Meridian has successfully returned the Wessel 2-6A well in Hillsdale County, Michigan, to production. This well had been shut in since 2012 after being considered gassed out by a previous operator. The well has been back on production for 2 weeks with production holding steady at 65 BOPD and 15 BWPD.
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.
Following the December 1, 2017 acquisition of 12 oil wells in the southern Michigan Basin, Meridian Resources moved quickly to perform a plugback and uphole recompletion of the Gilg 1-2 well in Calhoun County, Michigan. Gilg 1-2, which targets a Silurian pinnacle reef, was originally completed in 2013 in the lowermost portion of the oil column within the Silurian Brown Niagaran reef formation. The original completion cumulatively produced approximately 60,000 barrels of oil before watering out due to a natural water drive. Meridian's recompletion of the well at the end of December 2017 involved setting a cast iron bridge plug above the original perforations, perforating a new interval at the top of the reef formation at approximately 3,100' MD/TVD, and acidizing the new completion before putting the well back on pump on January 4, 2018. Initial 30-day production for the recompletion has averaged 40 BOPD and 120 BWPD.
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.