most exciting upside comes from the Australian assets. The near doubling of gas prices has allowed Meridian to abandoned the proposed sale of these licences and at a cost of $2.5m is now conducting an extensive 3D seismic program, centering on the previously identified 423bsqt Delores prospect.

Monthly production rates at Orion meanwhile continue to surprise on the upside with a reassessment of reserves due later this month an obvious catalyst for a rerating.

Given the illiquidity of the stock and it's chequered past we consider this a speculative buy despite it's huge upside.

http://www.worldstockforum.com/worldstockforum/articleView.do?mn=article&id=19

Well i've bought a few of these today on the weakness.
Seems a very interesting stock with lots going on and a variety of assets, plus its well funded. Management seems driven and able. Strong production and cashflow. So currently 7.5m valuation seems very good value indeed.

very very good value!!!

Things are ticking along very nicely still......value will come in the sp.....interims due out 25th September which should show a maiden profit.





MERIDIAN PETROLEUM plc

('Meridian' or the 'Company')




Operations Update







Meridian Petroleum (AIM: MRP), the oil and gas exploration and production Company with producing assets in the USA and exploration licences in Australia, announces an update on its US operations in Michigan and Louisiana for the month of August 2008.




Orion 36 Well, Michigan, USA




The Orion 36 well set two new gas production records in August helped by minimal down-time during the month. A new gross daily production record of 6.05mmcfd was achieved on 15 August 2008. During the month the average gross daily gas production rate was 5.7mmcfd and the well produced 171mmcf, comfortably exceeding the previous record month. Production of natural gas liquids (NGL's) during the month was 1511 bbls.




Net production to Meridian in August (based on a Net Revenue Interest (NRI) of 54.589%) was 93.3mmcf of gas and 825bbls of NGL's. This is equivalent to 16375 barrels of oil equivalent (boe) at a daily production rate of 528 boe/day.




At the end of August typical flowing well-head pressure was in the range of 550 - 600 psi and following the very successful build-up of production over the past 12 months, the management believes that this is likely to be the peak month for the Orion 36 well.




RPS Energy have evaluated the bottom hole pressure data obtained in July and have provided the Company with updated reserve figures calculated as at 1 July 2008. When compared with the previous figures and allowing for production during the first half of 2008, 1P remaining recoverable reserves have increased by 7.5% to 1.27bcf (as at 1 July 2008). Calculated 2P reserves have however declined by 11% to 1.46bcf as at 1 July 2008.




US gas prices were lower in August but recovered a little at the end of the month to average $9.14 per mcf for gas produced. The Company's gas hedging contracts produced a profit of over $100,000 in total for July and August.




'Orion2' Prospect, Michigan, USA




Wellmaster, the Orion contract operator, is in the process of finalizing the leasing and permitting arrangements required to drill this prospect from the existing site. Discussions between the Company and Wellmaster on the commercial arrangements have begun, and it is expected that these will be similar to the existing Orion arrangements. Efforts are now underway to secure the necessary equipment and resources, and although the market remains tight, there is a reasonable prospect of drilling commencing before the end of the year.




East Lake Verret Field (ELV), Louisiana, USA




The ELV Field continued to deliver a steady performance in August although production was affected by the need to shut down at the very end of the month to prepare for Hurricane 'Gustav.' The storm passed right over the ELV facilities but no significant damage was reported and the field was brought back on-line by 4 September 2008.




As a result of this shut-in, the August figures are subject to final confirmation, but we expect gross gas production of 140mmcf and gross oil production of 6450bbls. Meridian's net share of production is 28.4mmcf of gas and 1458bbls of oil, equivalent to 6190 boe at an average daily rate of 200 boe.




The Company is continuing to progress plans for the drilling of 2-3 wells to bring the proven undeveloped reserves of ELV on-stream as quickly as possible. Initial geological work is underway and the procedures for clearance with partners and the Louisiana State authorities have commenced. Based on the information provided at the time of the acquisition of the ELV interests, proven undeveloped reserves comprise some 500,000 boe compared with 200,000 boe of proven producing reserves. A number of drilling locations are being evaluated with the objective being to materially increase the Company's net production from the field.




Stephen Gutteridge, Chairman of Meridian, said:




'Our producing assets continue to perform well. Our plans for drilling a second Niagaran reef, the 'Orion2' prospect, are timely, and it is an opportunity to offset the expected future decline in Orion 36 output with a new source of production and continue the efficient utilisation of our plant capacity. Together with the 500,000 boe of untapped proven reserves in ELV, we are anticipating adding material new production in the next 6 to 9 months.'




Resources Update




The reserves estimates reproduced below have been prepared in accordance with the standards adopted by the Society of Petroleum Engineers. 1P reserves are Proved reserves with a 90% probability that value will be equal to or greater than stated value. 2P reserves are Proved plus Probable reserves with a 50% probability that value will be equal to or greater than stated value.




Orion - Gross Remaining Recoverable Reserves




Reserves (bcf)
As at 1 Jan 2008
Production Jan - June 2008
Calculated

Reserves as at 1 July 2008
Latest Reserves estimate as at 1 July 2008
Inc/(Dec) in Reserves

%

1P
1.91
0.73
1.18
1.27
7.5

2P
2.37
0.73
1.64
1.46
(11.0)





RPS Energy has approved these reserve figures.




ELV Net Reserves as at 1 March 2008 (as reported in the Acquisition announcement of 12 June 2008)




Reserves
Total

Hydrocarbons (boe)

Proven - Producing
206

Proven - Non-Producing
58

Proven - Undeveloped
504

Total - Proven
768

Probable
252

Total Proven & Probable
1020

is this the mother of all bargains?

more like the bastard child!

Has to be the mother of all bargains for any bastard child and their Mums and Dads!

yup .... great performance over the last 3 years! ..... like paternity cases, well worth avoiding!

The sp has been in an uptrend since April, increasing 50% in that time.

Interims out on the 25th September should show a maiden profit from a H1 revenue of approx $8m.

is that so .....

That is so.

hmm! moving averages seem to be heading south .... must be something to do with the wet weather

As of last trade , Meridian Petroleum (MRP:LSE) traded at 8.25, 50.00% above the 52 week low of 5.50 set on April 08, 2008.

silly % games .... but if you insist ..... sp down to March 2008 level and down >25% from June high and 25 and 50 and 200 dma all going down, as is current price!

Statistics can be whatever you want to make on them as usual ! Todays dip is due to the reserves increase at Orion not being as high as hoped for so some Peeps jump out again. Plenty of news in the coming months though with interims due on the 25th/orion 2 spudding/Oz seismics/ELV spudding/$40m available for new assets etc

exactly so, but you keep throwing your money down this well ..... GB will be delighted to see you redistributing your wealth!

Oil and gas down at the moment but hurricane "Ike" might change all this if it heads towards Texas.....expect a sudden surge in prices if there is going to be damage and disruption to the huge installations that way !.

whoopsadaisy! ...... did i just spot sp zipping though 200 dma? ...... sure did, but heading for Antarctica

My chart shows Antarctica in the 80 & 90's.....hopefully MRP will get there!!

cynic..the shorting city scumbag wanker