Melbana Energy Limited

June quarter: cash fell to $0.47m and the company says continued activity depends on recovering Sonangol's debt (now $34.8m owed) or raising other funds. Block 9 support is suspended after the CUPET sanctions. Sonangol's 70% transfer awaits Cuban approval. Costs are being cut.

quarterly activities report

Following the US sanctions on CUPET, Melbana has suspended its direct financial, technical and administrative support for Block 9 and is taking legal advice, including on secondary sanctions risk. No conclusions yet. Melbana itself is not designated; Australian permits are unaffected.

regulatory community update

Melbana requested a voluntary trading suspension after the US designated Cuba's state oil company CUPET, its Block 9 counterparty, as a sanctioned entity on 11 June. The company calls Block 9 its principal asset and cannot yet say the impact. Suspension to last up to 18 June.

price query

Sonangol failed to cure its default on US$23.5m of unpaid cash calls, so Melbana says Sonangol is deemed withdrawn and its 70% will transfer to Melbana, giving 100% of Block 9 subject to Cuban approval. Amistad-2 missed its target through a subsurface misinterpretation; Amistad-1 produces about 20 bopd.

joint venture update

Amistad-11 is deferred to 2026 because Sonangol (70% partner) says it cannot pay more cash calls this calendar year. Melbana is demobilising the rig and issued a Notice of Default with 60 days to cure, after which Sonangol could be required to assign its interest.

debt default or forbearance

Amistad-2 in Cuba (30%) was drilled to 2,000 m and found 169 m of porous reservoir, but flow-testing recovered no oil, only water. Called disappointing and being plugged and abandoned. Amistad-11 may replace Amistad-3 as the next well.

drilling result

AC/P70 (100%) prospective resources increased: gas from 2,754 to 2,857 Bcf and oil from 43 to 78 MMbbl (best estimates, unrisked), with Hadrosaurus lifted to prospect status. Contingent resource unchanged at 276 Bcf and 34 MMbbl. Farmout process targeted to close Q4 2025.

resource reserve update

Drilling of Amistad-2, Melbana's first dedicated production well in Cuba's Block 9 (30%), began on 18 September 2025, close to the mid-September target after earlier delays. Planned depth is 1125 metres; the bit was at 37 metres.

drilling spud

Rig is mobilising for Amistad-2 in Cuba, with spud projected mid-September and results mid-October, after repeated delays when the preferred rig was redirected. Over 30,000 barrels are in storage; first cargo is promised this year, but is held back to see Amistad-2 output.

drilling scheduled

Melbana raised about $7m via a placement of 411,764,706 shares at $0.017, a 22.7% discount to the last close. Each share carries a $0.02 one-year option (needs shareholder approval). Funds go to its share of Amistad-2 drilling costs and general purposes, after cash fell to $5.1m.

capital raising announcement

Alameda-2 workover succeeded: a 12-hour test averaged 488 bopd versus 293 bopd before, a 66% rise, though below the 1,235 bopd originally achieved. Well is on full-time production; Amistad-2 drilling expected to start late May. Alameda-3 may also be remediable.

well test result

Maiden resource estimates for AC/P70 (100%): Contingent Resource 276 Bcf gas and 34 MMbbl oil (best estimate) at the Vesta and Swan discoveries, plus Prospective Resource 2,754 Bcf and 43 MMbbl. An advisor is appointed to find a partner to fund work.

resource reserve update

Melbana was granted offshore permit WA-552-P in the Dampier Sub-basin through a wholly owned subsidiary. The first three years require only desktop work costing about A$0.8m, with a A$30m well in year 6 at Melbana's election.

regulatory community update

Initial Unit 1B development approved by partner and regulator, with construction approved for the next well pad and export approvals in place. Alameda-2 remediation is planned for November, aiming to restore 1,235 bopd; first cargo is still targeted for end-2024. Alameda-3 deeper remediation is deferred.

regulatory community update

The Alameda reservoir test also failed to flow oil to surface, with only 14% of load fluid recovered, matching the Marti failure. Melbana is unsure whether the cause is emulsion or rock-mud reaction, and will suspend the well to plan remediation. It says the Unit 1B plan for first export this year is unaffected.

well test result

Alameda-3 reached 3,880mMD, but the Marti reservoir test did not flow oil to surface; oil was only recovered on reverse circulation. Melbana suspects emulsions in the test string. This is a setback versus Alameda-1, where Marti oil flowed unassisted. Testing moves to the Alameda reservoir.

well test result

McDaniel booked Melbana's first Contingent Resource in Block 9: 46 million barrels (100% basis) in Amistad Unit 1B's eastern area, plus 90 million barrels Prospective in the west. This compares with 30 million barrels Prospective for Units 1A and 1B combined before Alameda-2. Goal remains first export cargo before end-2024.

resource reserve update

NOPTA approved an 18-month suspension of work conditions on WA-544-P and NT/P87 (100%), to 23 May 2025, with permit terms extended to 23 May 2028. This gives time to study the Hudson prospect (395 MMbbl mean oil) before any 3D seismic decision. Melbana still intends a partial farmout.

regulatory community update

Alameda-3 started drilling on 15 December 2023, planned to reach 3,835mMD in 95 days. It targets the Alameda and Marti reservoirs (179 MMbbl prospective). Unit 3 flow test is planned for late January, first deep flow test in March, and the certifier's Amistad resource report is targeted for February.

drilling spud

Alameda-1 was plugged and abandoned as originally planned. Alameda-3 will spud in November 2023 to test the deeper Alameda and Marti formations. Early production from Alameda-2 Unit 1B is planned beforehand; 1,500 barrels of test oil have been trucked to a storage facility so far.

production update

Alameda-2 Unit 1B flowed lighter oil (19° API, 30 cP) to surface, peaking at 1,903 barrels a day and averaging 1,235 over a stabilised 12 hours, with no formation water. Unit 2 showed no moveable oil. Unit 1B is completed for production and the field development plan is under review.

flow test result

Unit 3 test confirmed moveable heavy oil, with an inflow rate equivalent to about 750 barrels a day, though it did not flow to surface. No formation water seen. Total logged net pay is now 346m (615m with fractures); Unit 2 testing has begun.

well test result

Alameda-2 reached planned total depth early. Logged net pay in Amistad Units 1A, 1B and 2 rises to 243m from 84m in Alameda-1 (538m allowing for fractures). Unit 3 logs are not yet included; resource update awaits testing.

drilling result

Alameda-2's shallowest Amistad unit (1A) flowed oil to surface unassisted from a 63m interval, though not at a measurable rate (40 barrels recovered). Oil is heavy (11.7° API). Melbana had given it low odds and counted no resource from it; drilling continues to deeper units.

well test result

Maiden estimate for the Hudson carbonate prospect in WA-544-P and NT/P87 (Melbana 100%): mean 395 MMbbl oil-only or 2,034 bcf gas-only, with a 12% chance of success. Melbana plans to farm out part to fund 3D seismic.

resource reserve update

Drilling of Alameda-2, the first of two Block 9 appraisal wells (Melbana 30%, operator), began on 19 June 2023 (Cuban time). It tests the Amistad zone and resumes drilling after the Zapato-1 disappointment.

drilling spud

Cuban regulator and partner Sonangol approved the 2023 program and budget, and material permits are in hand. Alameda-2 will test the Amistad zone to about 2,100mMD, estimated at 1.9bn bbl in place and 88 MMbbl prospective (best estimate), starting by March 2023.

drilling scheduled

Two appraisal wells in Block 9 (Melbana 30%, operator) are set to start in Q1 2023, to test the three Alameda-1 reservoirs (6.4bn bbl in place, 362 MMbbl prospective), with extended production tests possible. Melbana says it is fully funded for its share.

drilling scheduled

Zapato-1 reached its planned total depth of 3,152 mMD, still within the ophiolite, though velocity data indicated the original seismic reservoir target had been tested. The well will be suspended and the rig sent back to Alameda for appraisal.

drilling result

McDaniel assessed the Marti reservoir at 1.5 billion barrels in place and 95 MMbbl mean prospective resource (100%), up from 72 MMbbl pre-drill. Completes the Alameda-1 set: 6.4 billion barrels and 362 MMbbl across three zones. Melbana holds 30%.

resource reserve update

McDaniel assessed the Alameda zone at 2.3 billion barrels of oil in place and 148 MMbbl mean prospective resource (100%), 56% chance of discovery; Melbana's 30% is about 44 MMbbl. With Amistad, the two zones total 267 MMbbl. Marti is still awaited.

resource reserve update

Zapato-1, the second Block 9 well, began drilling on Saturday 21 May Cuban time. It targets the suspected source of the old Motembo oil field, with a 95 MMbbl best estimate. Melbana holds 30%.

drilling spud

Early short tests of the deeper Alameda-1 zones are dropped as impractical given the high pressures; longer testing is deferred until after Zapato-1. Zapato-1 (95 MMbbl best estimate, 23% chance of success) is now due to start in the last week of May.

drilling scheduled

Logs show about 62m (52m vertical) of net pay in the Marti zone. Across all three zones net pay totals about 300m (278m vertical). Amistad figures were upgraded using a more optimistic porosity cut-off. A full updated resource estimate is still to come.

drilling result

Alameda-1 was stopped at 3,916m after a further oil and gas influx and rising pressure. Almost 300m of the Marti zone showed continuous oil shows, making three significant intervals in the well. Logging and flow testing are next; Zapato-1 follows.

drilling result

Melbana raised A$15m via a placement of 125m shares at $0.12, a 14.3% discount to the last close of $0.14. Funds go to flow tests, studies, appraisal well planning and team expansion in Block 9. That is far above the 2c September entitlement offer price.

capital raising announcement

McDaniel assessed the shallow Amistad zones at Alameda-1 at 2.5 billion barrels of oil in place and 119 MMbbl mean unrisked prospective resource (100% basis), with an 86% chance of success in at least one of three zones. Melbana's 30% share is about 35 MMbbl mean. The zones were renamed.

resource reserve update

Logs interpret about 100m of net hydrocarbon pay across a roughly 560m gross interval in the N structure at Alameda-1, with extensive natural fracturing and high pressure. This adds to the shallow Amistad pay. Flow testing is expected from mid-March, and an updated resource estimate will follow.

drilling result

Melbana was granted offshore permit AC/P70 in the Ashmore and Cartier Islands for six years. It contains the undeveloped Vesta-1 oil discovery (2005), with a gas cap found by Vesta-2. The guaranteed years 1-3 work program includes seismic licensing, studies, planning and a A$23m exploration well.

regulatory community update

Sale of WA-488-P (Beehive prospect) to EOG completed, with US$7.5m received. Up to US$5m contingent and US$10m per 25m boe produced may follow. Resolves the pending sale; Melbana keeps WA-544-P and NT/P87.

asset acquisition disposition

Alameda-1 was shut in at 1,892m because shipping delays left it short of barite for mud, pausing drilling. Melbana has begun planning an extra well on the same pad to test the shallow Amistad oil zone.

drilling progress report

Logs on Alameda-1 indicate at least 48 net metres of potential oil and gas pay across 11 zones (415m gross), rising to about 100m on a looser cut-off. About 290m could not be logged. Primary targets are still to be drilled.

drilling result

Alameda-1 found unexpected moveable light oil shows from 454m to 1,047m, a thickness of 547 metres, in shallow limestones above the planned targets. Significance is uncertain until logging; the main targets are still deeper.

drilling progress report

Alameda-1 spudded on 13 September 2021, on the forecast date, starting the long-planned Block 9 Cuba campaign. The well will test three targets with 141 million barrels of best-estimate prospective resource (unrisked). Webinar set for 16 September.

drilling spud

Entitlement offer closed: 133.5m shares taken up by shareholders, 79.9m applied for as extra shares, leaving 143.1m shortfall shares for the underwriters. The chairman says Melbana is now fully funded for its share of the Cuba wells.

capital raising announcement

Melbana is raising up to about $7.13m through a 2-for-13 entitlement offer at 2 cents, with a free option per two shares at 3.5 cents, fully underwritten by Canaccord. About $6.0m is for Cuba drilling. Non-participants are diluted.

capital raising announcement

Melbana agreed to sell WA-488-P (Beehive) to EOG Resources for US$7.5m upfront, US$5m contingent, and US$10m per 25 million boe produced. EOG plans a 2022 well. This resolves the long farmout search; the sale remains subject to conditions.

asset acquisition disposition

Sherritt International's subsidiary was appointed drilling contractor for the two Block 9 wells in Cuba, supplying a rig already in-country and crews. This resolves the long-pending drilling contract; drilling is still expected mid-2021.

contract award

Melbana was awarded two 100% offshore permits, WA-544-P and NT/P87, next to its Beehive permit, for an initial six years. Guaranteed work for years 1–3 is mainly studies and reprocessing; a well, est. $30m each, is due in year 6.

asset acquisition disposition

Sonangol paid EUR3m (~A$5m), completing repayment of Melbana's ~A$5.7m Block 9 past costs. About A$7.5m of 2020 partner funding is now in. This resolves the past-costs thread, though the amount is stated higher than the earlier ~A$5m.

joint venture update

Melbana's own 3D seismic reassessment lifts Beehive's best-estimate prospective resource about 7% to 419 MMboe, from McDaniel's 388 MMboe in 2018. Farmout is underway, with drilling possible in late 2021. Unrisked resource, not a discovery.

resource reserve update

Formal Cuban approval was received, so from 17 August 2020 Sonangol holds 70% and Melbana 30% of Block 9. This satisfies the farm-in's last condition. Well pad construction is expected next month, and a tubulars tender is running.

farm in farm out completion

The regulator approved a 12-month suspension of Beehive's (WA-488-P) work commitment. Permit Year 3 now ends 21 December 2021, so the well deadline moves out a year. This delivers the extension Melbana said it would seek after Santos's option lapsed.

regulatory community update

Melbana signed the formal Block 9 farm-in with Sonangol, replacing the December heads of agreement. Sonangol funds 85% of the Alameda and Zapato wells to earn 70%, and pays about $5m of past costs. Cuban approval received but still being documented; first well Q4 2020.

farm in farm out agreement

Melbana, holding about 27.8% of Metgasco, asked Metgasco to call a meeting to remove two directors and appoint Matthew Worner and Michael Sandy. It cites a 65% share price fall under the current chairman and delay of the Byron share distribution. Escalates its stance from bidder to activist shareholder.

business combination

Santos failed to farm down by 4 March 2020, so its option over Beehive expired and it has no further interest. Melbana holds 100% of WA-488-P again and is seeking partners to drill, and plans to seek an extension of its drilling deadline. Reverses the Santos farm-out hope.

farm in farm out completion

Chairman Andrew Purcell becomes Executive Chair on $300,000 a year, with a cash bonus of up to 100% tied to two-year targets. Michael Sandy steps down as interim CEO and returns to non-executive director. This ends the interim CEO arrangement and the CEO search.

director officer appointment

The Metgasco offer closed on 31 January 2020 with acceptances for 27.81% of Metgasco. That is short of the original 50.1% target, but gives Melbana a sizeable minority stake. New Melbana shares are due to be issued by 14 February 2020.

business combination

Melbana declared its Metgasco takeover offers wholly unconditional, freeing them from all remaining conditions including the 50.1% minimum acceptance. Voting power is 23.19%. The bid no longer needs majority control to proceed, so Melbana may end up a large minority holder rather than owner.

business combination

Melbana signed a binding heads of agreement for Sonangol (Angola's national oil company) to take 70% of Cuba Block 9 by funding 85% of a two-well campaign. Melbana keeps 30% and operatorship, and Sonangol pays about $5.0m of past costs. Subject to due diligence and approvals; first well expected Q3 2020. Resolves the long-running farm-out search.

farm in farm out agreement

Santos conditionally exercised its option for 80% of Beehive (WA-488-P), but only if it farms part of it down by 4 March 2020 and the permit year is extended to suit 2021 rig availability. If it proceeds, Melbana keeps 20%, free-carried on Beehive-1. Otherwise Melbana keeps 100%.

farm in farm out agreement

Santos exercised its option over Beehive (WA-488-P) while Total declined. Santos can now take 80% by funding 100% of the Beehive-1 well, with a decision due by 4 December 2019. If not exercised, Melbana stays at 100%. Resolves the Total/Santos decision, but only half-way.

farm in farm out agreement

Metgasco's directors unanimously recommend rejecting Melbana's offer, calling it wholly inadequate. They say it is a 20.0% discount to market on 2 October closing prices. Melbana's own expert valued the offer at 4 to 4.4c against Metgasco shares at 4.4 to 5.5c. This is the formal rejection of the bid.

business combination

Cuban authorities approved Melbana's Block 9 amendments. The current sub-period extends to 1 November 2020 with one well still required, the exploration period extends a year, and Melbana is in compliance or waived. About 1% of the area is relinquished, cutting best-estimate prospective resource from 718 to 676 million barrels. Resolves the open extension thread.

regulatory community update

Melbana agreed to Santos and TOTAL's request to extend their Beehive (WA-488-P) option period by one month. They now have until 4 November 2019 to decide, and the options expire 4 December 2019. They said technical work was complete and they needed time for commercial analysis and internal approvals.

farm in farm out agreement

Melbana lodged its bidder's statement for the off-market all-share takeover of Metgasco. This formalises the bid announced in July; the offer close date is left blank in the text provided.

business combination

ASIC granted the modification, so Melbana's intention to bid for Metgasco, 4 Melbana shares for each Metgasco share, is now binding. The independent committee waived the Byron-related breaches. The offer still needs 50.1% acceptance and approval for M&A Advisory's participation.

business combination

CEO Robert Zammit left the company effective 19 July 2019. Non-executive director Michael Sandy takes over as interim CEO while a replacement is sought.

director officer appointment

Melbana announces a conditional intention to bid for all of Metgasco, offering 4 Melbana shares per Metgasco share, an implied value of 4 cents, a 48% premium to Metgasco's 12 July close. Conditional on an ASIC modification; chairman Purcell-linked M&A Advisory (19.59% of Melbana) has a pre-bid acceptance agreement.

business combination

Melbana terminated the AGMI/AMEC Block 9 farmout because the conditions precedent, including approvals and guarantees, were not met in time. It will seek other farminees and has asked Cuba's state oil company to extend the guarantee waiver. This reverses the January deal; Block 9 drilling now lacks a funder.

material agreement termination

Final Beehive 3D data was accepted, starting Total and Santos's six-month option period to take 80% and drill Beehive-1. If exercised, Melbana keeps 20%, carried, with drilling in 2H 2020. Melbana's share of the 388 MMboe best estimate is 78 MMboe.

joint venture update

Melbana signed the binding Block 9 farmout with AGMI subsidiary AMEC, which would fund 100% of costs from 1 January 2019. Alameda and Zapato wells are due by 1 November 2019, a third by July 2020. Melbana keeps 12.5% of profit oil. It is subject to Cuban and Chinese approvals.

farm in farm out agreement

Melbana finalised a binding Santa Cruz incremental oil recovery contract with CubaPetroleo, subject to Cuban regulatory approvals. It starts with a study phase of up to 8 months, then a minimum of two side-track wells. This resolves the thread of negotiating a long-term deal for the existing field.

material agreement

Melbana signed a binding agreement to sell its 30% of New Zealand permit PEP51153 to operator CX Oil for A$100,000, subject to conditions including regulatory approval. It removes future permit and rehabilitation costs and completes the exit flagged earlier.

asset acquisition disposition

Melbana signed a non-binding letter of intent for Anhui Guangda Mining Investment (AGMI) to fund three Block 9 wells (Alameda, Zapato, Piedra) by July 2020 and carry all later costs. Melbana keeps 12.5% of profit oil. Binding deal targeted by 1 December 2018.

farm in farm out agreement

Melbana raised A$3.5m through a placement of 194m shares at 1.8 cents, a 14% discount, with one free 3-cent option per three shares. Funds go mainly to Block 9 drilling preparation and Santa Cruz work. Chairman Purcell's participation needs shareholder approval. Contains date typos (2017).

capital raising announcement

All key approvals for Alameda-1 in Cuba Block 9 are received; only the final drilling permit remains, issued once a rig and timing are notified. Rig start dates are December 2018 or April 2019. Partners are short-listed, with a preliminary farm-out targeted this quarter.

regulatory community update

Melbana sold its 55% in AC/P50 and AC/P51 to partner Rouge Rock, which now meets all future costs. Melbana keeps upside: 10% of any cash sale proceeds, or a 5% back-in after a carried well. Completes the divestment flagged on 4 July.

asset acquisition disposition

Independent expert McDaniel lifted Block 9 best-estimate oil in place 24% to over 15.7 billion barrels and recoverable prospective resources 13% to 718 million. Beehive best estimate is 388 MMboe, with chance of success up to 20% from 16%. Unrisked prospective, not discovered.

resource reserve update

NOPTA approved a revised work program for AC/P50 and AC/P51 (Melbana 55%): year 3 extended 12 months and one well deferred to year 5. Melbana calls the permits no longer aligned with strategy and is seeking to divest while keeping upside exposure.

asset acquisition disposition

Melbana signed a US$2.5m loan at 15% a year, maturing 10 January 2019, with first-ranking security and a personal guarantee from Chairman Purcell. Subject to shareholder approval, he is to receive 80m options at 2.2c. This is the company's first debt; repayment from farm-out or option exercise is suggested.

debt financing

The Pukatea-1 Mt Messenger oil zone flowed at up to 600 barrels a day naturally, above expectations, and a discovery notice was filed. This partly offsets the missed primary target and supports planning a restart of the suspended Puka field (Melbana 30%).

flow test result

Melbana signed with Cuba's national oil company Cubapetroleo for exclusive rights to study boosting output from the Santa Cruz oil field (producing since 2004), with a view to negotiating a long-term incremental recovery contract. Studies only; no contract yet. It could be a route to Cuban production.

material agreement

Pukatea-1 reached 3,100m without intersecting the Tikorangi Limestone primary target, which carried a 12.4 MMboe best estimate. About 160m of intermittent hydrocarbon shows will be logged. The well will be plugged back to test the Mt Messenger oil zone, which may restart Puka field production.

drilling result

Logs show 4.5m true vertical thickness of net oil pay in Mt Messenger over a 10.4m gross interval, in line with pre-drill expectations. Together with Puka-2, this moves Melbana towards modest production. Drilling continues to the main Tikorangi target.

drilling result

Pukatea-1 spudded on 24 January 2018 in New Zealand (Melbana 30%, TAG Oil 70% operator), targeting ~3,170m. The primary target carries a 12.4 MMboe best estimate and 19% chance of success. This starts the well flagged as company-changing if it succeeds.

drilling spud

Managing Director Peter Stickland resigned for health reasons and stays as a non-executive director and consultant. Robert Zammit, who led the Beehive deal with Total and Santos, becomes CEO on A$300,000 base salary.

director officer appointment

Melbana placed 150m shares at 1.4 cents to raise A$2.1m before costs, a 12.5% discount to the last price but 40% above August's entitlement offer. Funds go to Cuba and New Zealand work and working capital.

capital raising announcement

Total and Santos will fully fund a 3D seismic survey over the Beehive prospect (WA-488-P) for an option on 80%. If exercised, Melbana keeps 20% and is carried through the first well. Resolves the ongoing Beehive farm-out talks; survey expected mid-2018.

farm in farm out agreement

Melbana settled with Petro Australis, paying A$50,000 and issuing 20.8m shares, so it holds an unencumbered 100% of Cuba Block 9. It will keep its full 30% in Pukatea-1 (Nova-1 rig, late January spud, net dry-hole cost ~A$1.6m); Beehive talks continue.

joint venture update

Petro Australis failed Cuban pre-qualification, so Melbana terminated the arrangement and says it keeps 100% of Cuba Block 9. This reverses the August 40% back-in exercise; Petro Australis disputes by seeking to continue. Farm-out and 2018 drilling of up to two wells continue.

material agreement termination

Melbana notified Cuban authorities it is committing to Block 9's second exploration sub-period, starting 3 November 2017 for two years, which requires at least one exploration well. First sub-period work (200km seismic reprocessing) is complete; drilling of up to two wells is targeted mid-2018.

regulatory community update

Entitlement offer closed with shareholders applying for only 152.2m shares (31%), raising A$1.52m of the possible A$4.84m. Underwriter Patersons must take 189.8m shares (A$1.9m) for the shortfall. Directors may place the remaining shortfall at 1 cent.

capital raising announcement

Petro Australis exercised its option to take 40% of Cuba Block 9, subject to Cuban approvals. Melbana would keep 60% and operatorship, with Petro Australis paying 40% of certain back costs and future costs. This resolves the open option; the two-well plan for 2018 stays on track.

farm in farm out agreement

Melbana is raising up to about A$6.6m at 1 cent a share, a 20% discount to the 15-day average: a A$1.8m placement plus a 1-for-2 entitlement offer of up to A$4.8m, with attaching 2-cent options. Funds go to Cuba drilling preparation, not drilling itself. Significant dilution.

capital raising announcement

Operator TAG Oil delayed Pukatea-1 (Melbana 30%) from late October-November 2017 to mid-January 2018, for road, pad and rig work; the well must still be drilled before 23 February 2018. Melbana is considering ways to reduce its New Zealand funding while keeping exposure.

drilling scheduled

June quarter activities: Cuba Block 9 farm-out process started and an engineering firm engaged; first Cuba well now targeted mid-2018. Pukatea-1 now early 2018. Melbana is considering all alternatives for its Australian and NZ permits to focus on Cuba, a shift in emphasis.

quarterly activities report

Rouge Rock exercised its option for 45% of AC/P50 and AC/P51, earned by reprocessing work valued at about A$1.15m on which Melbana was free carried. Melbana now holds 55%, subject to Far Cape's 5% back-in option. A joint farm-out is planned for 2017-18.

farm in farm out completion

Cuban state oil company CUPET approved a Block 9 work program change: the 200km seismic survey is deferred to November 2019 and an exploration well is brought forward into the sub-period starting November 2017. Supports up to two wells, first spud in first half 2018.

regulatory community update

Block 9 potential lifted again to about 12.5 billion barrels in place and 637 million barrels prospective (from 612 million), due to a new shallow U1 lead of 25 million barrels. Alameda-1 (130 million barrels, 4,000m, ~80 days) and Zapato (71 million) are the top drill targets. Unrisked.

resource reserve update

Cuba Block 9 exploration potential upgraded by more than 50% to about 12 billion barrels in place, with 612 million barrels prospective (best estimate, 100%), up from 395 million. 18 prospects and leads; Alameda highgraded. Unrisked, drilling not yet committed.

resource reserve update

The PEP51153 joint venture (Melbana 30%, TAG 70%) approved drilling Pukatea-1 in Q3/Q4 2017. Best-estimate prospective resource is 12.4 million boe, chance of success raised to 19%. Melbana's dry-hole share is about A$2.5m. Firms up the earlier Q4 2016 well decision.

drilling scheduled

Regulator approved a 16-month extension of WA-488-P (Melbana 100%) Year 2 to 21 March 2018, deferring the Beehive-1 well, now anticipated in 2019. Melbana plans to farm down before drilling; the farm-out process is still underway.

regulatory community update

MEO proposes renaming itself Melbana Energy Limited with ticker MAY, subject to shareholder vote at the AGM. The board says it reflects the focus on Cuba Block 9 and other Cuban business development. A branding change, not new operations.

other

MEO raises about A$1.69m through a placement of about 46.9 million shares at 3.6 cents, a ~17% discount to the 10-day average price. Funds go to Cuba Block 9 drilling planning and working capital; a share purchase plan targeting ~A$1m is to follow.

capital raising announcement

Cuba Block 9 prospectivity assessment completed for the first of three plays: Lower Sheet Play has 8.183 billion barrels oil-in-place and 395 million barrels unrisked best-case prospective resource (100% basis; 267 million net to MEO), across 15 leads. Accelerated drilling being examined.

resource reserve update

Rouge Rock has an option to take 45% of AC/P50 and AC/P51 by funding the remaining work program, indicatively worth A$1.15m, to May 2018. MEO would keep 55% (subject to a 5% Far Cape option) and be free-carried. Joint farm-out planned for 2017.

farm in farm out agreement

MEO is assigning its 50% of WA-454-P to Origin, which then holds 100%, after failing to find a partner for the remaining 20%. Back-dated to December 2015, it avoids all 2016-17 costs including the Breakwater-1 well. Shifts focus to onshore Cuba.

asset acquisition disposition

Beehive reprocessing and inversion in WA-488-P (MEO 100%) is complete, and MEO says results exceeded expectations and support a Carboniferous carbonate reservoir with shale seal. Resource table unchanged (best case 558 MMboe); farm-out effort planned for second half of 2016.

resource reserve update

MEO raised A$1.4m by placing 140,716,573 shares at A$0.01 with London-listed Leni Gas Cuba, which becomes its largest shareholder at 15.8%. Funds go to Cuba Block 9 exploration, lifting cash to about A$5.0m.

capital raising announcement

Kea Petroleum, operator of PEP51153 and seller of its 70%, has appointed liquidators. MEO's 30% is unaffected, but it is unclear how this affects the pending sale of Kea's 70% (named here as to Puka Petroleum Limited), which had not completed.

joint venture update

Regulator approved a 12-month suspension and extension of WA-488-P (MEO 100%), with Year 2 now ending 21 November 2016. Beehive drilling is deferred to 2017 while 150km of seismic is reprocessed; MEO plans to farm down up to 80%.

regulatory community update

Andrew Purcell is proposed to become Chairman from the end of the 25 November 2015 AGM, replacing the resigning Greg Short. Resolves the open question of who would succeed Short, flagged on 30 September.

director officer appointment

Rex withdrew from its 30% farm-in to WA-488-P after changing strategy, paying MEO US$53,500 compensation. MEO returns to 100% of the permit holding the Beehive prospect and continues talks with other parties. Reverses the May 2015 Rex farm-in.

farm in farm out completion

After a portfolio review, MEO prioritised Cuba Block 9, NZ PEP51153, WA-488-P and WA-454-P, plus the Vulcan permits. It will exit NT/P68 (Heron), WA-360-P and WA-361-P within about 6 months, and keep pursuing Tassie Shoal. Heron judged too small to supply Tassie Shoal.

other

Chairman Greg Short will resign at the end of the 25 November 2015 AGM, and Stephen Hopley will not seek re-election. A new chairman will be named by the AGM. Confirms the board transition flagged in July.

director officer appointment

MEO signed the Cuba Block 9 production sharing contract with state oil company CUPET, covering about 2,380 km2 onshore. It ends over three years of talks and starts an 18-month study phase of data review and seismic reprocessing. Resolves the delayed Cuba approval thread.

material agreement

Andrew Purcell and Michael Sandy joined the MEO board as non-executive directors. Chairman Greg Short and Stephen Hopley are expected to retire on or before the 2015 AGM after a transition. Describes a board refresh after the Mosman bid.

director officer appointment

Kea shareholders approved selling its 70% of the PEP51153 (Puka) permit in NZ to Caliera Fund, subject to NZ approval. MEO keeps 30% and did not use its pre-emptive right. MEO expects the well-funded buyer to raise odds of drilling in 2015-16.

asset acquisition disposition

MEO signed a cooperation agreement with Sarawak state-owned Brooke Dockyard to jointly bid for Malaysian oil and gas opportunities. Brooke funds evaluation and exploration; on the first opportunity Brooke would hold 75% and MEO 25%. A new thread toward the new-ventures search.

material agreement

Mosman's takeover offer expired on 12 June 2015 unsuccessful, with acceptances of only 2.047% of MEO shares as of 5 June. MEO's board will keep pursuing its projects. Ends the bid that dominated the past months; MEO stays independent.

business combination

MEO signed the 30% WA-488-P farm-out to a subsidiary of SGX-listed Rex International, leaving MEO at 70%. Options could lift Rex's share, leaving MEO a fully carried 20% through Beehive-1. Beehive mean prospective resource is 925 MMstb (Carboniferous), unrisked, 16% chance of success. Completes the March-approved deal.

farm in farm out completion

MEO accepted the regulator's offer to renew AC/P50 and AC/P51 (100%, Vulcan Sub-basin) for five years. Firm work is only studies and seismic reprocessing for three years; one well per permit (about A$20m each, indicative) falls in discretionary Years 4-5. Resolves the pending renewal.

regulatory community update

Mosman raised its offer to 1 Mosman share per 5 MEO shares (from 1 per 10), freed it of all conditions except Mosman shareholder approval, and extended it to 12 June 2015. Mosman's voting power was 1.606% at 30 April.

business combination

The regulator approved the WA-454-P variation: Permit Year 4 extended six months and the Breakwater-1 well deferred to Permit Year 6, to be drilled before 8 December 2017. This resolves the 12 March application; the well is estimated at A$20m (100% basis).

regulatory community update

The unnamed international farminee has received final board approval to exercise its option for 30% of WA-488-P (Beehive). Final documents are due in about 8 weeks, subject to regulatory approvals. This confirms the 18 February option; further options could leave MEO with a carried 20%.

farm in farm out agreement

MEO signed an option deal with an unnamed international explorer for farm-ins to WA-488-P, AC/P50 and AC/P51. The farminee immediately took up 30% of WA-488-P (Beehive), subject to board approval; extra options could leave MEO with a fully carried well for 20%. Final documents due in about two months.

farm in farm out agreement

MEO is withdrawing from the Blackwood gas discovery at no cost, handing it to Eni, because its 2C resource is too small to support the Tassie Shoal methanol project. Eni transfers its 50% of the rest of NT/P68, leaving MEO focused on Heron at 100%, subject to approvals.

asset acquisition disposition

Directors recommend rejecting Mosman's revised 1-for-10 bid: about a 42.4% discount to MEO's last price, Mosman has only about A$2.26m cash and going-concern doubts, dilution risk, and a 90% acceptance condition. Target statement due by 25 February 2015.

business combination

MEO cuts corporate overheads by more than 60% versus FY2014, to about A$2.5m a year from March 2015, using more flexible employment arrangements. The CEO cites a cash balance of nearly A$10m and the sharp deterioration in the business environment.

other

Mosman raised its offer to 1 Mosman share per 10 MEO shares, double the earlier 1-for-20, and dropped its condition tied to the Neon scheme. Bidder's statement to MEO by 27 January and to shareholders by 10 February 2015.

business combination

Operator Kea shut in the Puka field in New Zealand after mechanical problems at Puka-1 that could not be fixed, citing the oil price. MEO's 30% share had been about 30 barrels a day, so its only oil income stops.

production update

MEO confirms Neon gave notice terminating the merger agreement after deeming Evoworld's offer superior, with a A$400,000 reimbursement fee payable. MEO expects Mosman to proceed with its bid and tells shareholders to take no action until the board recommends.

material agreement termination

Neon agreed with Evoworld to a recommended proportional takeover at A$0.038 per Neon share for 50% of holdings, judged superior to the MEO merger. Neon terminated the MEO merger agreement and paid MEO a A$400,000 reimbursement fee. This is a Neon announcement; it ends the planned merger.

business combination

Peter Stickland, Exploration Manager, was appointed CEO from 19 December 2014 on a 12-month term at A$400,000 a year. Jürgen Hendrich became Executive Director Special Projects until leaving on 31 January 2015.

director officer appointment

Mosman Oil and Gas (AIM-listed) announced its intention to make a takeover bid for MEO: 1 Mosman share for every 20 MEO shares. It is conditional on, among other things, the Neon merger not proceeding. A competing alternative to the Neon scheme.

business combination

MEO agreed terms for a 100% onshore exploration PSC over Cuba's Block 9 (about 2,380 km2), subject to final regulatory approval. Initial commitment is an 18-month evaluation period with withdrawal options; Petro Australis may take up to 40%. This is a new venture for MEO.

material agreement

MEO and Neon Energy propose an all-scrip merger of equals by MEO scheme of arrangement: 0.7369 Neon shares per MEO share, each group's holders owning 50%. Both boards back it. It is conditional on Neon holders rejecting Evoworld's proportional takeover and board-replacement resolutions.

business combination

Managing Director and CEO Jürgen Hendrich, in the role since July 2008, will leave on 31 January 2015. A replacement will be announced later. Leadership change comes after a year in which the company wrote off A$129.4m of exploration costs.

director officer appointment

Eni will not drill a second Heron well and withdraws from the Heron Area, so MEO regains 100% there. Eni also declined to lift its Blackwood interest above 50% and will keep 50%. This resolves the 28 October option thread; Eni's US$75m on FID is not mentioned.

farm in farm out completion

Apache chose not to exercise its option to take 70% of AC/P50 and AC/P51, so the option lapsed on 30 September 2014. MEO keeps 100% and says it will consider other farm-in offers before the April 2015 permit renewal. This ends the Apache thread.

farm in farm out agreement

Chairman calls 2013/14 unsuccessful and says limited cash will make the near term challenging. Market cap fell from A$36.4m to A$18.8m and A$129.4m of exploration costs were written off, mainly NT/P68 (A$113.2m). Management is pursuing asset sales, including Tassie Shoal via UBS.

annual report

Puka-3 reached 2,200m and found thicker reservoir, but mostly water-bearing with an oil-water contact much shallower than expected. It is being plugged and abandoned as uncommercial. MEO still gets 30% of Puka-1 and 2 oil and has six months to decide on Phase II.

drilling result

MEO launched a sale of equity in its Tassie Shoal methanol and LNG projects, appointing UBS as adviser after inbound interest. It says sale funds would help buy near-term cash-generating assets, a shift toward seeking operating income.

asset acquisition disposition

Puka-3 spudded on 22 July 2014 at the Puka field in New Zealand, targeting Mt Messenger sands at about 1,580m vertical depth. It is the main Phase I well of MEO's 30% farm-in; success would advance the field toward development.

drilling spud

MEO granted Apache an option to 30 September 2014 to take 70% of AC/P50 and AC/P51 and operatorship from April 2015 renewal, carrying MEO's costs through the first well in each permit. This advances the ongoing partial sale; Ramble On is estimated at 39 MMbbl best-case prospective.

farm in farm out agreement

The share purchase plan raised A$2,464,476 at 2.0 cents per share, issuing 123,223,800 new shares on 14 May 2014 with 442 holders participating. No shortfall, so the underwriter took no shares. Funds go to the Puka Phase I program.

capital raising announcement

MEO signed a one-year non-exclusive framework agreement with China's Hongfu Fund. MEO screens producing or near-production oil and gas projects; Hongfu helps fund accepted ones and gives MEO a disproportionate equity interest and profit share. No specific project or funding amount is committed.

material agreement

New Zealand regulator consented to transfer of a 30% interest in PEP 51153 to MEO, the final condition of the Kea farm-in announced 7 April. MEO now holds 30% of the Puka oil discovery; Phase I work is due to start before end of June 2014.

farm in farm out completion

MEO launched a share purchase plan, underwritten by Patersons to its 15% placement capacity, to raise about A$2.9m to fund the Puka Phase I program. Shares are priced at a 20% discount to the 5-day average price; each holder can apply for up to A$15,000.

capital raising announcement

MEO signed a binding farm-in with Kea Petroleum to earn 30% of New Zealand's PEP 51153, containing the Puka oil discovery, by funding NZ$4m of a NZ$5m program. An option for a further 20% costs NZ$7.5m. Puka produces about 80 bopd; 2C contingent resource is 3.0 million barrels. A new onshore oil direction after Blackwood-2.

farm in farm out agreement

Half-year to 31 December 2013 loss was A$119.8m, mainly A$116.9m exploration write-offs, versus a A$58.3m loss a year earlier. Greg Short is now Chairman. WA-454-P, WA-488-P and NT/P68 updates restate known facts.

half year report

Mubadala is exiting G2/48 effective 6 January 2014 after the farm-out drew no acceptable offer. MEO has sought to defer the well obligation into 2015 to continue at 100%; if refused, MEO also exits. This contradicts the earlier plan for a partial sale ahead of a 2014 well.

farm in farm out agreement

The Blackwood-2 production test over 3,234–3,254mMDRT recorded no flow, indicating tight, low-permeability reservoir. The tested interval was in a younger reservoir than Blackwood-1. It is a disappointing appraisal; the reservoir assessment will be updated. MEO's cost is carried.

well test result

The Ensco 104 rig was handed to the NT/P68 joint venture on 26 October and is on location. Blackwood-2 is expected to spud within days, targeting 3,360mRT over about 65 days. MEO's 50% cost is carried by Eni.

drilling progress report

Chairman Nicholas Heath, a director since 2008, will retire after the October AGM, effective 31 October 2013. Director Gregory Short succeeds him as Chairman. The vacancy will not be filled for now, leaving a smaller board.

director officer appointment

MEO booked net 2C contingent resources of 110 MMboe and net best-estimate unrisked prospective resources of 1,667 MMboe (240 MMboe risked), assessed under PRMS. This is the first consolidated portfolio figure, spanning NT/P68, WA-454-P, WA-488-P, AC/P51, G2/48 and Seruway.

resource reserve update

MEO received approval to withdraw from and surrender NT/P79 (65%, operator), farmed into December 2012, after Geoscience Australia 2D seismic showed the play could not be sufficiently de-risked. This ends the permit thread and avoids the discretionary year 6 well.

asset acquisition disposition

Origin Energy signed a binding deal to take 50% of WA-454-P and become operator, paying A$5.6m back costs and funding 80% of Breakwater-1 (cost capped at A$35m). This resolves the open WA-454-P farmout; MEO retains 50% and seeks to offload its residual 20% well exposure.

farm in farm out agreement

MEO estimated mean prospective resources at WA-488-P's Beehive prospect of 1,009 MMstb (Carboniferous) and 575 MMstb (Ordovician), stacked objectives. A farmout offering 50-75% and operatorship is being marketed, with offers sought by 31 October 2013.

resource reserve update

MEO was awarded Bonaparte Basin permit WA-488-P (4,105 km2) at 100%, next to WA-454-P, in the 2012 gazettal round. It holds the Beehive prospect, and a farmout is planned for early 3Q 2013. Work program includes an A$20m exploration well in year 3.

asset acquisition disposition

MEO upgraded Marina (WA-454-P, 100%) contingent resources using 2012 Floyd 3D seismic: oil 2C 9.2 and 3C 29 MMstb; gas 2C 169 and 3C 423 Bcf. It also assessed Marina Deep for the first time: 236 Bcf best estimate, 40% chance of success. A funding partner is being sought.

resource reserve update

Eni's second Heron well election deadline was extended to 18 December 2013 for further joint venture studies, costs borne by Eni. The well completion deadline stays 12 February 2016. Eni's extra 25% option is split into separate Heron and Blackwood options.

farm in farm out agreement

Chairman's letter sets out the strategic review findings after the disappointing drilling: funding Gurame SE-1X at 100% was regrettable and the portfolio grew too large. Measures include cutting exploration costs, limiting drilling exposure, selling project interests and adding risk oversight.

other

MEO's updated Seruway PSC assessment: Ibu Horst Juaro complex over 290 million barrels mean prospective oil (largest 230m), Ibu Alpha 24 million barrels, Kuala Langsa 1.5 Tcf contingent gas with uncertain 50-80% CO2. RBC Capital Markets appointed to advise on a partial sale.

resource reserve update

Half-year to December 2012: loss of A$58.3m, mainly a A$53.9m exploration write-off plus A$4.5m administration costs, versus a A$2.0m loss a year earlier. Reflects the failed Heron, Gurame and Gulf of Thailand wells; Ananke-1 neighbouring WA-360-P found no hydrocarbons.

half year report

MEO signed non-binding letters of intent with three shortlisted methanol buyers for Tassie Shoal's first plant, with demand exceeding capacity. It is also talking to an Asian company considering a majority stake and operatorship. Gas supply is still unresolved.

material agreement

Eni elected to drill a well on the Blackwood gas discovery in NT/P68, fully funded by Eni including testing, with MEO's 50% carried. Drilling must occur within 18 months. This resolves the open Blackwood election, so MEO does not regain 100%.

farm in farm out agreement

MEO signed a binding farm-in with Finder Exploration for a 65% interest and operatorship of NT/P79 in the Joseph Bonaparte Gulf, reimbursing A$200,000 of sunk costs. MEO carries study costs; a joint farmout is proposed before a 2014/15 well decision.

farm in farm out agreement

The Gurame SE-1XST Baong production test recorded no flow to surface across a 57m net perforated interval, even after nitrogen stimulation. The CEO calls it a significant setback. The well will be abandoned. Focus shifts to the Ibu Horst, with farmout planned for February 2013.

well test result

Heron South-1 second test flowed gas to surface, about 25% CO2. With the first test, flow rates were low, indicating low permeability and no natural fractures at the well. MEO says there is a large in-place gas resource, but productivity is the open question.

well test result

Sainampueng-1 was stopped early at 2,323m after major mud loss. Logs show no reservoir in the drilled interval, and deeper targets were not reached. MEO says the prospect was only partly tested. The well is being plugged and abandoned.

drilling result

Heron South-1 first test flowed gas too slowly to measure, which MEO attributes to low permeability. The gas is about 35% CO2. The upper zone test follows. Eni has 60 days after the well to elect a second Heron well.

well test result

Anchan-1 in G2/48 reached 1,678m on 21 November without significant hydrocarbons, a dry hole. Pearl Oil paid all costs and it met the Year 5 obligation. Sainampueng-1, which MEO partly funds, is next.

drilling result

MEO raised A$10.0m from Asian Energy Limited (managed by Noonday), issuing 40,816,327 shares at A$0.245. It fits within the 15% placement capacity and funds production testing at Gurame. This adds a cornerstone investor and dilutes existing holders.

capital raising announcement

Thai regulators approved transfer of a 50% interest in the G2/48 Gulf of Thailand concession from Pearl Oil (Mubadala) to MEO, completing the deal announced 27 Feb 2012. Anchan-1 is due about 11 Nov and Sainampueng-1 about 19 Nov.

farm in farm out completion

Heron South-1 preliminary logging data indicate two possible gas-bearing zones over a 365m gross interval (sandstones of about 120m and 115m). Eni will production test, the first positive sign at Heron. Productivity and gas composition are still unknown.

drilling result

The share purchase plan raised A$9.3m from 1,181 shareholders, issuing 46.53m new shares on 22 Oct. Implied price is about A$0.20, matching the plan's terms. Funds go to working capital. This resolves the open SPP thread.

capital raising announcement

MEO will open the WA-454-P data room on 1 November 2012 to seek a farminee (up to 50% available) for its 100% permit, aiming to conclude by end 1Q 2013. Marina-1 3C contingent resource up to 302 Bcf gas and 29.5 MMstb liquids. Farmout launch only; no partner yet.

farm in farm out agreement

MEO launched a non-underwritten share purchase plan at A$0.20 per share, up to A$15,000 per eligible holder, closing 12 October 2012. Proceeds go to working capital; all directors will participate. No total target is stated. First raising since the A$55m cash position reported.

capital raising announcement

Gurame SE-1X spudded at 0600 on 23 September 2012, MEO's 100%-funded Seruway well (up to US$25m untested). Pilot hole drilled to 202m; planned total depth about 3,374m. It tests the 1968 Gurame discovery's gas cap; P50 497 Bcf gas and 57 MMstb liquids.

drilling spud

MEO's 50% G2/48 Gulf of Thailand block holds 23 prospects and leads, over 100 MMstb unrisked mean. Sainampueng-1 (mean 10 MMstb, up to 27 MMstb) is chosen as first well, expected Q4 2012 using Pearl Oil's Ensco-85 rig. Basin not yet proven oil-generating.

drilling scheduled

Heron South-1 spudded on 24 August 2012 with Eni as operator, targeting at least 4,230mSS or the gas-water contact over about 60 days. It is MEO's first appraisal of Heron since Heron-2 found gas in 2008. MEO's best-estimate resource stays at 4.96 Tcf.

drilling spud

MEO secured the Hercules #208 rig for Gurame SE-1X, spud expected early October. No acceptable farm-in offers were received, so MEO will carry the full US$25m untested cost at 100%. Seruway farmout is to be relaunched on the Ibu Horst in early 2013.

drilling scheduled

Indonesia approved transfer of AED's 60% South Madura PSC interest, lifting MEO from 30% to 90% and making it operator. This completes the deal announced 28 December 2011; seismic is planned once an amended work program is approved, before seeking a farm-in partner.

asset acquisition disposition

After preliminary talks with major methanol players, MEO received expressions of interest for 8.3 MTA of methanol from the first Tassie Shoal plant, which has 1.75 MTA capacity. These are non-binding first steps in the post-Air Products recommercialisation; gas supply remains unresolved.

material agreement

MEO launched a farmout of up to 50% of the Seruway PSC in Indonesia, flagged earlier as a farm-in partner search. Gurame P50 prospective resources are 0.5 Tcf gas and 57 MMstb liquids; the commitment well is planned for late 2012, and MEO may keep 100% absent a compelling offer.

farm in farm out agreement

WA-360-P was renewed for five years from 6 March 2012, keeping eight of 15 blocks. MEO's interest rises to 62.5% as Petrobras and Moby leave; Cue holds 37.5%. Year 1 requires licensing 363 km of Foxhound 3D seismic, estimated A$3m.

regulatory community update

Independent Senergy assessment of WA-454-P gives Marina contingent resources of 98 Bcf gas and 6.5 MMbbl oil/condensate (2C), rising to 302 Bcf and 29.5 MMbbl (3C). Breakwater best-case prospective gas/oil is 636 Bcf and 52 MMbbl (16% chance of success). MEO aims to find a drilling partner by year end.

resource reserve update

MEO signed a binding deal to take 50% of Gulf of Thailand Block G2/48 from Pearl Oil (operator). It reimburses 50% of the 450 km2 3D survey and pays 66.6% of a 2012 commitment well, capped at US$5m gross. Oil well planned 3Q 2012, adding a third 2012 well.

farm in farm out agreement

MEO contracted CGGVeritas for three seismic surveys over its 100%-held permits: 170 line km 2D in AC/P53, 507 km2 3D over AC/P50-51, and 601 km2 3D in WA-454-P over the Marina discovery and Breakwater prospect. Acquisition starts about 16 January 2012 and runs about 55 days.

contract award

MEO signed binding agreements to buy a further 60% of the onshore South Madura PSC in Indonesia from AED for US$0.3m, lifting its interest from 30% to 90%, subject to regulatory approvals. It plans seismic and then to seek a partner for possible 2013 drilling.

asset acquisition disposition

Eni's Bathurst 3D survey in NT/P68 was 52% complete at 19 December 2011. The Ensco 109 rig is now expected to be handed to Eni for Heron-3 in June 2012, later than the early-March slot previously expected, delaying the Heron-3 appraisal well.

joint venture update

MEO ended its 2004 joint development agreement with Air Products over the Tassie Shoal Methanol Project, regaining 100% of the project. It pays a US$1m fee plus up to US$6m from future sale proceeds, and plans to seek expressions of interest from 2Q 2012 for participation in Tassie Shoal.

material agreement termination

Eni committed to the 698 km2 Bathurst 3D seismic survey over Blackwood in NT/P68, earlier than the option required, and will pay MEO's share of costs. Eni then has 365 days after the survey to decide whether to drill Blackwood-2 and keep its 50% of Blackwood.

farm in farm out completion

MEO lodged the WA-360-P renewal on 31 October 2011. After Petrobras's exit and Moby's notice of withdrawal, MEO's interest will rise from 25% to 62.5% on renewal, with Cue at 37.5%. This resolves how Petrobras's share is split, and increases MEO's share of future costs.

joint venture update

MEO's subsidiary contracted PT PGS Nusantara for a 705 km2 3D seismic survey in the Seruway PSC, worth about US$5.8m excluding processing. Acquisition is due to start around 2 December 2011 for about 30 days, meeting part of the commitment to also drill one well by end 2012.

contract award

Eni, as NT/P68 operator, contracted Ensco's ENSCO 109 jack-up rig for one 70-day slot to drill Heron-3, expected from early March 2012 after PTTEP's campaign. This firms up timing for the first of Eni's two farm-in wells at Heron.

contract award

Board approved an on-market buy-back of up to 47.7m shares (10%) over 12 months from about 13 October 2011, costing about A$7.2m at 15c. Shares have recently traded below cash backing; cash was A$90.3m at 30 June 2011.

capital raising announcement

Petrobras gave notice it will withdraw from WA-360-P at the end of the permit year, saying MEO's lead is below its materiality threshold. Its 50% is to be shared among remaining partners. MEO plans to submit a renewal application by end of October.

joint venture update

MEO won exploration permit AC/P53 (504 km2) at 100%, next to its AC/P50 and AC/P51 permits. Year 1 work is 825 km2 seismic reprocessing, and an exploration well is due in year 5. Second permit from the 2010 acreage release.

regulatory community update

Regulators approved the Eni farm-in: Eni is now registered as 50% holder and operator of NT/P68, with MEO at 50%. Eni is preparing to drill Heron-3 and is seeking a rig. Resolves the pending approval.

farm in farm out completion

MEO bought 100% of offshore Seruway PSC, North Sumatra, for US$5.0m cash up front, with future cost recovery paid from production. It has two gas discoveries and a commitment to shoot 700 km2 of 3D seismic and drill one well by end-2012.

asset acquisition disposition

MEO bought a 30% interest in South Madura PSC, onshore Indonesia, from Cooper Energy for US$0.5m cash. The licence expires 13 October 2013. A first step into South East Asia and the new-ventures plan.

asset acquisition disposition

MEO was awarded new Bonaparte Basin permit WA-454-P (4,320 km2) at 100%, containing the 2007 Marina gas and condensate discovery. Year 1 work is a 300 km new 2D seismic survey and studies (A$300,000), with an exploration well in year 5.

regulatory community update

Binding deal signed: Eni earns 50% of Heron and becomes operator by funding two wells, and may exit after the first. Eni has options on Blackwood and a further 25%, with US$75m payable to MEO at a final investment decision. Resolves the farm-out thread.

farm in farm out agreement

MEO accepted a conditional offer from an unnamed preferred farminee for up to 50% of NT/P68, including Heron (5.0 Tcf mean prospective). Binding agreements are still being negotiated, subject to regulatory approval. Blackwood stays 100% MEO. Not yet certain to complete.

farm in farm out agreement

WA-361-P was renewed for five years from 31 January 2011 across eight blocks, after seven were relinquished. It needs 150 km2 of 3D seismic and one well in year 4. MEO holds 50%. Resolves the pending renewal.

regulatory community update

Artemis-1 reached 3,500m and found no hydrocarbons in the target reservoirs; it will be plugged and abandoned. A dry hole for the ~12 Tcf prospect (32% chance of success), though Petrobras already paid its US$31.5m bonus.

drilling result

MEO placed 62.8m shares at 52c to raise A$32.6m, a 13.2% increase, mostly to North American and UK institutions, just before the Artemis-1 result. Cash rises above A$100m, for growth including Tassie Shoal; no acquisition yet met its criteria.

capital raising announcement

Songa Venus arrived at the Artemis-1 location on 23 November, ran its anchors and is ballasted for drilling. Spud of the ~12 Tcf prospect is expected the evening of 24 November, the start of the well the Petrobras deal funded.

drilling spud

MEO agreed to buy 100% of Timor Sea permits AC/P50 and AC/P51 (1,944 km2) from Silver Wave for US$270,000. Silver Wave may buy back 10%, and RedRock gets a 5% carried option. This is the first new-venture acreage since the Chief Geoscientist hire.

asset acquisition disposition

MEO received about US$39m from Petrobras for the WA-360-P farm-in (US$31.5m bonus plus ~US$7.5m back costs). About US$32.5m remains after paying Moby and Gascorp; with A$36.4m cash it will fund new ventures. Resolves the pending receipt.

farm in farm out completion

MEO opens the NT/P68 farm-out data room for the 3,700 km2 Heron area, keeping Blackwood at 100%. It proposes two appraisal wells. Heron North contingent resource (2C) is 0.39 Tcf per GCA and 0.29 Tcf per MEO. Greater Heron best-estimate prospective resource is 4.96 Tcf. Several parties have registered interest.

farm in farm out agreement

Final regulatory approval received: Petrobras is registered on WA-360-P with 50%, leaving MEO 25%. MEO will invoice Petrobras about US$31.5m bonus plus ~US$7.5m back costs. Songa Venus handover remains on track for early November Artemis-1 drilling. This resolves the long-pending approval.

farm in farm out completion

MEO signs a rig assignment agreement for the Songa Venus to drill Artemis-1, taking a slot from Shell's program. Shell estimates the rig will be released between early and late November 2010, later than the earlier September-December window's start. This resolves the open rig contract thread.

contract award

MEO agrees to buy a further 15% of WA-361-P from Gascorp for US$1m cash, lifting its interest from 35% to 50% once approved. The permit is in the final year of its term and MEO plans to apply for renewal later this year. Leads still need more work.

asset acquisition disposition

FIRB has no objections to Petrobras taking 50% of WA-360-P, clearing a key condition of the April farm-in. Remaining permit-transfer approvals are underway, a site survey is running and the rig contract is being finalised. The US$39m payment is not yet due.

regulatory community update

MEO agrees to buy a further 5% of WA-360-P from Moby for US$7m cash, to rise to 25% after the Petrobras deal closes. The extra interest is free-carried through Artemis-1, planned for late 2010. The balance is paid after Petrobras pays MEO.

asset acquisition disposition

NT/P68 is renewed for 5 years (3-year primary, 2-year secondary term) with 50% of the area relinquished. MEO holds 100% of the 5,915 km2 permit with the Heron and Blackwood gas discoveries. Appraisal drilling is planned for 2011, subject to finding a farm-in partner.

regulatory community update

MEO signs a binding WA-360-P farm-in with Petrobras, resolving the long delay. Petrobras earns 50% by funding the first well up to US$41m, pays a US$31.5m bonus plus about US$7.5m past costs, and MEO keeps 20%. Subject to FIRB approval.

farm in farm out agreement

The WA-360-P farm-in is still unsigned: one of the other three parties declined the side agreements on 17 March, leaving 85% alignment, which the farminee is weighing. MEO secured a rig option for a Sept-Dec 2010 spud and says its funds can cover Artemis-1.

joint venture update

MEO let its WA-359-P drill option lapse on 31 Dec 2009, saying studies had not de-risked the Hephaestus lead enough to fund the well. Its 60% goes back equally to Cue and Exoil, so MEO exits the permit.

asset acquisition disposition

MEO's preferred farminee has board approval to complete the WA-360-P farm-in, subject to Australian approvals including FIRB; binding documents are not yet signed. MEO triggers its well option, securing 70%, and begins rig talks to drill Artemis-1 in the second half of 2010, keeping at least 20% after farm-out.

farm in farm out agreement

MEO raises about A$27m by placing 59,898,385 shares at 45c (14.35% of capital) to institutions, to fund the WA-360-P well commitment due by 31 Dec 2009 while the farm-in is finalised. No share purchase plan offered to existing holders, who are diluted.

capital raising announcement

MEO regains 100% of NT/P68 as Petrofac withdraws from its partly earned 10% and the Tassie Shoal heads of agreement end. Petrofac gets an option to 30 June 2011 for 5%. Renewal needs 50% relinquishment of the 12,000 km2 permit. Resolves the Petrofac thread.

asset acquisition disposition

Moby Oil & Gas, which is buying Gascorp's 15% WA-360-P holder Rankin Trend, amended its deal. If MEO gives no binding drilling commitment by 31 Dec 2009, MEO must transfer 35%, lifting Rankin Trend to 50%. Adds deadline pressure on MEO.

joint venture update

MEO raised Artemis pre-drill mean gas-in-place: 10.8 Tcf for Calypso sands and 9.5 Tcf for Legendre sands, from 9.5 Tcf before. Geological chance of success is 32%. 20 parties remain; offers due 31 August, farm-out targeted by 30 September.

resource reserve update

Preliminary interpretation of the new Artemis 3D confirms it as an attractive target, with a larger structure and amplitudes consistent with a possible gas-water contact. Gas-in-place will likely exceed 9.5 Tcf. MEO says it is confident of a farm-in this quarter; offer deadline may be extended.

drilling result

MEO signed PGS to shoot a 250 km2 Artemis 3D seismic survey in WA-360-P for about US$3.4m. By paying 90% it lifts its interest to 70% and extends its drill/drop option to 31 Dec 2009. Data due about 90 days after completion.

contract award

Zeus-1 is a dry hole: pressure testing confirmed the primary Legendre sands are water bearing, and the well is being abandoned. MEO calls it disappointing but sees untested NW Shelf potential, and plans a WA-360-P farm-out from 2Q09 for a 2010 well.

drilling result

Zeus-1 reached 3,642m. Elevated gas readings were seen over about 44m of Legendre, but logs were inconclusive. The secondary Forestier target lacks reservoir. Further wireline testing follows, so the result is mixed and not yet confirmed.

drilling result

Partner Cue Energy reported that Zeus-1 spudded on 17 January 2009, with 30-inch casing run and cemented to 271m. The well is testing a complex structural/stratigraphic play with the Legendre Sandstones as a primary target.

drilling spud

RDI's options over the Timor Sea projects (NT/P68, Tassie Shoal methanol and LNG) lapsed unexercised on 31 December 2008 because RDI did not list. MEO plans a farmout process in the June quarter. Rig handover is expected 8 January.

material agreement termination

Partners grant MEO a 12-month extension, to 31 December 2009, of the drill/drop decision on WA-359-P and WA-360-P (60% each), in return for more 3D seismic. MEO will seek farm-in partners to drill in 2010. Cyclone Billy delays the rig to about 5 January.

farm in farm out agreement

RDI's IPO is deferred into 2009, so its options to farm into WA-359-P and WA-360-P (35% each) lapsed on 1 December. RDI still funds 80% of Zeus-1 to US$31.25m. MEO expects replacement partners soon.

farm in farm out agreement

Chairman Warwick Bisley will retire after the November AGM, with Nick Heath chairman-elect. Andy Rigg leaves at end October. Michael Sweeney and Stephen Hopley join as non-executive directors from 1 October, which MEO says completes its board renewal.

director officer appointment

Cue and Gascorp decline to fund 5% each of Zeus-1, so their combined 10% reverts to MEO, lifting its WA-361-P interest from 25% to 35%. MEO pays 20% of well costs to a US$31.25m cap.

farm in farm out completion

Co-founder Chris Hart retires as Managing Director on 25 July and stays as a non-executive director until 30 September 2008. Jürgen Hendrich joins the board as Managing Director and CEO, as foreshadowed in May.

director officer appointment

Contracts are signed for the Songa Venus rig to drill Zeus-1 in late October 2008. Reprocessed 3D shows Class 3 AVO responses like the Perseus gasfield, and MEO says Zeus could hold more than 10 Tcf. Gas is not proven.

contract award

MEO forms an alliance with Clive Palmer's RDI: it funds most of up to 9 NW Shelf wells, leaving MEO 25% of WA-361-P, and carries MEO's 20% in the Timor Sea. Mineralogy placed 21.391m shares at $0.55 ($11.8m). Timor Sea funding depends on RDI's IPO.

farm in farm out agreement

Jürgen Hendrich, a Tolhurst corporate finance director and former Esso geologist, becomes CEO from 16 June 2008. Co-founder Chris Hart is retiring from the executive role after a transition, with Hendrich to take over as Managing Director.

director officer appointment

A letter of award secures the Songa Venus rig to drill the Zeus prospect in WA-361-P in late 2008. Reprocessed Rosie 3D shows positive AVO responses similar to the Perseus gasfield. MEO plans to farm out part of its 60% to fund most of the well.

contract award

MEO estimates 2,473 Bcf of raw gas in place (contingent, most likely) in Greater Blackwood, with roughly 1,700 Bcf recoverable on its assumptions (MEO's own, 70% recovery). The first Tassie Shoal methanol plant needs about 1,400 Bcf. A second appraisal well, Blackwood-2, is needed.

resource reserve update

Heron-2 has been formally declared a gas discovery over the Heron North Elang/Plover. Testing recorded 6-8 MMscf/d before Cyclone Helen and well collapse. The joint venture is planning a re-drill to test the 164m Plover gas sands, following up the earlier abandonment.

drilling result

Blackwood-1 recovered gas to surface by MDT sampling and was declared a discovery, then plugged and abandoned as planned. Gas is relatively dry with 25-30% CO2, similar to Evans Shoal gas and suited to methanol. Resolves the Blackwood wildcat as a success after the Heron-2 disappointments.

drilling result

Blackwood-1 reached 3,286m and found gas in the Flamingo and Plover sands, with a 126m gross hydrocarbon column against a 57m pre-drill mid case. Mud gas showed no CO2. Early sign of success for the sole-risk wildcat, pending gas sampling.

drilling result

Blackwood-1 is due to spud 1 February in NT/P68, targeting the Plover to 3,454m. MEO is funding it 100% as a sole risk wildcat. Pre-drill mid-case recoverable gas is 1,031 Bcf, with a 32% chance of geological success.

drilling scheduled

Heron-2 has been plugged and abandoned. Only the Elang sand flowed (over 6 MMscf/d); the Darwin produced minor hydrocarbons with no consistent flow. The rig has moved to Blackwood-1, due to spud 1 February. MEO still believes significant resources may exist.

drilling result

The Epenarra Darwin production test failed to flow gas to surface despite perforation and two acid washes, undermining the main Heron-2 target. MEO is considering suspending the well and applying for a retention licence over Heron North on the Elang gas. Second well choice is pending.

well test result