MEO Australia: Seruway PSC operations update

(15 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, 9 5/8? casing was run to 2,412mmMDRT before a blockage prevented mud circulation. All casing was recovered in good condition and the rig is currently running in hole to clean out and condition the well. The forward plan is to re-run and cement 9 5/8? casing prior to drilling out into the first target reservoir, the Baong sands.

Progress Summary
Progress since last report:
− Ran 9 5/8? casing to 2,412mMDRT
− Recovered all casing to surface
− Commenced hole clean out and conditioning

Present Operation (at 06.00hrs Jakarta time, 15th October)
− Commenced hole clean out and conditioning

Outlook:
− Run and cement 95/8? casing
− Drill and cut cores to approximately 3,374mMDRT

MEO?s CEO and MD J?rgen Hendrich commented on the announcement:?The blockage encountered represents an unforeseendelay in what has otherwise been a smooth runningoperation. We look forward to drilling out into the first objective once the 9 5/8? casing has been rerun and cemented in place.?(ends)