EXHIBIT 99.1
(BW) (MERIDIAN-RESOURCE) (TMR) The Meridian Resource Corporation Announces 1998
Drilling Activities; March 31, Record Daily Production Rate of 71.2 MMCFE/D Up
22.7 Percent from Year-End 1997
Business Editors
HOUSTON--(BUSINESS WIRE)--April 6, 1998--The Meridian Resource Corporation
(NYSE:TMR) announced that its recent exploration, exploitation and developmental
activities have resulted in substantial increases to net daily production since
year-end. Dailey Production Rates have increased from 55 MMCFE/D at year-end
1997 to approximately 70 MMCFE/D at the end of the 1st Quarter 1998.
Successful completion in the offshore area have been primarily responsible
for the increases, including:
-- East Cameron Block 349-350 Well No. A-3 which logged 89 feet of net
pay and is currently producing 13,745 MCFE/D (4,295 MCFE/D net to
Meridian)
-- East Cameron Block 349-350 Well No. A-4 which logged 77 feet of net
pay and is currently producing 10,692 MCFE/D (3,341 MCFE/D net to
Meridian)
-- East Cameron Block 349-350 Well No. A-5 which logged 102 feet of net
pay in 4 sands with current production of 5,954 MCFE/D (1,860 MCFE/D
net to Meridian)
-- East Cameron Block 332 Well No. A-2 recompleted to the PL-A sand
which is currently producing 17,200 MCFE/D (2,752 MCFE/D net to
Meridian)
In addition, several discoveries are awaiting completion and should
further increase daily rates during the 2nd Quarter include:
-- East Cameron Block 332 Well No. A-9 currently re-completing to the
L-5 sand
-- East Cameron Block 332 Well No. A-16; Drilled to a depth of 17,133
TVD in December, 1997 Logged 114 Feet of net pay. Completion
operations underway.
-- Galveston Bay State Tract 329 (Monte Carlo) Well No. 1; Drilled to a
depth of 16,175 TVD in December, 1997. Logged 30 feet of net pay.
Completion operations underway.
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-- South Timbalier Block 139 OCS-G 18040 No. 1 (ST1); Drilled to a
depth of 17,271 MD in January, 1998. Logged 56 feet of net pay.
Cassion set, waiting on completion rig.
Current drilling activities are comprised of several wells in the onshore,
transition zone and offshore arenas, including:
-- West Cameron S.L. 15710 Well No. 1, Logging at 15,000 feet
-- Galveston Bay State Tract 283 Riviera Unit Well No. 1; Drilling at
18,020 feet
-- Ship Shoal Block 261 OCS-G 14506 Well No. 2; Drilling at 7,386 feet
-- East Matagorda Bay Unit Well No. 4; Moving in rig.
The Company's major offshore development project at South Timbalier
290/291 is progressing with platform delivery scheduled for early in the
Fourth Quarter of 1998. Development drilling from the 8-slot platform
should commence near the end of 1998 to develop production established by
the OCS-G-16454 No.1 exploratory well drilled to 15,830 feet in 1996. In
addition to the discovery well, a six-well development program is
currently being filed with the MMS.
Meridian's Capital Budget for 1998 exploration and development activities
has been set at approximately $125,000,000 including new opportunities
identified on properties to be acquired in conjunction with the recently
announced merger with the onshore Louisiana business assets of Shell Oil
Company.
Since Meridian and Shell signed the Letter of Intent in December 1997 and
the Definitive Agreement and Plan of Merger in March 1998, Shell has
participated in three significant wells, one of which, the Stone Provost
Cyr No. 7 at Weeks Island Field, has been completed for 2,000 BOPD (Shell
W.I. 28 percent). The two other wells include the Gueydan Bourque No. 1
(Shell W.I. 50 percent) at West Gueydan field, currently drilling at
10,922 and the Stone Provost Cyr No. 8 (Shell W.I. 28 percent) currently
drilling at 11,220 feet also at Weeks Island.
The Company commented that it and Shell are pursuing an interim operating
agreement whereby Meridian may assume operations immediately and through
the close of the acquisition and merger, which is expected after a
Meridian shareholder vote tentatively set for late in the second quarter.
Management plans to discuss its current operations and aspects of the
Shell Transaction during a conference call scheduled for 10:00 a.m. CDT on
Tuesday April 7, 1998.
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The Meridian Resource Corporation is an independent oil and natural gas
company engaged in the exploration for and development of oil and natural
gas properties utilizing 3-D seismic technology, primarily in south
Louisiana, southeast Texas and offshore Gulf of Mexico. Meridian's office
is located in Houston, Texas and the stock is traded on the New York Stock
Exchange under the symbol "TMR". For additional information, visit our
website at www.TMRC.com or our E-mail address at TMRC@ix.netcom.com.
Certain of the foregoing statements may be deemed "forward-looking
statements" within the meaning of the Securities Exchange Act of 1934.
Although Meridian believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no assurance that
such expectations will prove to have been correct. Certain risks and
uncertainties inherent in Meridian's business are set forth in Meridian's
filings with the Securities and Exchange Commission. These risks include
(i) the continued production from existing wells at their current or
projected levels, (ii) price changes for oil and gas, (iii) the ability of
the Company to successfully complete those wells that have been logged and
reflect potential production, (iv) the ability of the Company to
successfully complete and produce those reserves scheduled as
"non-producing" or "undeveloped", (v) the ability of the Company to
acquire leases and timely drill its exploratory prospects, (vi) risks
regarding estimates of reserves, (vii) production risks, (viii)
governmental regulations and (ix) general risks regarding the exploration
for, and production of, oil and gas reserves.
CONTACT: Meridian Resource Corporation, Houston
Joseph A. Reeves, Jr., Michael J. Mayell, or
P. Richard "Dick" Gessinger/Meridian, 281/558-8080
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