Orion (is this another disaster?)

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News

17/11/09 18:15 UKREG 03/11/09 13:50 UKREG 02/11/09 17:22 UKREG 02/11/09 16:10 UKREG 30/10/09 07:00 UKREG 30/10/09 07:00 UKREG

14 Feb 2006



today announces that it has signed a lease on the Orion field (100% Working Interest) located in Oakland County, Michigan.

Based on data from earlier wells, the lease contains a proven and probable shut
in reserve of 3 BCF of gas in place with approximately 2.7 BCF recoverable.
The gas content is pipeline quality after treatment and also contains
condensate.

The Niagaran reef was previously drilled in the late 1980's and early 1990's but
was shut in due to hydrogen sulphide emissions and the absence of appropriate
treatment technologies. Meridian's proposed use of 'sulphur treat' towers, a
technology now widely used for this type of gas treatment has been accepted by
the Michigan Department of Environmental Quality (DEQ).

Flow rates on the previous wells averaged between 2 to 4 mmcf per day plus
condensate and Meridian anticipates achieving similar flow rates from its
proposed new well location. The bottom hole location of the new well will remain
the same as the previous wells but will be accessed from the surface via a
directional drilling leg.

The proposed new well location is on a partially used asphalt pit adjacent to a
major gas pipeline.


Anthony Mason, Chief Executive of Meridian said:

'We are delighted to have signed up this significant shut in gas reserve in
Michigan State. Subject to permitting and equipment availability, we expect to
begin drilling operations early in the second quarter of this year.'





13 March 2006



Orion (100)% WI)

Permitting for the Orion asset has commenced and the Company is expecting to
commence drilling operations in the second quarter of 2006.




27 April 2006



Orion (100% WI)

The Company has commenced the permitting process with the State of Michigan DEQ and has recently signed the second 40 acre lease block with the land owner
therefore enabling an 80 acre unit to be established. A survey of the surface location has taken place and steps to enable the relevant insurance coverage to
be put in place have commenced. Drilling activity is likely to commence, based
on permitting and approvals, towards the end of the second quarter.




20 June 2006



Orion, 80% NRI:

Equipment and personal are in place for re-entering the 2.7 to 3 BCF Orion reef.
Re-entry is planned in the week of 14 August 2006. A rig and a directional
drilling unit have been booked accordingly and the Company is currently on
schedule to meet the current timetable.




28 June 2006



In late 2005 Meridian commenced the process for the acquisition of the Orion
lease in Oakland County Michigan. This acquisition was completed in early 2006
on the initial lease position for a cost of $40,000. The Orion prospect consists
of a proven and probable shut in 2.7 to 3.0 BCF reserve. The reef was previously
drilled with 2 wells in 1989 and 1990 but both were shut in due to H2S emissions. Our proposed technical solution was to utilize alternate sulphur treat towers and this proposal was accepted by the Michigan Department of Environmental Quality (DEQ). Additionally, the planned well site is located on an asphalt mining area, and also adjacent to a Michigan Gas Storage Company Pipeline. Hence, a direct tap into the line can be made saving time and money. We intend to drill this well shortly following completion of the permitting process.





1 Aug 2006



additional drilling at Orion being undertaken currently in preparation for re-entry in
approximately the same timescale.






8 Sept 2006


Orion, Oakland County, Michigan

The leases for the Orion prospect were acquired by the Company in January and
February of 2006. The Orion, Michigan prospect will be drilled in late October
2006. The Orion prospect contains a shut in reserve of some 2.1 Bcf Probable
Reserves.




19 Dec 2006


Additionally, the Company is due to drill the Orion well in Michigan with work
commencing in January.




6th Feb 2007


.
Total Depth (TD) of 4,103 feet was reached on the Orion 36 well on Saturday 3
February 2007, after a directional leg kicking into the Niagaran reef target.


The well casing was set yesterday, Monday 5 February, and the Company is
currently preparing the Completion AFE, which will include any stimulation or
perforating that may be required, with plans to flow test the well during the
week of 12th February. The well site is adjacent to an existing pipeline
operated by local utility CMS Energy ("CMS"), and CMS has already agreed to
purchase the gas. The actual hook up will take place following the construction
of the surface facility.



Following a review of the drilling logs, the well has shown a total net pay of
111 feet. Within the 111 feet of net pay, 33 feet of true vertical net pay were
at 4.5% porosity and the remaining 78 feet of true vertical net pay ranged
between 6% and 7.5%. These porosity readings are encouraging as they are
comparatively high for a Niagaran Reef in the Southern reef trend, which
traditionally has far lower levels of porosity.



Throughout the directional kick the well bore correlated almost exactly with the
original Fons well, which flow tested in excess of 2mmcfpd, and similar results
are anticipated with the above porosity characteristics. The Fons well was
closed in the 1980s due the levels of hydrogen sulphide (H2S), but the area is
now regarded by Meridian as safe to drill and extract due to the application of
new technology now available to deal with the H2S content.



Once the flow test is completed the Company will focus on the surface facility
required to remove the H2S from the gas. Two specific options are being
examined, and the Company is expediting its processes to get the well on line as
soon as possible. The first option is a closed circuit fluid system, while the
second system is a more conventional sulphide-treatment system utilising
alternate towers.



Tony Mason, CEO of Meridian Petroleum, said:

"Given the aerial extent of this reef of at least 200 acres and the size of the
net pay zone, we are optimistic regarding the potential resource at Orion 36.
We are mapping the reef and will appraise the Gas In Place (GIP) estimate once
we have conferred with ECL Scott Pickford."





22nd Feb 2007


The Orion 36 well ( MRP 75% net revenue interest) located in Oakland County,
Michigan was flow tested on Monday 19th February. The Shut in Tubing Pressure
(SITP) was approximately1,360 pounds per square inch (PSI), and the well flowed
in excess of three hours on a 2 7/8 inch choke at a flowing tubing pressure of
approximately 1,350 PSI. This would indicate a potential flow rate in excess of
3-4 million cubic feet per day (mmcfpd).

A bomb was dropped to gather Bottom Hole Pressure (BHP) data. It is anticipated
that, based on flow data and reservoir response thus far, the data collected
will be much the same as that for the original Fons and Jacobs wells.
Comprehensive BHP data is expected by the end of the week.

Based on all the data gathered to date, this well is considered by the Board of
Meridian to be likely to perform significantly in excess of Directors'
expectations. Work will commence shortly on the construction of the Hydrogen
Sulphide (H2S) removal system and the direct tie into the CMS Energy-operated
pipeline adjacent to the well site.