MEO reports Indonesian operations
Thursday, January 16 2014 - 08:04 AM WIB
Seruway PSC, North Sumatra (MEO 100%, Operator)
The Seruway PSC is held by wholly owned subsidiary Seruway Offshore Exploration Limited (?SOEL?). The PSC was acquired in mid-2011 in a corporate transaction and is located in Aceh province of North Sumatra, close to the Arun LNG facility. Domestic gas demand remains unfulfilled.
A number of undeveloped discoveries are featured within the PSC. SOEL acquired modern, high quality, 2012 vintage 3D data over the Ibu Horst area which features two main prospective areas of interest: 1) the Juaro Complex discovered by ONS B-1; and 2) Ibu Alpha discovered by NSO 2-N.
The Juaro Complex is considered to have potential for significant prospective oil resources in the main feature of the complex, with a series of subordinate, independent features offering follow up potential. Ibu Alpha is smaller with a higher chance of success.
The Kuala Langsa gas discovery straddles the adjacent permit and contains contingent resources inclusive of CO2 up to 80%, providing a significant commercialization challenge.
Efforts to secure a funding partner for the permit continued during the quarter. Notwithstanding the technical attractiveness of the identified prospectivity, the reality of limited remaining PSC tenure represents a significant commercial hurdle to any incoming party. The 2014 work program and budget was approved during the quarter. Discussions with the regulator during the budget approval process addressed PSC tenure canvassed various options to extend the PSC term to allow a Plan of Development to be prepared in the event a discovery was made in 2014. In the event such an extension was granted, it would commensurately reduce the time granted for the subsequent production licence.
South Madura PSC, East Java (MEO 90%, Operator)
The PSC expired in October 2013. All documentation pertaining to permit relinquishment was submitted in the prior quarter. (end of excerpt)