Quarterly Activities Summary for Period Ended 30th Sept 2012
Melbourne, Oct 10, 2012 AEST (ABN Newswire) - MEO Australia Limited (
ASX:MEO) (OTCQX:MEOAY) provides the following summary in relation to its activities during the quarter ended 30th September 2012.
Executive Summary
During the quarter, two wells commenced drilling - Heron South-1 in NT/P68 (MEO 50%) and Gurame SE-1X in the Seruway PSC (MEO 100%).
Eni, as Operator of NT/P68 (MEO 50%), took possession of the Ensco #109 jack-up drilling rig in mid-August and spudded Heron South-1 on 24th August. Eni is funding 100% of the well costs as part of its obligations to earn a 50% interest under the terms of a farm-in agreement executed in May 2011. At the time of writing, the well had reached its primary objective and a drill core was being recovered to provide a physical sample of the reservoir for laboratory analysis and to allow calibration of the formation evaluation tools used to indirectly measure reservoir properties.
Wholly owned MEO subsidiary, Seruway Offshore Exploration Limited (SOEL) executed a rig assignment agreement during the quarter to utilize the Hercules #208 jack-up drilling rig. Notwithstanding a significant farm-out effort, no acceptable offers were received, leaving SOEL with 100% interest in the PSC and the Gurame SE-1X well. The rig was handed over to SOEL on 19th September and Gurame SE-1X was spudded on 23rd September. At the time of writing, the well was close to reaching the 9 5/8" casing point, immediately above the first objective.
In the Gulf of Thailand, Operator Pearl Oil (a wholly owned subsidiary of Mubadala Petroleum) mapped some 23 prospects and leads with an unrisked mean recoverable prospective resource potential of over 100 MMstb. From these prospects, the Sainampueng-1X location was selected to satisfy the permit Year 6 obligation well to be drilled in 4Q 2012. Pearl Oil also advised it had received instruction from the regulator that the permit Year 5 obligation well remained outstanding and was required to be drilled before permit expiry in January 2013. The costs associated with the Permit Year 5 well will be borne solely by Pearl Oil.
During the quarter, MEO received the final processed data volumes for 3D seismic surveys acquired in WA-361-P, WA-454-P and over the Ibu Horst in the Seruway PSC. These datasets will be interpreted ahead of offering industry participants an opportunity to joint venture with the Company to jointly explore for hydrocarbons. MEO is on track to launch the WA-454-P farm-out process on 1st November.
Cash balance at end of quarter
The consolidated cash balance at 30th September was A$48.5 million including a USD balance of $17.4 million. A share purchase plan (SPP) was launched on 25th September to raise additional funds for working capital. The SPP closes at 17:00 AEDST on Friday 12th October.
Priorities for the current quarter ending 31st December 2012 Complete drilling and evaluation of Heron South-1 (non-operated) Complete drilling and evaluation of Gurame SE-1X Launch farm-out of WA-454-P (MEO 100%) Generate prospects and leads inventory for Ibu Horst in Seruway PSC (MEO 100%) Continue to screen New Venture opportunities for attractive growth options
For the complete MEO Australia Quarterly Activities Summary, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-MEO-380252.pdf
Contact
MEO Australia Limited
T: +61-3-8625-6000
F: +61-3-9614-0660
E: admin@meoaustralia.com.au
WWW: www.meoaustralia.com.au
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