Eni Encounters Gas Shows at Heron South-1 (Australia)

October 11, 2012

MEO Australia Limited provides the following update in relation to Heron South-1 being drilled in NT/P68, operated by Eni Australia Ltd.

Since the last report, a 26.7m core was cut from 4,068.5m to 4,095.2mMDRT (metres Measured Depth below Rotary Table) and recovered to surface. Based on palynology analysis of core chip samples, MEO believes the section cored is sandstone above the main Elang-Plover objective.

Following recovery of the core, drilling operations resumed and at 07:00 Darwin time on Thursday 11th October, Heron South-1 was drilling ahead at a depth of 4,186mMDRT. Gas shows and elevated resistivity readings from the LWD tools have been recorded while drilling. The significance of these observations will only be determined once a comprehensive formation evaluation program has been conducted at Total Depth (TD).

The forward plan is to continue drilling to the gas water contact in the Elang-Plover objective. At TD a comprehensive formation evaluation program will be undertaken. If warranted, a production test will be run to determine reservoir productivity.
The key objectives of the well are to determine the productivity of the Elang-Plover reservoir and the gas composition.

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Press Release, October 11, 2012