MEO: Preps Underway for Production Tests at Gurame (Indonesia)

MEO Australia Completes Wireline Logging at Gurame Well

MEO Australia Limited provides the following update in relation to Gurame SE-1XST being drilled in the Seruway PSC, offshore North Sumatra, Indonesia, in which MEO holds a 100% interest.

Since the last report wireline logging operations have been completed. The significant difficulties in stabilizing mud losses encountered at 3,145mMDRT and the consequent risks to well integrity precluded drilling further.

The well has been plugged back 35m into the liner to 2,926mMDRT and preparations are underway to production test the Baong sands.

MEO’s CEO and MD Jürgen Hendrich commented on the announcement:

“The significant mudlosses experienced, coupled with good gas shows is evidence the Belumai sands are fractured and have the potential to be productive. Regretably, these fractures also bring drilling challenges. Gas shows encountered while drilling indicated no evidence of H2S or CO2, suggesting good gas quality. The upcoming production test will determine Baong reservoir productivity and gas composition.”

[mappress]

December 6, 2012

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