MEO Australia Limited has executed binding amendments to the NT/P68 Farm-in Agreement (FIA) dated 17th May 2011 to extend the second Heron well notice date to 18th December 2013.
This extension allows additional studies to be undertaken, the costs of which will be borne by Eni. The deadline for completion of the second well in the event Eni elects to drill the well, remains unchanged at 12th February 2016.
Under the terms of the FIA, Eni had the option to acquire an additional 25% interest in the permit by funding MEO’s share of the work programme required to reach a Final Investment Decision (FID) in either Heron and/or Blackwood.
The amendments to the FIA have split this option into separate elections allowing the additional 25% equity to be elected independently in the Heron and Blackwood areas.
MEO’s CEO and MD Jürgen Hendrich, said:“Heron South-1 intersected two significant gas bearing intervals but flowed gas to surface at rates too small to measure accurately. This time extension allows technical studies to be undertaken to better understand the causes of and distribution of reservoir productivity and determine whether sweet spots can be expected at Heron and where these have the highest probability of occurrence.”