MEO reports Indonesian operations

The following is an excerpt from Australian firm MEO Australia Limited quarterly activities ended March, 2014 released on Tuesday

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 islocated 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 concluded during the quarter. The reality of limited remaining PSC tenure represents a significant impediment to any incoming party. Discussions continued with the regulator to canvass various options to achieve longer tenure within the constraints of the regulatory framework. (end of excerpt)