With an effective date of January 1, 2018, Meridian acquired 100% of the working interest and became operator of record for a producing 900-acre leasehold in near the community of Niagara, Kentucky. Six of thirty-two existing wells are producing oil, and Meridian plans to grow production by working over and returning the shut-in wells to production. The field produces from shallow (650') Pennsylvanian sandstone and slightly deeper (1650') Upper Mississippian Tar Springs sandstone. Significant development upside exists through infill drilling and waterflood implementation, which Meridian plans to commence in 2019.
With an effective date of April 1, 2018, Meridian acquired 33-1/3% of the working interest and became operator of record for a proven, developed, shut-in 240-acre leasehold southeast of Morganfield, Kentucky. Six existing wells target the Mississippian Cypress and Tar Springs sandstones and have proven further oil accumulation in the Hardinsburg and Waltersburg sandstones. Meridian plans to grow oil production by returning existing wells to production, drilling an infill well targeting the Cypress formation, and waterflooding the Tar Springs formation. Development work is targeted to commence in Q4 of 2018 or Q1 of 2019.
Effective December 1, 2017, Meridian Resources has completed the acquisition of 12 operated wells, 3,419 acres (1,226 acres HBP), and associated gathering systems and right-of-ways in the prolific Albion-Scipio Field of the southern Michigan Basin. Eleven of the acquired wells produce from Ordovician Trenton-Black River formation hydrothermal dolomite, and one produces from a Silurian Niagaran reef. Meridian intends to grow production over the remainder of 2017 and through 2018 by recompleting several wells in proven behind-pipe zones.