MEO Australia: Seruway PSC operations update

(12 November 2012)--MEO Australia Limited provides the following update in relation to Gurame SE-1XST being drilled in the Seruway PSC, offshore North Sumatra.

Since the last report, a conventional core was cut over a 13.4m interval from 2,794-2,807.4mMDRT at which point coring was terminated and 12.36m (92.2%) of core was recovered.

Drilling resumed in 8?? hole until 2,821.8mMDRT where mud circulation was lost within the Baong sands. Following stabilization of mud losses, drilling continued to the planned section TD at 2,962mMDRT in the Lower Baong shale. Gas shows continued to be observed to section TD.

At 2400 hrs (Jakarta time) on 11th November, a suite of wireline logs was being acquired. The forward plan is to complete the wireline logging program, set a 7? liner prior to increasing mud weight and drilling ahead to the lower targets.

Progress Summary
Progress since last report:
−Cut 13.4m core from 2,794mMDRT, recovered 12.36m (92.2%)
−Drilled 8?? hole to 2,821.8mMDRT ?lost circulation in Baong sands, treated zone with LCM
− Drilled to planned section TD at 2,962mMDRT, commenced wireline logging program
Present Operation (at 2400hrs Jakarta time, 11thNovember)
−Acquiring wireline logs over first objective
Outlook
−Complete wireline logging program and run 7? liner, prior to drilling ahead to lower targets.

MEO?s CEO and MD J?rgen Hendrich commented on the announcement: ?We are highly encouraged by the gas observed in the first of the primary objectives.?(ends)