MEO Australia: Seruway PSC operations update

The following is an excerpt from Australian firm MEO Australia Limited quarterly activities ended June, 2013 released on Tuesday.

Seruway PSC (MEO 100%, Operator)

The Seruway PSC was acquired in mid-2011 and is in close proximity to the existing, underutilized Arun LNG plant in the Aceh province. The local domestic gas market has unsatisfied demand.

The Ibu Horst area of the permit is covered by modern, high quality, 2012 vintage 3D data. The two main prospective areas of interest, the Juaro Complex and Ibu Alpha, key off discovery wells ONS B-1 and NSO 2-N respectively.

Of these, the main feature within the Juaro Complex is estimated to host prospective resources (best estimate) of 230 million barrels oil, with an additional 63 million barrels (best estimate) within a series of subordinate, independent features. The Ibu Alpha prospect is estimated to contain prospective resources (best estimate) of 24 million barrels oil.

Another discovery - Kuala Langsa ? extends onto the permit and is assessed to contain contingent resources (Best Estimate) of 1.5 Tcf raw gas, inclusive of uncertain CO2 composition in the range 50-80%.

A farmout/partial sale process continued through the quarter. (end of excerpt)