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

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. "

The wait will be over very shortly, but then we have a full agenda of news, which is what makes MRP such a useful and productive share. Other oilies that I own, may have one drilling in place, with a cap as large as MRP, no production, and I consider them cheap!

MRP has such a full agenda, and most of it news that will hit the markets within a few months, literally....and that's not including the CBM play, or Dolores.

It would not surprise me to hear of a farm in for the Aussie project, but which whilst bringing production that much nearer, would IMHO not be necessary, but still very exciting prospects.

With pundits talking the price of oil down, but apparently unsuccessfully, there seems little chance of it going down for anything more than a few weeks, but talking it down wont alter the fact that China and Asia's needs have to be met from somewhere.

Politically the situation is even worse than during the Iraq war and where even if the situation is sorted with Iran, others have pushed their head above the parapet to bring even more instability. Chavez, whilst having the second largest oil reserves in the world (the first if you cound extra heavy oil), is going all out to be President of South America, and putting a lot of his neighbours noses out of joint, and focusing the US even more on indiginous or safe supplies.

It would not surprise me if the situation gets worse with Chavez being subject to sanctions too for seizure without compensation...Nothing to do with politics but everything to do with the big oilies exaacting revenge, which they always do.

So talk of $20 a barrel oil, seem very far removed unless by some decree they change the barrel from what 42gallon to 10gallons.

$20 pb is a total nonsense, but then so imo is $100, at least in the foreseeable future ..... In the very short term, as summer consumption is lower, I would not be surprised to see some weakening, but suspect the bottom will be no lower than $65 ..... Of course, if political disruption intervenes, there result may even be an increase to say $75 while the situation is resolved ...... However, much political noise is purely sabre rattling and has little bearing on reality.

Meridian Petroleum upbeat on Delores
MoneyAM

Meridian Petroleum said the Delores prospect in south Australia is estimated to hold gas-in-place of 547 billion cubic feet.

Delores is located at the Arrowie Basin, onshore south Australia, about 40 kilometres east of the Moomba-Adelaide gas pipeline linking the Cooper Basin gas fields to the south Australian gas consumers.

Meridian, which has a 100% working interest in the licence, said it is planning to drill the area later this year.

Scott Pickford, part of RPS Energy, carried out an independent evaluation of the site, it said.

I emailed TM regarding cost of drilling Delores, below is his reply. does anyone know where there are any maps of the oz prospects ?
tia,
Dexter

What was released is to my mind a very conservative estimate as was the probability. The price and structure we are not prepared to divulge at this time but clearly that issue is on going and very much being worked upon.

Anthony J. Mason,

CEO Meridian Petroleum PLC
Meridian Resources, USA, Inc
Meridian Resources Australia, Pty
(T) 713-599-1611
(C) 713-201-6883
(F) 713-552-1641


--------------------------------------------------------------------------------
From: ****** *******
Sent: Mon 5/15/2006 05:24
To: Information
Subject: re; delores


Dear sir,
your update on reserves in the delores project are very encouraging indeed and I look forward to the commencement of drilling. In the RNS it was stated the theprobably of a strike rate is 20%, would you be able to give me any idea of the cost involved of drilling each and any well.
many thanks,
Roger *******

18.05.2006
Meridian Petroleum Hopes To Drill The 550 BCF Delores Prospect Later This Year As It Chases CBM Potential In The US
The newsflow from Meridian Petroleum usually concerns its projects in the US but this week the AIM-quoted firm provided an update on its Australian properties, where work has been stalled for the past two years due to native title issues. With the company hopeful its Australian lawyers are within months of reaching agreement on native title, it has released details of an independent reserves report from petroleum engineering consultancy Scott Pickford.

The report covers the Delores prospect, which lies in licence PELA 132, one of four Meridian holds in the Arrowie Basin of South Australia. The prospective resource on Delores is put at 547 billion cubic feet of gas in place, with a P50 recoverable gas number of 432 bcf. Scott Pickford has assigned the prospect a one-in-five chance of success.

If the drillbit proves up these numbers - and Meridian hopes to drill here later this year - then this looks to be a commercially viable prospect. Unlike so much of Australias gas, Delores lies within 40 km of existing infrastructure, namely the Moomba-Adelaide gas pipeline which links the Cooper Basin gas fields to South Australian gas consumers. Growing gas demand in the region wedded to market deregulation and a favourable licensing and fiscal regime add to the projects attractiveness - and Meridian holds 35,000 sq km of acreage here which could hold Delores look-alikes.

Meridian is mulling a possible farm-out or joint venture before drilling Delores, which is likely to be a multi-well prospect and will require capital investment in a connecting pipeline.

To run a project of this size from Houston or London you need to have people on the ground, Meridians Houston-based chief executive Tony Mason told oilbarrel.com. It might be useful to have a strong local partner although it is possible we might hire people locally and do it ourselves because this is fairly shallow drilling and the test wells will not be that expensive.

Meridian has already done significant work to derisk the prospect, reviewing and reprocessing all the stack data and 2D seismic that was originally shot in 1986. We have remapped it and created the digital footprint we were looking for, said Mason. We did AVO analysis on the lines and identified two features with hydrocarbon reflections and bright spots.

In the meantime the company continues to make progress in the US despite the equipment shortages that are currently hampering the efforts of all onshore operators. The Victory 1-21 production well in Michigan, in which Meridian has a 10 per cent working interest, is producing at variable rates, between 150,000 and 250,000 cubic feet per day, as it is cleaned up following a deepening and acid treatment, which exposed an additional 31 feet of net pay. The flow rate is expected to surge to 1 million cf/d as this work is completed.

The star in the companys portfolio is the Calvin field in Louisiana, where the Calvin 36-1 well flowed more than 1 million cf/d of condensate-rich gas from the Sligo Petit zone earlier this year. 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.

Once the 36-1 well has been tied-in, the company plans to 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 hoping to gain rights to deeper gas zones in the Calvin field, which is on trend with deep gas plays to the north that are now in production.

The company has also made progress with its 3 bcf Orion sour gas project 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 cf/d 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. Meridian expects the sustained flow rate to come in between 2-4 million cf/d like the previous wells.

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. This is an exciting project, which could hold around 1 tcf of reserves, and an announcement is expected shortly.

CBM,

Its a happening thing.


Caterpillar to power coal methane gas project in China
www.chinaview.cn 2006-05-19 21:37:51


BEIJING, May 19 (Xinhua)-- Caterpillar Inc. (NYSE: CAT) announced Friday that it will work with a Chinese coal mine on a coal methane gas project which is expected to be the largest of its kind in the world.

According to Stu Levenick, Caterpillar group president for China, Caterpillar has been selected to provide 60 methane-gas-powered generator sets to produce 120 megawatts of power at the Sihe Coal Mine in Jincheng City, north China's Shanxi Province.

The Shanxi Jincheng Anthracite Coal Mining Group Co., Ltd. is the project developer for the methane gas power project.

"The residents of Shanxi Province will benefit from this power plant," Levenick acknowledged. "This project is expected to help improve mine safety, reduce greenhouse gas emissions and generate electricity from methane gas."

The entire methane-fired power plant is expected to be fully operational in 2007.

Methane gas is found in coal seams and can be hazardous if not properly managed and ventilated from mines. Historically, the methane has been released into the atmosphere, generating greenhouse gas emissions.

By capturing the methane gas and converting it into electric power, the methane-fired power plant is estimated to alleviate greenhouse gas emissions by 4.5 million tons over a two-decade period, according to Levenick.

China plans to develop coal methane gas into a major new energy resource for this century.

Currently, China's coal methane gas reserves have reached 30 trillion cubic meters, the third largest in the world only after Russia and Canada. Enditem

Editor: Yang Lei

CBM = cow bottom methane! ..... If all cows were culled, there would be significantly less methane or greenhouse gas released into the antmosphere ..... Where are the Friends of the Earth when you need them?

Does anyone have an idea what the SP may now rise to with the Calvin news. It appears that with the last two RNS, the SP has fallen back rather than gone forwards. It appears that the share has become a traders share & there is a vey high possibility that this one will drop once the news is out. I hope I an very very wrong as I have a substantial holding !!
When the FTSE rises by 100+ points on Friday with the RNS for MRP and the share only rises 0.75, is that a worry or should I keep the faith, any other thoughts ??

pumben..just look at the market cap compared to other more risky oil/gas plays..thats why i'm holding mine tightly...market makers will have to let it go soon

maestro .... the market cap is hardly anything to get excited about ...... nevertheless, i think this company has great prospects and have even increased my own holding within the last few days - i.e. i don't expect sp to slowly shrivel away!

Guys, thanks for taking the time to answer, I agree, I think long term this share looks a good prospect, still has the Aussie story to develop. Lets hopd for more good news !!!

tm IN usa??? WAS HE THERE TO SEE CALVIN GET HOOKED UP THIS WEEKEND, IS HE IN BED NOW??