Drilling Season Comes Early For Mera.

CALGARY, ALBERTA--(BUSINESS WIRE)--Dec. 14, 1998--(Alberta Stock Exchange:MPR.) This year's drilling season came early for Mera Petroleums Inc. with the spudding of its first well in the south end of the Darwin gas field today.

"We're doing whatever we can to fast-track our south Darwin program," says Mera president and CEO Robert McLeay, "because we have targeted March 15, 1999 for production."

This is the first of a six-well program operated by Mera. As part of the fast-tracking process, the company has already begun design and survey work on a 10 mmcf/d natural gas plant to handle the product when it comes on stream. Mera holds a 69 per cent working interest in the project.

The company is also involved in another five-well drilling program and gas plant expansion that is underway in north Darwin. The existing gas plant will be enlarged from 10 to 20-25 mmcf/d. Mera owns 20 per cent of the northern plant.

To finance these and other ventures, McLeay says, Mera will tap into its approximately $900,000 available cash, an unused line-of-credit, pre-arranged plant financing (via a sale and leaseback) and the proceeds from a $1.25 million private placement now in progress.

"As always we are proceeding with the plan that will yield maximum added value for our shareholders," says McLeay.