HOUSTON, Aug. 12, 2008 (PRIME NEWSWIRE) -- The Meridian Resource Corporation (NYSE:TMR) today announced initial production test results on its Blackstone Minerals A-507 No. 1 ("BSM") well, located in Polk County, Texas in the Company's East Texas Austin Chalk Play. The well was recently tested over a several day period at gross daily flow rates as high as 20 million cubic feet of natural gas per day ("Mmcf/d") and 6,200 barrels of oil per day ("Bopd"). Flowing tubing pressure was measured at approximately 1,300 pounds per square inch ("psi") through an open choke. The well was drilled vertically to approximately 13,000 feet then added two horizontal laterals. The first lateral extends approximately 5,400 feet in length with the second extending approximately 6,200 feet for a total wellbore exposure in the Austin Chalk of 11,600 feet.
The dual lateral well was placed on production shortly after the start of the test, and 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 well is currently producing between 11 and 17 Mmcf/d into sales relative to pipeline pressure constraints, in addition to approximately 4,200 Bopd. 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. However it can be noted that the initial test rate for this well is one of the best in this area. This well is located approximately 5 miles southeast of Leggett, Texas. Meridian owns approximately 38% working interest in this well (26% net).
A second well in this area, the Davis A-388 No. 1, recently reached total depth on the second horizontal lateral section at a depth of approximately 19,000 feet MD. Currently a liner is being set in the second lateral in order to complete the well, and is scheduled to be tested in the coming weeks. The Company has approximately 45% working interest in this well (31% net) which is located approximately two miles to the northwest of the BSM A-507 No. 1 well.
The Company's Triton rig was moved off the BSM A-507 well and is being deployed to drill the Sutton A-574 No. 1 well. This dual horizontal lateral well is located approximately two miles due north of the BSM A-507 No. 1 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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