MEO may commence Gurame drilling in October
Friday, August 24 2012 - 01:56 AM WIB
Australia-listed firm MEO Australia Limited announced that its Indonesian subsidiary, Seruway Offshore Exploration Limited (SOEL), has agreed to execute an agreement with Zaratex NV (Zaratex) and Hercules Offshore Inc (Hercules) for the second of Zaratex?s two optional rig slots to drill Gurame SE-1X within the Seruway PSC in North Sumatra.
Under the deal, the Hercules #208 jack-up drilling rig will be used in the drilling, according to a company presentation.
MEO anticipates that drilling will commence in early October and take 35 days to complete on an untested basis or 50 days in the likely event it is production tested.
With regard to the firm?s plans to farm out an interest in the PSC, no acceptable farm-in offers were received. Discussions are continuing with a limited number of parties however MEO considers it unlikely that a transaction can be concluded before the commencement of drilling.
As such, MEO will be carrying the US$25 million cost (untested) of the well.
The farm-out effort was launched in the quarter with the aim of attracting a funding partner for the upcoming drilling of Gurame SE-1X, targeting the crest of the Gurame structure that is expected to contain a significant gas cap to two deeper proven oil bearing horizons.
Editing by Dadan Wijaksana