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

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.

mrp have an interest in a cbm project (under review) so this could move the sp if positive?.

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thanks for your time

Ok here is some long awaited news

Meridian Petroleum PLC
27 April 2006



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

Activity Update


Meridian, the oil & gas exploration and production Company with key assets in
the USA and Australia, today issued the following update on its activities.


Victory 1-21 (10% WI)

As a result of the completion and acidization of the well, fluid is currently
being removed from the well bore. However, the well is continuing to produce
gas at the rate of 150 - 250 mcfgpd during this process. The removal of this
fluid is expected to take between 30-45 days following which it is anticipated
that production will rise to approximately 1 mmcfpd. The well deepening enabled
an additional 31 feet of net pay to be exposed. The well is on line and tied in
to the local system.


Calvin 36 # 1 (80% WI)

The Company is proceeding as planned with the completion and tie in of the
Calvin 36 # 1 well. This is a complex reservoir and requires a conservative and
well considered approach. The plans for completion are still on track although
the Company has experienced some small hold ups in obtaining the appropriate
personnel and equipment at the right time. The Company is maintaining a
conservative and realistic approach and will keep the market informed
accordingly. The Company 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 Sligo Petit or Rodessa zones.
This well is already cased and as such this planned work over is anticipated to
entail minimal capital expenditure. Re-entry is planned to commence after the
completion of the 36 # 1 well.



Orion (100% WI)

The Company has commenced the permitting process with the State of Michigan DEQ
and has recently signed the second 40 acre lease block with the land owner
therefore enabling an 80 acre unit to be established. A survey of the surface
location has taken place and steps to enable the relevant insurance coverage to
be put in place have commenced. Drilling activity is likely to commence, based
on permitting and approvals, towards the end of the second quarter.



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 form 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 finalizing an agreement to shoot 3D seismic with a
Houston based partner over the entire acreage position, possibly in the 3rd or
4th quarter. Utilization of 3D seismic will minimize dry hole risk by the
clearer identification of the sand channels initially identified by the Company
with the re processing of the original 2D seismic lines.



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 on which a detailed
feasibility study has been completed by an independent consultant in the region.
This study is currently being reviewed by Scott Pickford, the Company's
reserve engineers. Following the review by Scott Pickford, anticipated in the
next few weeks, the Company expects to lease an initial foot print in order to
undertake a pilot project.



Australia, Dolores Prospect (100% WI)

Meridian has conducted a detailed review of all of the original data associated
with this prospect. This in turn entailed the re-processing of the original
seismic lines and also a detailed AVO analysis on certain portions of these
lines. This analysis reported several distinct hydrocarbon indicators and two
potentially significant reservoirs. This data and the supporting study are
being reviewed by Scott Pickford in the UK and an opinion will be rendered
shortly. The prospect is located approximately 40km West of the Moomba to
Adelaide pipeline and is therefore not 'stranded gas'.



Anthony Mason, Chief Executive of Meridian said:



'Meridian continues to move its key projects forward with the primary objective
of achieving stable and sustainable cash flow. We are particularly encouraged
by the potential of our CBM and Australian prospects studies which are currently
being assessed by our reserve engineers.'



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



Enquiries:

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


Westhouse Securities (020 76016100)
Bill Staple
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

wouldn't want to be out of these atm!

Good out look for the future , the share price was up 4.5 earlier on , but at the moment it's hardly on fire ...

yet!- eagerly awaiting review on australia and cbm!

I guess today's news is already incorporated into the sp, that is why the sp has not gone up significantly.

from oilbarrel.com:

30.04.2006
Meridian Petroleum Successfully Deepens The Victory 1-21 Well And Hopes To Get Calvin 36-1 Onstream Shortly
AIM-quoted Meridian Petroleum has had an explosive start to 2006, with its share price increasing four-fold over the first five months of the year, triggered by the success of its Calvin 36-1 well in Louisiana, which flowed more than 1 million cubic feet per day of condensate-rich gas. Whats more Calvin is just one of a number of near-term production projects now edging towards delivering solid and sustainable cashflows for the AIM-quoted firm, which in February raised 1 million through a placing.

There has been, for example, a positive update from the Victory 1-21 production well in Michigan, in which Meridian has a 10 per cent working interest. The well is now producing gas at a rate of between 150,000 and 250,000 cubic feet per day after it was successfully deepened in March, a procedure which exposed an additional 31 feet of net pay. After deepening, the well was treated with acid to stimulate flow and the excess fluid is now being removed from the wellbore. The flow rate is expected to surge to around 1 million cf/d as this work is completed over the next month.

The company has also made progress with its 3 billion cubic feet Orion sour gas project, also in Michigan, of which it holds 100 per cent. The field is home to two wells that were drilled and produced at rates of between 2 and 4 million cubic feet per day during the late 1980s and early 1990s but were then shut-in because of the hydrogen sulphide content of the gas.

Meridian plans to get this gas deposit back into production using a single well and two sulphur treat towers, a facility that is expected to cost between US$1.25 and US$1.5 million. The permitting process is underway and the company has extended its land holdings here to enable an 80-acre unit to be established. Drilling activity is likely to get underway towards mid-year. Meridian expects the sustained flow rate to come in between 2-4 million cf/d like the previous wells.

Progress is also being made at the Calvin field in Louisiana, the star performer in the field after the 36-1 well flowed more than 1 million cf/d from the Sligo Petit zone. Meridian has an 80 per cent working interest in this project. There have been some delays getting the well onstream due to the difficulties of getting the right people and equipment in a tight market. This is a complex reservoir and Meridian believes it is better to do it right than to do it quickly with less than optimum equipment.

It now hopes to get the 36-1 well tied in over the next month, when it will then re-enter an old well on the field, 35-1, to test the Rodessa zone and potentially produce from either the Sligo Petit or Rodessa zones. The well is already cased so this should be a low-cost workover.

Meridian is also expanding its acreage position in Mississippi, where it is leasing acreage positions over three Lower Tuscaloosa oil recovery projects. The company hopes to shoot 3D seismic over the acreage in question later this year with drilling operations scheduled for early 2007.

In the meantime, the company is excited by a new coal bed methane opportunity in the US. Meridian has hired petroleum engineering consultancy Scott Pickford to review an existing detailed feasibility study, which, if the outcome is positive, will encourage the company to lease an initial foot print in order to undertake a pilot CBM project.

There are also signs of progress in Australia, where Meridian holds 100 per cent of the Dolores prospect in the Arrowie Basin. Dolores is reckoned to hold around 125 bcf of gas and lies just 25 km from the existing Moomba-Adelaide gas line. Meridian has conducted a detailed review of all of the original data held on the Dolores prospect and reprocessed old seismic lines. This work has pointed to two potentially significant reservoirs. Scott Pickford is now reviewing this work. Meridian is also cheered to hear that its Australian lawyers expect a positive outcome from their negotiations on native title applications within the next few months. Until these negotiations are concluded, work cannot get underway on Dolores.

It all adds up to an interesting low-to-medium risk exploration portfolio, with plenty of near-term production in train to make sure growth is underpinned by cashflows.

Sunday Times
April 30th 2006

"This weeks potential speculative young superstar is Rift Oil. Sadly, as I write, it has doubled in the few days since its launch and by the time you read this its 12p may be far behind it. If the price isnt around 12p when you read this, let it go; instead look to tiddler Sefton Resources. Meridian Petroleum is looking strong and if you love the far reaches of volatility, ultra-unpredictable Regal Petroleum offers explosive speculative action."

safer bet is mrp imo- although v short term ?- but med to long looking good.

I like MRP too ...... Have already been invested for several months, though I took some profit off the table a couple of weeks back ..... There seems some quite firm resistance at 40, but with sp now back around 32, there is room to manoeuvre.

As for RPT!!!! ...... well, I am very happy to be running a smallish short position there.

By the way, I don't know the excitment surrounding RIFT, but sp has certainly left 12p well behind ..... you can currently buy at 9.88!

Actual and potential MRP investors will like this article form oilbarrel.com dated today (1st May) ......

"Meridian Petroleum Successfully Deepens The Victory 1-21 Well And Hopes To Get Calvin 36-1 Onstream Shortly
AIM-quoted Meridian Petroleum has had an explosive start to 2006, with its share price increasing four-fold over the first five months of the year, triggered by the success of its Calvin 36-1 well in Louisiana, which flowed more than 1 million cubic feet per day of condensate-rich gas. Whats more Calvin is just one of a number of near-term production projects now edging towards delivering solid and sustainable cashflows for the AIM-quoted firm, which in February raised 1 million through a placing.

There has been, for example, a positive update from the Victory 1-21 production well in Michigan, in which Meridian has a 10 per cent working interest. The well is now producing gas at a rate of between 150,000 and 250,000 cubic feet per day after it was successfully deepened in March, a procedure which exposed an additional 31 feet of net pay. After deepening, the well was treated with acid to stimulate flow and the excess fluid is now being removed from the wellbore. The flow rate is expected to surge to around 1 million cf/d as this work is completed over the next month.

The company has also made progress with its 3 billion cubic feet Orion sour gas project, also in Michigan, of which it holds 100 per cent. The field is home to two wells that were drilled and produced at rates of between 2 and 4 million cubic feet per day during the late 1980s and early 1990s but were then shut-in because of the hydrogen sulphide content of the gas.

Meridian plans to get this gas deposit back into production using a single well and two sulphur treat towers, a facility that is expected to cost between US$1.25 and US$1.5 million. The permitting process is underway and the company has extended its land holdings here to enable an 80-acre unit to be established. Drilling activity is likely to get underway towards mid-year. Meridian expects the sustained flow rate to come in between 2-4 million cf/d like the previous wells.

Progress is also being made at the Calvin field in Louisiana, the star performer in the field after the 36-1 well flowed more than 1 million cf/d from the Sligo Petit zone. Meridian has an 80 per cent working interest in this project. There have been some delays getting the well onstream due to the difficulties of getting the right people and equipment in a tight market. This is a complex reservoir and Meridian believes it is better to do it right than to do it quickly with less than optimum equipment.

It now hopes to get the 36-1 well tied in over the next month, when it will then re-enter an old well on the field, 35-1, to test the Rodessa zone and potentially produce from either the Sligo Petit or Rodessa zones. The well is already cased so this should be a low-cost workover.

Meridian is also expanding its acreage position in Mississippi, where it is leasing acreage positions over three Lower Tuscaloosa oil recovery projects. The company hopes to shoot 3D seismic over the acreage in question later this year with drilling operations scheduled for early 2007.

In the meantime, the company is excited by a new coal bed methane opportunity in the US. Meridian has hired petroleum engineering consultancy Scott Pickford to review an existing detailed feasibility study, which, if the outcome is positive, will encourage the company to lease an initial foot print in order to undertake a pilot CBM project.

There are also signs of progress in Australia, where Meridian holds 100 per cent of the Dolores prospect in the Arrowie Basin. Dolores is reckoned to hold around 125 bcf of gas and lies just 25 km from the existing Moomba-Adelaide gas line. Meridian has conducted a detailed review of all of the original data held on the Dolores prospect and reprocessed old seismic lines. This work has pointed to two potentially significant reservoirs. Scott Pickford is now reviewing this work. Meridian is also cheered to hear that its Australian lawyers expect a positive outcome from their negotiations on native title applications within the next few months. Until these negotiations are concluded, work cannot get underway on Dolores.

It all adds up to an interesting low-to-medium risk exploration portfolio, with plenty of near-term production in train to make sure growth is underpinned by cashflows. "