MEO Australia: Seruway PSC operations update

(11 October 2012) -- MEO Australia Limited advises the following update in relation to the Gurame SE-1X well being drilled offshore North Sumatra in the Seruway PSC using the Hercules #208 drilling rig.

Since the last report, the 12 ?? hole has been drilled and steered to the 9 5/8? casing point at 2,618mMDRT. Preparations are underway to run and cement 9 5/8? casing prior to drilling out into the first target reservoir, the Baong sands.

Minor gas shows were encountered in the Keutapang reservoirs, however these are not considered an objective in the current well.

Progress Summary
Progress since last report:

− Drilled and steered 12 ?" hole to 2,618mMDRT

Present Operation (at 06.00hrs Jakarta time, 11th October)
− Preparing to run and cement 95/8? casing

Outlook:
− Drill and cut cores to approximately 3,374mMDRT

MEO?s CEO and MD J?rgen Hendrich commented on the announcement: ?Drilling continues to proceed safely and according to plan. We look forward to drilling out into the first objective once the 9 5/8? casing has been run and cemented in place.? (ends)