2010-01-07-2009-12-23-2010-05-14

Acquired company with assets in TX Austin chalk, LA, OK, KY and GOM, gaining 80 Bcfe proved, 32 MMcfe/d.

Houston-based, privately held Alta Mesa Holdings LP has completed the acquisition of Gulf Coast producer The Meridian Resource Corp., Houston, (NYSE: TMR) for approximately $172.5 million in cash and debt assumption, saving the company from impending bankruptcy following a negative borrowing-base reduction in spring 2009.

Alta Mesa paid $0.33 per Meridian share in cash, representing an equity value of approximately $30.5 million.Approximately 67.6% of Meridian outstanding shares were voted in favor of the merger.

When the merger was announced in December 2009, Alta Mesa agreed to assume all of Meridian's outstanding obligations, including those under the company's senior secured credit agreement. As of year-end 2009, Meridian's debt was approximately $142,000.

Acquired from the merger are interests in 19 fields and 100 producing wells, primarily in East and South Texas targeting the Austin chalk and in southern Louisiana (96% operated). Alta Mesa now holds interests in 71,500 gross developed acres (34,000 net) and 196,300 gross undeveloped acres (134,000 net) in Louisiana, Texas, the Gulf of Mexico, Oklahoma and Kentucky.

As of year-end 2008, Meridian had proved reserves of 80 billion cubic feet equivalent (63% gas, 64% proved developed). Production as of year-end 2009 was approximately 30 million cubic feet equivalent per day.

Meridian chairman, president and chief executive Paul Ching says, "After conducting an exhaustive evaluation of recapitalization and corporate sale alternatives, our board of directors unanimously concluded that this transaction with Alta Mesa is in the best interests of our shareholders."

Following a borrowing-base redetermination in 2009 by Fortis Capital Corp., Meridian's base was reduced from $95 million to $60 million, resulting in a deficiency of $35 million.

Meridian stock has been delisted on the New York Stock Exchange.

Rivington Securities LLC, a subsidiary of Rivington Capital Advisors LLC, and J.P. Morgan Securities Inc. are advisors to Meridian, and Morgan Keegan & Co. Inc. provided a fairness opinion to the Meridian board.