MEO reports Indonesian operations

The following is an excerpt from Australian firm MEO Australia Limited quarterly activities ended March, 2012 released on Friday.

Seruway PSC, North Sumatra (MEO 100%, Operator)
The PSC is strategically situated in close proximity to a strong domestic gas market and under-utilised LNG infrastructure. The PSC also contains two significant discoveries ? Gurame (gas and oil) & Kuala Langsa (high CO2 gas) ? together with a number of discovery wells along the Ibu Horst that have intersected and tested gas and condensate.

PT Nusantara PGS completed acquisition of the 708 km2 Ibu Horst 3D seismic survey. Data quality appears to be excellent based on the fast track volume. Processing is expected to be completed this quarter. MEO made preparations to farmout an interest in the permit during the quarter and officially launched the farmout on 13th April. As part of the preparations, preliminary ?in house? volumes were calculated for the Gurame and Kuala Langsa discoveries. These have not been independently verified. They were calculated to give an indication of the potential to prospective farminees. At Gurame, prospective resources were estimated to be: 273 Bcf/27 mmbbls - 497 Bcf/58 mmbbls - 963 Bcf/126 mmbbls (P90-P50-P10). The Kuala Langsa gas discovery straddles two PSC?s. MEO estimates a gross raw recoverable gas resource of 5.3 Tcf (P50) of which approximately 28% is expected to lie within the Seruway PSC. Clearly, the Gurame discovery has significant potential and has been selected as the preferred candidate for the 2012 commitment well.

South Madura PSC, East Java (MEO 90%, Operator)
During the quarter, MEO submitted documentation to the regulatory authorities relating to the purchase of an additional 60% participating interest in the PSC from AED South Madura BV for US$0.3 million cash.

Pending receipt of regulatory approvals, MEO subsidiary South Madura Exploration Company (?SMEC?) will assume the role of Operator and propose a revised work program that addresses MEO?s view of the prospectivity within the PSC.

As part of this program, MEO proposes the acquisition of 2D seismic over a number of leads. (end of excerpt)