Meridian provides operations update

Meridian Petroleum plc, the US-focused oil and gas company provides the following update on its strategy and operations in advance.

After a record month in January, production from Orion 36 has continued to increase in February. Average daily production for the month so far is 3.92mmcfd with a new peak production level of over 4mmcfd on several days. Production of natural gas liquids has continued at the high level established in January, averaging 53bbls/day in February to date.

The Company also benefited from better than expected gas prices in January and gross revenue in the month exceeded $1 million, with the Company’s share after royalties and taxes exceeding $700,000.

The second change-out of the Sulfatreat material is underway. The Company is working with the local authorities in Michigan to minimise inconvenience to the local community from odours, and the change-out is consequently taking place over an extended period. Following the first change-out in November 2007, the Company invested some $200,000 in improvements to the processes and equipment, in particular installing a polishing sponge. This investment has produced an immediate return, extending the life of the Sulfatreat material to well over 200mmcf of production and enabling the second change-out to take place without interruption to production.