The Meridian Resource Corporation says that its Delacroix No. 1 well in the Bayou Gentilly area (southwest of the Biloxi Marshland area), has been returned to production after repairs to a major pipeline were completed.

The well was shut-in during early August, 2007 when the major pipeline system was shut-in because of an explosion that occurred on a downstream production platform. The Pipeline and Hazardous Material Safety Administration released the pipeline for gas transmission in the area of the Company's Delacroix No. 1 well on November 27, 2007 and the well was brought back on-line at a net rate of approximately 3 million cubic feet of natural gas equivalent per day ("Mmcfe/d").

No reserves were lost or impacted as a result of the temporary shut-in, although full-year production was impacted by approximately 350 Mmcfe. The Company stated that the loss of production was an important, but not material, event and that the reduction in overall production for this period did not impact 2007 capital spending or its scheduled drilling activities.

In the Company's Austin Chalk play in Polk County, Texas, the outside operated Bear Creek No. 1-H well was recently completed as a dual lateral and tested in the Austin Chalk formation. Initial gross daily flow rates were as high as 25 Mmcf/d and 2,400 barrels of oil per day ("Bopd").

Flowing tubing pressure was measured at approximately 3,100 psi through an open choke. As the well continues to clean up after drilling, it is currently producing at 7 Mmcf/d and 940 Bopd with a flowing tubing pressure of approximately 5,100 psi on a 17/64th choke. Meridian participated in this well as a result of its large acreage position (over 60,000 acres gross) held in the area. 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.

Meridian holds approximately 7% working interest in this well. In addition, the Company is drilling two dual lateral Austin Chalk wells. The BSM No. 5 well is currently drilling at approximately 13,250 feet, and the Freeman No. 1 is at approximately 12,200 feet. Each well is at, or nearing the point of beginning the first updip horizontal lateral. The Company owns 65% and 84% working interest, respectively in each well, and is the operator.

The Austin Chalk has become an important resource play for the Company and is currently being extended westward into other counties on trend where it is believed to be shallower in depth, thicker in section and produce a higher oil ratio. Expectations of additional drilling in the expanded areas are scheduled for sometime in 2008, based on continued successful results.

Tags: Meridian Resource Corporation