HOUSTON, Dec. 17, 2008 (GLOBE NEWSWIRE) -- The Meridian Resource Corporation (NYSE:TMR) today announced initial production test results on its Blackstone Minerals A-507 No. 2 well, located in Polk County, Texas in the Company's East Texas Austin Chalk Play. The well was recently tested at gross daily flow rates as high as 27.3 million cubic feet of natural gas equivalent per day ("Mmcfe/d"). This rate includes 10.5 Mmcf/d and 2,800 barrels of oil per day ("BOPD"). The well was drilled vertically to approximately 13,100 feet then added two horizontal laterals. The first lateral extends approximately 4,700 feet in length, with the second extending approximately 5,600 feet for a total wellbore exposure in the Austin Chalk of 10,300 feet.
The dual lateral well is still in a "clean-up" of drilling fluids phase with intermittent fluctuations normally experienced during the first several day phases of production for wells similarly drilled and produced in the area. The Company expects that the well will display similar producing characteristics to other Austin Chalk wells in the area, with the typical hyperbolic decline curve from current production levels during the coming months. The Company has approximately 55% working interest in this well (41% net).
The rig that was utilized on this well was moved to drill the dual horizontal BSM A-1011 No. 1 well which is expected to spud this week. Additionally, the BSM A-278 No. 1 well in East Texas is drilling the vertical section of this dual horizontal well and is currently at a depth of approximately 9,700 feet in the well.
In the Weeks Island area, Meridian recently completed drilling and logging the Goodrich-Cocke No. 3 well, located in Iberia Parish. The well was re-entered and sidetracked to approximately 8,000 feet measured depth and logged approximately 160 feet of overall prospective oil pay in the Miocene sand section. The Company has turned the well back over to the Production Operator who will subsequently perforate and test the well in the coming days. Meridian owns approximately 63% working interest (48% net) in this well. Additionally, as previously announced, the Weeks Bay No. 15 well, in the Weeks Island field was tested at a gross daily flow rate of up to 685 barrels of oil per day. Production from the well required construction of a pipeline and production facility tie-ins, which are expected to be completed in the coming weeks. Meridian owns approximately 92% working interest (80% net) in the Weeks Bay well.
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 in Louisiana, Texas, and the Gulf of Mexico. Meridian has access to an extensive inventory of seismic data and, among independent producers, is a leader in using 3-D seismic and other technologies to analyze prospects, define risk, target 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, 2007.
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