October 24, 2008

Meridian Petroleum Signs Survey Contract With Terrex for Australian License

Meridian Petroleum, an oil and gas exploration and production company, has signed a contract with Terrex to acquire 88sqkm of 3D seismic on its 100% owned PEL82 license in the Otway Basin, onshore South Australia.

The survey is expected to commence early in 2009 and is estimated to cost $2.5 million. Following the analysis of the 3D seismic data the company's board will consider the next steps which may include bringing a partner into the license.

The license is currently being held in suspension and expires in August 2009 at which time the company intends to renew the license for a further period of up to five years. As part of that process, Meridian expects to commit to drill a well on PEL82 during the first year of renewal.

Stephen Gutteridge, chairman of Meridian Petroleum, said: "On May 29, 2008, we reported that we had received a further offer to purchase our Australian licenses. With the company performing strongly at the time, the board decided to reject this offer, which was for several million dollars, and to proceed with the development of the licenses for the benefit of our shareholders."