HOUSTON, April 17, 2008 (PRIME NEWSWIRE) -- The Meridian Resource Corporation (NYSE:TMR) today announced results of recent field exploitation and development activities, increased production and reserve additions. Recent activities in several of the Company's south Louisiana fields have proven successful in scope and targets to arrest declines in production rates while the Company focuses on exploration and development of other play opportunities.
Louisiana
The Company's south Louisiana legacy assets continue to deliver additional production rates and reserves. In the Turtle Bayou field, workovers and enhanced production activities recently added approximately 3.4 million cubic feet of natural gas equivalent per day ("Mmcfe/d") gross (2.1 Mmcfe/d, net) to the Company's daily producing rate.
In the Ramos field area, the Company recompleted the Avoca 8-1 well to the Big Hum 2 formation which tested at a daily flow rate of 2.6 Mmcfe/d (1.8 Mmcfe/d, net). Flowing tubing pressure was measured at approximately 4,000 psi through a 10/64ths-inch choke. The Company owns approximately 92% working interest in the well.
In the Weeks Island field, the Company drilled a sidetrack to test multiple sands under the salt overhang in its Myles Salt No. 27 well. The well was drilled to approximately 11,400 feet, measured depth ("MD"). Logs from the well indicated approximately 132 feet of pay in the M, O, P and Q sands, extending field pay and adding new reserves and rate. The well was tested and is currently producing from the Q sand at a gross daily flow rate of 2.1 Mmcfe/d (1.1 Mmcfe/d, net). Flowing tubing pressure was measured at approximately 2,600 psi through an 8/64th inch choke. In this prolific oil producing field, the Company has identified several additional well locations, re-completions and workovers that will serve to enhance reserves and production during 2008.
Recently, the Company has leased positions in the north Louisiana region targeting multiple prospective formations, including the Cotton Valley and Haynesville shale. The Company has budgeted for a minimum of two wells for this region for 2008.
Texas Austin Chalk
Initial production test results on the Black Stone Minerals No. 5 well, located in Polk County, Texas in the Company's East Texas Austin Chalk Play resulted in gross daily flow rates as high as 18.1 Mmcfe/d (8.8 Mmcfe/d, net). The gross amount includes 960 Bopd. The well was drilled vertically to approximately 13,000 feet, then added two horizontal laterals, each approximating 5,500 feet. The Company expects that the well (which was tested over three weeks ago) will display similar producing characteristics to other Austin Chalk wells in the area, with the typical hyperbolic decline curve from these production levels, during the coming months. The well is currently producing at an average rate of 4.1 Mmcfe/d (2.0 Mmcfe/d, net). Meridian owns approximately 65% working interest in this well.
Additionally, in this area, the Company has reached total depth on, and is currently completing the Freeman No. 1 well. The dual lateral well was drilled vertically to approximately 13,000 feet with the horizontal laterals extending approximately 4,000 feet and 5,600 feet, respectively. It is anticipated that completion operations will be finished within the next seven days, after which the well will be tested. Meridian owns approximately 84% working interest in this well.
Construction on the Company's new rig, the Triton, has been finished, and was recently moved onto its first East Texas Austin Chalk location, the Davis A-388 well. The well is located approximately four miles north of the BSM No. 5 well and is currently drilling the vertical section at a depth of approximately 8,000 feet. The Company has approximately 45% working interest in this dual horizontal lateral well.
The Company and its joint venture partners have increased their leasehold position to approximately 92,000 gross acres (100+ potential well locations) in the East Texas Austin Chalk play. In addition, the Company has expanded its focus to southwest Texas where it has acquired approximately 20,000 acres in two counties. The Company plans to maintain a two-rig drilling program in the Austin Chalk play until it is fully developed.
The Meridian Resource Corporation is an independent oil and natural gas company engaged in the exploration, exploitation, acquisition and development of oil and natural gas primarily in Louisiana and Texas, including on and offshore Gulf Coast regions. Meridian has access to an extensive inventory of seismic data (over 8,000 square miles) and, among independent producers, is a leader in using 3-D seismic and other technologies to analyze prospects, define risk, target, drill and complete high-potential wells for exploration and development. Meridian is headquartered in Houston, Texas, and has a field office in Weeks Island, Louisiana. Meridian stock is traded on the New York Stock Exchange under the symbol "TMR".
Safe Harbor Statement and Disclaimer
Statements identified by the words "expects," "projects," "plans," and certain of the other foregoing statements may be deemed "forward-looking statements." Although Meridian believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices. These and other risks are described in the Company's documents and reports, available from the U.S. Securities and Exchange Commission, including the report filed on Form 10-K for the year ended December 31, 2006.
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