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The Meridian Resource Corporation
Announces Third Quarter 1997 Results
Houston, Texas - November 17, 1997 - The Meridian Resource Corporation
(NYSE: TMR) today announced operating and financial results for
the Third Quarter 1997 and the nine month period ending September
30, 1997. Oil and gas production volumes for the current quarter
were essentially flat with the year earlier period, while the
nine month production figures continued to show strong growth
with a 20% increase over the prior period. For the quarter, the
Company reported Operating Cash Flow of $3,335,000 ($.21/share)
compared to the prior period Operating Cash Flow of $5,198,000
($.33/share). Current quarterly earnings of $412,000 ($.03/share)
compare with earnings of $1,771,000 ($.11/share) for the 1996
period. For the first nine months of 1997, the Company reported
Operating Cash Flow of $14,053,000 ($.89/share) and earnings of
$3,747,000 ($.24/share) compared to Operating Cash Flow of $13,143,000
($.84/share) and earning of $4,677,000 ($.30/share) for the prior
period. Results for 1997 were impacted by a substantial production
decline at the Company's properties in the Southwest Holmwood
Field in Louisiana, a 7% decrease in the average price per MCFEq
for the quarter, and equipment delays associated with drilling
and completion activities.
On November 5, 1997 the Company completed its merger with Cairn
Energy USA, Inc., issuing approximately 19.0 million shares of
common stock and the reservation of an additional .8 million shares
for outstanding options. The acquisition substantially boosts
the Company's reserve base, production rates and expected cash
flow. In addition, exploratory wells which are currently drilling
or scheduled for the next twelve months could materially increase
these values from current levels. Reserves have already been added
at two recent wells which were not reflected as "Proved" on TMR's
earlier evaluation of the Cairn properties. The Company expects
to issue information in the near future detailing the current
operating activities and recent results of the combined companies.
The Meridian Resource Corp. 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 MORE INFORMATION CONTACT:
JOSEPH A. REEVES, JR.
or
MICHAEL J. MAYELL
(281) 558-8080
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