MEO Australia: Seruway PSC operations update

(5 November 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 has been run and cemented to 2,677mMDRT. After pressure testing of Blow-out Preventers and the 95/8? casing, 8?? hole was drilled to 2,794mMDRT. Mudlog gas shows were observed to increase over the interval from 2,776mMDRT to 2,794mMDRT in the Baong sands.

In response to these gas shows, a 30m full-hole conventional core has been planned from 2,794mMDRT. At 2400 hours (Jakarta time) on 4th November operations were in progress to commence coring.

Progress Summary
Progress since last report:
− Ran and cemented 95/8? casing to 2,677mMDRT
− Drilled 8?? hole to 2,794mMDRT

Present Operation (at 2400hrs Jakarta time, 4th November)
− Preparing to cut 30m core from 2,794mMDRT

Outlook:
− Complete coring and drill 8?? hole to base of Baong sands