MEO Australia Encouraged by Gurame Well Gas Shows (Indonesia)

MEO Australia: Gurame Well Drilling Resumes (Indonesia)

MEO Australia Limited provides the following update in relation to Gurame SE-1XST being drilled in the Seruway PSC, offshore North Sumatra.

Since the last report, a conventional core was cut over a 13.4m interval from 2,794-2,807.4mMDRT at which point coring was terminated and 12.36m (92.2%) of core was recovered.

Drilling resumed in 8½“ hole until 2,821.8mMDRT where mud circulation was lost within the Baong sands. Following stabilization of mud losses, drilling continued to the planned section TD at 2,962mMDRT in the Lower Baong shale. Gas shows continued to be observed to section TD.

At 2400 hrs (Jakarta time) on 11th November, a suite of wireline logs was being acquired. The forward plan is to complete the wireline logging program, set a 7” liner prior to increasing mud weight and drilling ahead to the lower targets.

MEO’s CEO and MD Jürgen Hendrich commented “We are highly encouraged by the gas observed in the first of the primary objectives.”

November 12, 2012

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