08-01-2019

Meridian hold engineering summit for Davis refinery with Axens and McDermott

Meridian Energy Group, Inc., the leading developer of innovative and environmentally-compliant oil refining facilities, announced today that the Company and its engineering partners, Axens NA and McDermott International, have begun its first week of meetings to kick off the intensive effort to complete the Front-End Engineering and Design of the Davis Refinery located in Belfield, North Dakota. Meridian announced just one month ago its signed agreement with McDermott International under which McDermott will finalize the FEED for the Davis Refinery. Following the completion of that FEED effort, the Parties will be prepared to enter into a comprehensive turnkey Engineering, Procurement and Construction ("EPC") Agreement to build the Davis Refinery. Meridian has been working with Axens NA since 2016 to define the underlying proprietary process technology for the Davis Refinery unit operations and has entered into process book supply and license agreements with Axens this past September for the proprietary process units for the full 49,500 bpd Davis Refinery.

These meetings mark the full implementation of the integrated project partnerships that Meridian has assembled to develop the cleanest refineries on the planet. Axens NA provides a complete range of solutions to ensure the highest level of performance with a reduced environmental footprint, and McDermott is a premier, fully - integrated provider of technology, engineering and construction solutions to the energy industry.

William Prentice, CEO of Meridian, said of this Engineering Summit, "Meridian's mission is to drive the reinvention of the refining industry, and the Davis Refinery is the future of domestic US refining. To fulfill this mission, Meridian requires Partners that share this vision, and possess the expertise and professionalism to complete Davis and follow-on projects in a reliable and cost-effective manner."

Meridian VP of Operations, Tom Johnson, also commented, "The entire Meridian, Axens, and MDR team is extremely excited to be a part of this innovative project. The team looks forward to delivering a completed oil refinery that meets the conditions of the EPA's approved Synthetic Minor Source Air Quality permit."

Meridian has completed and invested a significant portion of project financing and will continue to invest its own development financing for this next phase through completion of the FEED, as well as site preparation and grading at the Davis site as weather permits. Full project financing, as arranged by Meridian's investment bankers, financial advisors, and placement agents, including CIBC, will close upon completion of the FEED, in time for full construction to resume later in 2019.

Lance Medlin, Meridian EVP of Projects had this to say, "The Davis Refinery is being designed as a cutting-edge facility, setting a new standard in how emerging energy needs are addressed at regional levels. Meridian's partnership with McDermott and Axens NA for the engineering and development of the Davis Refinery is another step in what has consistently proven to be the right direction in refining."

Mark Fonda, EVP of Engineering for Meridian Energy Group, commented, "The Davis Refinery has the distinct advantage of being a greenfield, innovative, advanced technology project, which will be the most efficient, smartest, ultramodern refinery ever built. As such, the EPC effort will emphasize clean, efficient use of space, time and resources while maintaining the highest priority for environmental, health and safety compliance."