MEO Australia to Spud Well Off Northern Sumatra

MEO Australia announced that its subsidiary company, Seruway Offshore Exploration Limited (SOEL) has been informed that the Hercules #208 jack-up drilling rig is expected to be handed over to SOEL on 18th September 2012.

MEO anticipates that Gurame SE-1X will commence drilling activities on or around 22nd September 2012 and take approximately 35 days to complete on an untested basis.

The Gurame discovery has been intersected by six previous wells which recovered oil from the two deeper target horizons. A modern transition zone 3D seismic survey was acquired by the previous operator, however no wells have been drilled for the deeper targets with the benefit of this data. MEO selected the Gurame SE-1X location as the lowest risk, drill-ready candidate with the highest probability of advancing the resource towards commercial development. The well will test the target reservoirs within a structural closure at a level that is substantially higher than where oil samples were recovered from these same intervals in previous wells.

MEO expects the target reservoirs at this location to be naturally fractured and gas bearing, a combination which will enhance the potential to achieve a commercial flow rate. An overview of Gurame is provided overleaf and a detailed technical supplement is attached.

MEO’s CEO and MD Jürgen Hendrich commented on the announcement: “SOEL is well positioned to accept assignment of the Hercules #208 drilling rig and to commence the Gurame SE-1X drilling operation. MEO is very excited about the prospects of a commercial development based on the significant in place resource at Gurame. A commercial gas flow rate will accelerate the development potential of this resource. We look forward to SOEL undertaking a safe and successful drilling campaign.“

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LNG World News Staff, September 13, 2012; Image: MEO