MEO Australia Limited advises that its subsidiary company Seruway Offshore Exploration Limited (SOEL) received handover of the Hercules #208 jack-up drilling rig on 18th September. The rig is under tow to the Gurame SE-1X location and the well is expected to spud on or around the 22nd September. Gurame SE-1X is scheduled to take 35 days to complete on an untested basis.
The Gurame oil and gas discovery has been delineated by six wells, several of which recovered oil from the two target horizons. A modern transition zone 3D seismic survey was acquired by the previous Operator, however no wells have drilled the deeper targets using this data.
MEO selected the Gurame SE-1X location as the lowest risk, drill-ready candidate with the highest probability of advancing the resource towards commercial development. The well will test the two target reservoirs within a structural closure that is substantially higher than where oil samples were recovered in previous wells. MEO expects the target reservoirs at this location to be naturally fractured and gas bearing, a combination which should enhance the potential to achieve a commercial flow rate.
MEO’s CEO and MD Jürgen Hendrich commented on the announcement:
“We are very excited about the prospects of a commercial development based on our assessment of a very significant in place resource at Gurame. There is no question that a substantial in-place resource is present. Notwithstanding that a blow out at the discovery well demonstrated that hydrocarbons are capable of flowing, commercial flow rates under controlled conditions have not yet been achieved. We have designed the well to maximise the chances of achieving a commercial flow rate. If this can be demonstrated, the prospects of developing the Gurame resource and delivering value to shareholders will take a tremendous step forward. We look forward to SOEL undertaking a safe and successful drilling campaign.“
Press Release, September 19, 2012