Meridian Reports Test Results of Sutton A-574 No. 1 Well in East Texas Austin Chalk Play

The Meridian Resource Corporation announced initial production test results on its Sutton A-574 No. 1 well, located in Polk County, Texas in the Company’s East Texas Austin Chalk Play. The well was recently tested at gross daily flow rates as high as 35.4 million cubic feet of natural gas equivalent per day. This rate includes 18.6 Mmcf/d and 2,800 barrels of oil per day. Flowing tubing pressure was measured at approximately 1,300 pounds per square inch through an open choke. The well was drilled vertically to approximately 12,200 feet then added two horizontal laterals. The first lateral extends approximately 5,200 feet in length, with the second extending approximately 6,500 feet for a total wellbore exposure in the Austin Chalk of 11,700 feet.

The dual lateral well 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 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. The Company has approximately 63% working interest in this well (42% net).

The rig that was utilized on this well was moved to drill the dual horizontal BSM A-278 No. 1 well which was spud this week. Additionally, the BSM 507 No. 2 well in East Texas has reached total depth on its second lateral and is being completed. Meridian expects that the well will be tested before the end of the year.