MEO Australia: Seruway PSC operations update

(22 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 hole was conditioned prior to running casing. When the drill string was retrieved some 35m of the bottom hole assembly (BHA) remained in the hole. A decision was made to plug back and sidetrack the hole rather than attempt to retrieve the section of BHA.

The well has been plugged back to 2,048mMDRT and the sidetrack is currently drilling ahead in 12 ?? hole at 2,099mMDRT.

The forward plan is to drill 12 ?? hole to the top of the Baong sands and install 9 5/8? casing prior to drilling out into the first target reservoir, the Baong sands.

Progress Summary
Progress since last report:
− Conditioned 12 ?? hole prior to re-running casing
− Left 35m of bottom hole assembly in the hole
− Plugged back to 2,048m and commenced drilling sidetrack

Present Operation (at 22.00hrs Jakarta time, 21st October)
− Drilling ahead in 12 ?? sidetrack hole at 2,099mMDRT

Outlook:
− Drill sidetrack to top of Baong sands
− 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)