Meridian Announces New 1999 Drilling Results; `Making Mergers More Than a Purchase of Just Barrels'.

HOUSTON--(BUSINESS WIRE)--Nov. 12, 1999--

The Meridian Resource Corporation (NYSE:TMR) released the results of 1999 exploration and development activities through Nov. 8, 1999. The Company reported that, since its purchase of substantially all of Shell Oil Company's properties in south Louisiana on June 30, 1998, it has drilled and successfully completed 24 of 36 wells, (or 67%) with five additional wells in various stages of drilling or completion. This drilling activity resulted in a unit development cost less than $.53 per thousand cubic feet of (Mcfe) gas equivalent (based on drilling and completion costs and Meridian's internal reserve estimates). The Company stated that it began the period with approximately 281 billion cubic feet of natural gas equivalent (Bcfe) reserves, produced approximately 61.8 Bcfe, expended approximately $66.9 million on drilling activities, added gross reserves, net of sales and revisions, of approximately 135 Bcfe or 48%, and ended the Sept. 30, 1999 period with approximately 354 Bcfe (61% natural gas) for a net increase of 73 Bcfe (26%), resulting in a replacement of reserves of approximately 218% for the period of June 30, 1998 through Sept. 30, 1999. During this same period, the Company reduced lifting costs on all properties to a low $.31-.35 per Mcfe.

The Company's Chairman and Chief Executive Officer, Joseph A. Reeves Jr., stated, "The results of the Company's drilling activities are a confirmation of Meridian's strategy to purchase more than just barrels when it purchased all of Shell Oil's south Louisiana producing fields and exploration prospects, almost all of which were covered by 3-D seismic data. As a result, Meridian was able to hit the ground running with new exploration and development opportunities in addition to those held by the Company. The Weeks Island discovery in 1998 and subsequent development wells added significantly to the Company's daily producing rates from these mature fields and provided Meridian with the ability to drill low-risk, high potential wells during a volatile price environment and, at the same time, continue with its exploration program that lead to the discovery of its North Turtle Bayou/Ramos Field in March of 1999. Of significance is the fact that reserve additions were recognized in every category -- Proved Developed Producing, Proved Developed Non-Producing, and Proved Undeveloped -- not merely moving reserves from one category to another which would be at the expense of future reserve growth. Combined with the Shell assets, Meridian has established a solid position in its focus area with a mix of low risk development, exploitation and exploration assets that provide the Company with substantial growth opportunities through the drill-bit without the need to purchase additional production to replace reserves."

Meridian's drilling activities have been focused in Weeks Island Field, North Turtle Bayou/Ramos Field, Thornwell Field, Riceville/West Gueydan Field, South Deep Lake and Barataria Bay. In addition to current activities, the Company plans to conduct further drilling operations in its Kings Bayou Field, South Timbalier Block 139 Field, and the Turtle Bayou area, with capital spending approximating $16 million during the fourth quarter. Sales tie-in operations are currently in progress on three wells which have been drilled, logged and completed and are expected to be on production within five to seven days. The Company believes these completions will add approximately 10 million cubic feet of gas equivalent per day net to its interest and current daily production of approximately 131 million cubic feet of gas per day.

-- North Turtle Bayou Field, Assumption Parish, La. (Thibodaux

well completed and on production; Breaux well logged and

cased, drilling ahead)

-- Thibodaux No. 3 Well: Meridian has successfully

drilled, logged and placed on production the C. M.

Thibodaux No. 3 well, a development well offsetting the

discovery well, the C. M. Thibodaux No. 1 well, in its

North Turtle Bayou/Ramos Field. The No. 3 well was

drilled as a replacement well for the C.M. Thibodaux

No. 2 well which encountered well control problems

during late June 1999 and was subsequently plugged and

abandoned. The Thibodaux No. 3 well was drilled to a

depth of 18,402 feet, encountering over 180 feet of pay

in two separate Operc-aged sands below 17,500 feet. The

initial completion has been made in the Operc "B" sand,

which logged approximately 129 gross and net feet of

pay from 17,685 feet to 17,814 feet.

The Company tested the No. 3 well at a stabilized rate

of 14.3 million cubic feet of gas per day (MMcf/d) plus

298 barrels of condensate per day (BCPD) and no water,

at a flowing tubing pressure of 11,466 pounds per

square inch (psi) on a 17/64-inch choke. Bottom hole

shut-in pressure was calculated at approximately 12,440

psi. The Company has conducted test operations into

existing production facilities and has now placed the

well on production. A 12-inch flow line has been

installed by Meridian in the area for this and future

wells' production, which should allow for production

capacity at the facility of up to 100 MMcfd/d of gas

and 10,000 BPD. Based on current measurement and

depending on reservoir characteristics, Meridian

expects to produce the well at an initial rate of

approximately 12 MMcfd/d plus associated condensate

expected to approximate an additional 250 BCPD. These

rates will add to production from the C.M. Thibodaux

No. 1 well bringing gross field production to

approximately 30 MMcfe/d (14 MMcfe/d net).

Meridian is the operator of the prospect and

participated in the Thibodaux No. 3 well for

approximately 71% Working Interest. Additional

interests in the well are held by Burlington Resources 

Inc. (NYSE:BR) and private investors.

-- Norman Breaux No. 1 Well: The Norman Breaux No. 1 well

is an east offset to the Thibodaux Unit in a separate

fault block. An electric log was run to a depth of

18,497, indicating apparent oil and natural gas

productive sands in the Operc. "A" and "B" zones which

were encountered between 17,500 feet and 17,750 feet. A

5 1/2inch liner was set to 18,497 feet to protect these

sands, with plans to drill to a target depth of 19,500

feet to test the prospective Cris. "A" sand. Drilling

has resumed with the well currently drilling below

18,750 feet. It is anticipated that additional wells

will be drilled targeting additional Operc. sands in

this project area in the near future. Meridian's

Working Interest in the Breaux No. 1 well is

approximately 91% with the remainder held by private

investors.

The North Turtle Bayou/Ramos Field comprises a focus area in which the Company intends to concentrate exploratory and developmental budget capital during 2000 and 2001. The Company's Working Interest in this area ranges from an average of 50% to as much as 94% in various prospects.

-- Weeks Island Field, Iberia Parish, La. (Fifth development

well on production, with two additional wells drilling)

-- Weeks Island State Unit A-24 Well: Meridian continues

to develop this very prolific salt dome where the

Company made a new discovery that has developed a

significant part of the Company's new reserves

immediately after acquiring the field from Shell Oil in

June 1998. Five producers have been drilled by the

Company to date, with the WISUA-24 being the last to be

brought on production during August 1999. Current

production for this shallow test development well is

275 BOPD, which brings the total field production to

approximately 13,800 BOEPD, up from 7,200 BOEPD when

the Company took over operations from Shell. Meridian

has identified approximately 15 new projects within

this field which are scheduled to begin drilling, with

the State Lease No. 500 well drilling and at least 4-6

additional wells scheduled under the year 2000 capital

budget. As operator of the majority of the field

production, Meridian owns a 97% Working Interest in the

"U" sand Unit and between 55% and 75% in most of the

remaining prospective area.

Other current activity includes the Myles Salt No. 1

well, which is currently drilling below 9,500 feet with

a target depth of approximately 12,500 feet. Stone

Energy is the operator and owns a 25% Working Interest

with the Company owning a 75% Working Interest. The

well has both exploratory and developmental targets.

-- Rockefeller/South Deep Lake, Cameron Parish, La.

(Rockefeller producing and production being evaluated)

-- Rockefeller No. 1 Well: The SL 16067 (Rockefeller) No.

1 well was drilled to a total depth of 20,000 feet

during April 1999. Because of the extraordinary

downhole pressure environment in this directional well

bore and the need to protect potentially productive

sands, Meridian and Burlington elected to set

production casing prior to conducting an electric log

over the entire section of the open hole. Cased-hole

logs were conducted which indicated 185 feet of

apparently productive sands between 18,370 and 18,766

feet. Production testing of the middle sands between

18,508 feet and 18,550 feet rendered up to 13.5 Mmcfe/d

gas and approximately 200-250 barrels of water per

million cubic feet of gas. To accommodate the water

production, a salt-water disposal well was drilled and

completed during June 1999. Subsequent production

testing was conducted which resulted in the decision of

the companies to perforate the upper sand package

between 18,372 feet and 18,398 feet. The well was

thereafter placed on production at approximately 5

Mmcfe/d with some apparent restrictions in the gas flow

and is currently being monitored to ascertain what, if

any, operations should be conducted to increase the gas

rate from the upper sand. It is anticipated that these

operations will be commenced in the next 30 - 60 days.

Meridian holds a 47% Working Interest in this field and

is the Operator with Burlington Resources Inc.

(NYSE:BR) holding a 50% Working Interest.

-- Riceville/West Gueydan Field, Vermilion Parish, La. (Second

exploration well on production with others scheduled for

2000)

-- Burnie Benoit No. 1 Well: This is the second well in

this Shell exploitation project area which was

developed by Meridian after the June 1998 Shell

purchase. The well was drilled to a total depth of

16,020 feet and logged productive sands between 14,700

feet and 14,750 feet. The well was placed on production

during June 1999 after testing 5.3 MMcfd and 396 BOPD

on a 12/64ths choke at 8,145 psi. Meridian holds a

25.125% Working Interest with Key Production owning a

29% Working Interest, and Enron Capital and Trade and

other private interests owning the remaining Working

Interest. The Company anticipates additional

development and exploratory prospects in this project

area, which is adjacent to Meridian's East Lake Arthur 

and Thornwell projects.

-- South Thornwell Field, Jefferson Davis Parish, Louisiana.

(Third exploration well placed on production with one well

drilling and additional wells scheduled for fourth quarter

and 2000)

-- Potter 33 No. 2 Well: The Potter 33 No. 2 well was

drilled to a total depth of 11,872 feet, completed and

tested at rates of 18.312 million cubic feet of gas per

day (MMcfd/d) plus 540 barrels of condensate per day

(BCPD) and no water. Flowing tubing pressure was 7,042

psi on a 20/64th-inch choke from perforations between

11,756 feet and 11,772 feet in the Marg Idio

(Oligocene) sand. The producing horizon contains 80

feet of gross and net pay. The well was placed on

production on November 10, 1999. Meridian holds a 30%

Working Interest with other Working Interest held by

Enron Trade and Capital and private investors.

The addition of the Potter 33 No. 2 well, brings total

production in this Meridian operated South Thornwell

Field to 36 MMcfd/d and 1050 BCPD from three wells--the

Guidry 21 No.1 Well completed November 6, 1998

(Meridian, 30.33% Working Interest), the Lacassine 33

No. 1 Well completed March 2, 1999 (Meridian, 23.15%

Working Interest) and the Potter 33 No. 2 well. A

fourth location, the Potter No. 33 No. 1 Well is

currently drilling below 11,000 feet with a target

depth of 12,000 feet.

-- Saturday Island/Mystery Island Field, Jefferson Parish,

Louisiana.

-- SL 15858 No. 1 Well: The first well in this new

discovery field, the SL 15858 No. 1 was completed on

January 25, 1999 and is currently producing at a rate

of 2.9 MMcfd/d plus 968 BOPD for a total of 8.7

Mmcfe/d. Meridian holds a 21% Working Interest in the

LL&E Fee No. 1 well and a 30% Working Interest in the

SL15858 well. Burlington holds a 50% Working Interest

and private investors hold the remainder.

-- LL&E Fee No. 1 Well: The LL&E Fee No. 1 well was tested

during August 1999 and produced flow rates of 9.8 MMcfd

and 69 BCPD from the lowest of three productive

intervals containing approximately 73 feet of net oil

and gas pay in the interval between 10,070 feet and

11,111 feet. The well is the second test for Meridian

and its partner, Burlington Resources, Inc. (NYSE: BR),

operator of the well, based on the Barataria Bay 3-D

seismic shoot completed in 1998.

-- West Cameron Block 76. (Two wells brought on production with

more wells to be drilled in 2000)

-- West Cameron Block 76, B-4 Well: During the first

quarter of 1999, Meridian participated in the West

Cameron 76 well No. B-4 Marg A. discovery well in the

Gulf of Mexico, which encountered over 200 feet of

productive Moicene sand below 14,700 feet measured

depth.

-- West Cameron Block 76, B-5 Well: Recently, the West

Cameron Block 76, B-5 well, a development well,

encountered more than 217 net feet of productive Marg.

A. sand between 16,525 feet and 17,165 feet measured

depth.

The wells were brought on production during June 1999 and October 1999, respectively, at rates of 17.1 MMcfd with 94 BCPD (B-4 well) and 20.4 MMcfd with 151 BC (B-5 well). Meridian holds a 2.625% Working Interest in the field. BHP Petroleum (Americas), Inc. operates the well with a 33.76% Working Interest, while other participants include CNG Producing Company (40%), The Houston Exploration Company (12.375%), and Ridgewood Energy (11.24%).

-- Chocolate Bayou field, Brazoria County, Texas. (Andreau

production in new fault block adds new reserves and

production)

-- TMRX I. P. Farms No. 3-X Well: The No. 3-X well was

re-completed in the 12,700 foot Andrau sand in a new

fault block at the Company's Chocolate Bayou Field

south of Houston near Alvin, Texas. Production tests on

the I.P. Farms No. 3-X well resulted in flow rates of

3.2 MMcfd and 96 BOPD at 5,100 psi FTP on an

8/64th-inch choke. This is the Company's second Andrau

completion in the field. The prolific Andrau sand has

produced over 600 BCF of gas in other fault blocks in

the field. Meridian, as operator, holds a 47% Working

Interest. The remainder is held by Phillips Petroleum

(NYSE: P) 39% and other private investors.

Certain of the foregoing statements may be deemed "forward-looking statements" within the meaning of the Securities Exchange Act of 1934. 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 which can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices. The Company's forward-looking statements also are based upon reserve estimates that are inherently imprecise and subject to all risks associated with reservoir engineering and the process of estimating reserves, which are more fully summarized in the Company" Annual Report on Form 10-K for the year ended December 31, 1998. The Company's forward-looking statements included in this press release assume that there will be no material declines in oil and gas prices, no unexpected drilling conditions or events that curtail production or drilling activities or cause initial test and production results to not be indicative of future well performance, and no downward revisions to existing reserve estimates, as well as other assumptions set forth in the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 1999.

The Meridian Resource Corporation is an independent oil and natural gas company engaged in the exploration for and development of oil and natural gas properties utilizing 3-D seismic technology, primarily in south Louisiana, southeast Texas and offshore Gulf of Mexico. Meridian's office is located in Houston, Texas and the stock is traded on the New York Stock Exchange under the symbol "TMR."