Houston, TX - The Meridian Resource Corporation recently announced initial production test results on its Blackstone Minerals (?BSM?) No.
1 well, located in Polk County, Texas in the Company?s East Texas Austin Chalk/Woodbine Play. The well was recently tested over a two day period at gross daily flow rates as high as 27 million cubic feet of natural gas per day (?
Mmcf/d?) and as high as 1,500 barrels of oil per day (?BOPD?
) according to company. Flowing tubing pressures were measured at ranges between 7,500 pounds per square inch (?psi?
) through an 18/64th-inch choke and 2,400 psi through a 48/64th-inch choke. The dual lateral well was placed on production Monday evening and is 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. Pipeline constraints during the clean-up operations prevent the well from being produced at more than 20 Mmcf/d. The well is currently producing 18-20 Mmcf/d along with an additional 1,000 to 1,500 BOPD.
The Company?s working interest in the well is approximately 84% before payout (57% net) and 71% after payout (50% net), subject to terms of unitization, lease royalties, acreage and farmout agreements previously negotiated with the third party working and mineral interest owners in the well adds the company. Company believes that the well was drilled vertically to approximately 13,000 feet with two horizontal laterals and is on trend with other Austin Chalk wells in the area which are located approximately nine miles to the east.
The Company stated that, while this is an excellent test, it is expected 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. The Company anticipates mobilizing two rigs (one rig for a one-well drilling ?window?
and the second for an indeterminable time period at the discretion of the Company) into the area beginning in December 2006 to commence the drilling of additional laterals in at least two of three of the existing vertical wells that were drilled through the Austin Chalk during early 2006. The first well scheduled for the laterals is the Katherine Leary No. 1 well which is located northeast of the current well, followed by either the BSM No.
2 or No. 3 well.
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