MEO Australia Secures Funds for Gurame Testing (Indonesia)
- Business & Finance
MEO Australia Limited advises that it has Executed a Private Placement Agreement with Asian Energy Limited, a company managed by Noonday Asset Management Asia Pte Ltd (Noonday), to raise $10.0 million, to provide working capital to fund the production testing of Gurame-1XST1. Under the agreement, MEO will issue Asian Energy Limited 40,816,327 shares at an issue price of $0.245 cents per share.
Noonday, is a Singapore-based investment advisor that serves as an exclusive sub-advisor to Farallon Capital Management, a San Francisco-based global fund manager. Noonday brings extensive expertise in investing across Asia having made significant investments in the Asian energy sector, particularly in Indonesia.
The Seruway PSC (MEO 100%) contains the Gurame and Kuala Langsa gas discoveries together with a host of additional targets along the Ibu Horst which MEO considers to be prospective for gas and also liquids. Collectively, these discovered and prospective resources have the potential to underpin a significant gas development in a region with strong unsatisfied demand for gas.
MEO’s CEO and MD Jürgen Hendrich commented on the announcement:
“We are delighted to welcome Noonday as a cornerstone investor and substantial shareholder. Having a large, highly respected financial institution such as Noonday on the register, provides investment support and funding options for MEO as the company pursues a portolio of projects in Northern Australia, Thailand and Indonesia. Noonday’s investment expertise within the Asian energy sector, particularly in Indonesia, is a key strategic element that will become increasingly important as we seek to mature our projects towards development.”
Gurame SE-1XST drilling update
The company also provided the following update in relation to Gurame SE-1XST being drilled in the Seruway PSC, offshore North Sumatra.
Since the last report, wireline logging operations were completed over the Baong sands. A 7” liner was run and cemented to 2,961mMDRT. At 0200 hrs (local time) this morning the rig was running in hole preparing to drill out of the 7” liner.
Logging results coupled with gas shows while drilling indicates the Baong sands are gas saturated. Image logs show the Baong sands to be finely laminated with significant fracturing. A dual packer MDT was run which confirmed the reservoir has matrix permeability. MEO has elected to production test the Baong sands to determine gas composition and reservoir productivity.
The forward program is to drill out of the 7” liner and into the second primary target, the Belumai sands, prior to production testing the Baong sands.
Jürgen Hendrich said “The decision to production test the Baong sands represents a significant investment. We are very pleased to have secured a substantial shareholder and funding for this undertaking.”
November 19, 2012