Meridian Announces Two New Discoveries; Updates Property Sale Activity.
HOUSTON--(BUSINESS WIRE)--May 15, 2000
The Meridian Resource Corporation (NYSE NYSE
See: New York Stock Exchange :TMR TMR
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TMR 1 Trainable mentally retarded 2 Transmyocardial revascularization, see there ) today announced the test results of two new exploration wells recently completed in the Thornwell Field, Jefferson Davis Parish, La. Based on production tests conducted on the Lacassane 33-2 and the Guidry 16-1 ST wells, it is expected that the gross (8/8ths) production rate from the field will increase to approximately 85 million cubic feet of gas equivalent per day (MMcfe/d) after the two wells are turned into the sales line (approximately May 15, 2000). To date, Meridian and its partners have successfully drilled ten wells in the field since its discovery in November 1998.
The Lacassane 33-2 well tested the Marg. Idi sand from 91 feet of perforations between 11,732 feet and 11,859 feet at a gross flow rate of 14.9 MMcfd plus 739 barrels of oil per day (BOPD BOPD Barrels of Oil Per Day
BOPD Bataan Ocean Petroleum Depot ) at a flowing tubing pressure (FTP FTP
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The Guidry 16-1 ST tested a separate accumulation in the Marg. Idi sand from 67 net feet of perforations in the gross interval between 11,506 feet and 11,608 feet. The flow rate was gauged at 14.6 MMcfd plus 201 BOPD at 5,225 psi FTP on a 20/64th- inch choke; SITP was 5,800 psi. Collectively, the new completions totaled an increase to the field production of 29.5 MMcfd and 940 BOPD, or 7.6 MMcfe/d net to Meridian's interest, bringing the Company's total net production from the field to 17.6 MMcfe/d.
Meridian and its partners, Manti Operating Company operating company
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In other areas, Meridian holds approximately a 27% working interest in the UPRC UPRC University of Puerto Rico-Cayey South Timbalier Block 139 No. 2 well which is currently drilling below 17,700 feet with a target depth of 18,250 feet. The well is testing additional amplitude related objectives deeper than the producing zones in the ST Blk 139 No. 1 well. In Turtle Bayou, drilling is proceeding below 14,500 at the CL&F No. 59 well (97% working interest) with a target depth of 16,000 feet in the Cris. I. aged "LL" sand. Additional exploration activity is expected to begin in Weeks Island in early June with the commencement of drilling at the Brett prospect (72% initial working interest), a 6,500 foot test for normally pressured oil sands trapped against the salt on the north side of the field.
The property divestitures previously announced are proceeding on schedule. Sales of two property packages have been completed and others are anticipated following the completion of contract negotiations and Due Diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. . Proceeds are being applied to reduction of the Company's bank debt and building cash reserves Cash reserves
See: Cash investments
Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. . The Company does not anticipate announcing the results of the sales until all of the sales are complete.
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 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 Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico
Golfo de Mexico
Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . Meridian's office is located in Houston and the stock is traded on the New York Stock Exchange New York Stock Exchange (NYSE)
World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "TMR."