MEO prepares for spudding in Seruway

By Harry Roy Gunawan

Australia-listed firm MEO Australia Limited said it continued negotiations to secure a drilling slot on a rig that was currently operating in the vicinity of the Seruway PSC in North Sumatra.

The company said in a statement on Friday that current estimates were that the potential spud dates range from early October through to early January depending on which rig slot was secured. Any farm-out transaction will need to close during the current quarter, ahead of the earliest commencement of drilling.

During the quarter ending June 30, MEO launched a farm-out of the Seruway PSC in North Sumatra, to attract 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.

The data room was heavily booked during May and demand extending of the close to the end of June.

MEO expected a transaction in the third quarter of the year to close out a deal with regard to its offer in April to farm out up to 50 percent participating interest in the Seruway PSC, offshore North Sumatra.

For its program this year, the company has announced that it planned to drill one well in the block in the fourth quarter of 2012, and two other wells in the following quarter.

MEO, through wholly owned subsidiary Seruway Offshore Exploration Limited owns a 100 percent working interest in the block, which includes two significant gas fields ? Gurame and Kuala Langsa ? together with a number of wells that have intersected and tested gas and condensate.

Editing by Benget Besalicto Tnb.