MeridianDecember 6, 2007: In the Company’s Austin Chalk play in...

Meridian

December 6, 2007:
In the Company’s Austin Chalk play in Polk County, Texas, the outside operated Bear Creek No. 1-H well was recently completed as a dual lateral and tested in the Austin Chalk formation. Initial gross daily flow rates were as high as 25 Mmcf/d and 2,400 barrels of oil per day (“Bopd”). Flowing tubing pressure was measured at approximately 3,100 psi through an open choke. As the well continues to clean up after drilling, it is currently producing at 7 Mmcf/d and 940 Bopd with a flowing tubing pressure of approximately 5,100 psi on a 17/64th choke. Meridian participated in this well as a result of its large acreage position (over 60,000 acres gross) held 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. Meridian holds approximately 7% working interest in this well. In addition, the Company is drilling two dual lateral Austin Chalk wells. The BSM No. 5 well is currently drilling at approximately 13,250 feet, and the Freeman No. 1 is at approximately 12,200 feet. Each well is at, or nearing the point of beginning the first updip horizontal lateral. The Company owns 65% and 84% working interest, respectively in each well, and is the operator.

The Austin Chalk has become an important resource play for the Company and is currently being extended westward into other counties on trend where it is believed to be shallower in depth, thicker in section and produce a higher oil ratio. Expectations of additional drilling in the expanded areas are scheduled for sometime in 2008, based on continued successful results.

http://www.b2i.cc/Document/1440/PR_Data___East_Texas_Area.pdf