Past year: ▼ 77%(0.30c – 1.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
1 Feb 2008drilling scheduled● NeutralMajor
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.
31 Jan 2008drilling result▼ BadMajor
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.
18 Jan 2008drilling progress report● Neutral
Heron-2 weekly report no. 13: the production packer is set at 3,075m and perforating guns are being run, with the Epenarra Darwin casing perforation expected the next morning. No new results.
15 Jan 2008drilling result▼ BadMajor
The Plover re-drill was abandoned after the sidetrack hit unstable Elang shale, which collapsed and stuck the bit at 3,967m. A separate new well is needed for the Plover. The Epenarra Darwin production test is brought forward to later this week.
11 Jan 2008drilling progress report● Neutral
Heron-2 weekly report no. 12: the sidetrack is set up after the packer was milled out and a whipstock installed. Drilling of the 6in hole is due to start, with about 5 days to finish and a Plover production test next week. Repeats known results.
28 Dec 2007drilling result▲ GoodMajor
Logs show Heron-2 has drilled 202m of Plover with about 164m of gross sandstone that appears gas charged, with no CO2 recorded and 5-10% porosity. Partners approved a barefoot production test of the Plover, due the week of 31 December. The gas-water contact (4,260m) has not yet been reached.
27 Dec 2007drilling progress report▲ Good
Heron-2 weekly report no. 11: the 6in hole is at 4,182m with significant mud gas readings in the Plover. Mud losses from higher permeability were controlled. Partners will review logs, then either drill on to 4,300m or start production testing.
20 Dec 2007drilling progress report● Neutral
Heron-2 weekly report no. 10: 7in liner set to isolate the over-pressured Flamingo Formation, and the 6in hole is now at 4,016m in the upper Plover. Target depth stays 4,300m. No new results.
13 Dec 2007drilling progress report● Neutral
Heron-2 weekly report no. 9: depth 3,989m, in the top of the Plover reservoir. Logging and pore-pressure testing are done, and a 7in liner is being run. Drilling of the 6in hole resumes early next week toward 4,300m.
7 Dec 2007drilling progress report● Neutral
Heron-2 weekly report no. 8: depth 3,912m, just above the Elang/Plover target, with the bit being changed to drill faster. Drilling is due to resume 9 December toward about 4,260m. Repeats the Epenarra test approval; no new results.
30 Nov 2007drilling progress report● Neutral
Heron-2 weekly report no. 7: 9⅝in casing is run and cemented at 3,360m. The rig is testing the blow-out preventer for high-pressure operation and expects to start the 8½in hole over the weekend. The Elang/Plover top is prognosed around 3,900m. No new results.
27 Nov 2007drilling result▲ GoodMajor
Heron-2 logs through the Darwin Formation preliminarily indicate Facies C is gas bearing, and 18 side-wall cores were taken. Partners are reviewing the data before deciding on flow testing. MEO says it still cannot confirm gas quality or a recoverable resource until gas is recovered.
23 Nov 2007drilling progress report▲ GoodMajor
Heron-2 hit the top of the Darwin Formation at 3,062m, 62m higher than predicted, with elevated gas readings in the mud. MEO calls this encouraging but says it cannot yet confirm gas quality or a recoverable resource. Logging and testing are still needed.
20 Nov 2007drilling progress report● Neutral
Heron-2 is drilling the 12¼-inch hole to 3,440m. MEO expects it to reach the predicted gas-bearing Epenarra Darwin Formation on 22 November 2007. No results yet.
15 Nov 2007drilling progress report● Neutral
Heron-2: 17½-inch hole finished at 2,125m and 13⅜-inch casing cemented. The rig is switching to synthetic mud and preparing for high-pressure operation. The 12¼-inch hole to 3,440m starts around 17 November, with the Darwin Formation top predicted at 3,124m.
9 Nov 2007drilling progress report● Neutral
Heron-2 is drilling the 17½-inch hole at 1,950m in the Vee Formation, toward 2,100m, with 13⅜-inch casing due to be set on 10 November. No hydrocarbon results yet.
2 Nov 2007drilling progress report● Neutral
Heron-2: 20-inch casing landed and cemented, and a 15,000 psi blow-out preventer is being installed for the higher pressures predicted in the Plover sandstones. Drilling of the 17½-inch hole to 2,200m is about to start. No results yet.
25 Oct 2007drilling progress report● Neutral
Heron-2 weekly report: the 26-inch hole is at 990m, heading to 1,100m, with 20-inch casing to be set next. Drilling at 14m/hr. No hydrocarbon results yet; pre-drill estimates unchanged.
25 Oct 2007farm in farm out agreement● Neutral
Cue Energy confirms the same farmout: MEO earns 60% in each of the three Northwest Shelf permits and becomes operator, up to 70% if it funds the first well. Cue says it is subject to government approvals, a condition not in MEO's release.
25 Oct 2007farm in farm out agreement▲ GoodMajor
MEO farmed into three Northwest Shelf permits (WA-359-P, 360-P, 361-P) operated by Cue, earning 60% and becoming operator by funding seismic; up to 70% if it funds a well. Targets the Zeus prospect, with 5-15 Tcf in-place potential per MEO. Drilling likely 2009.
19 Oct 2007drilling progress report● Neutral
Heron-2 weekly report: after about five days of rig commissioning and repairs, the 26-inch hole began on 19 October. Well is high pressure/high temperature. Pre-drill mean gas-in-place is 5,620 Bcf for Epenarra, 3,790 Bcf Heron North, 1,750 Bcf Heron South. No results yet.
15 Oct 2007drilling spud▲ GoodMajor
Heron-2 spudded late on 12 October 2007 in NT/P68 (MEO 90%, Petrofac 10%). The 30-inch casing is set at 108m; planned depth is 4,300m, testing the Epenarra Darwin Formation and deeper Elang/Plover. Heron-3 horizontal well follows depending on results.
5 Oct 2007drilling progress report● Neutral
The West Atlas rig arrived safely in Darwin on 4 October and was unloaded. A 36-hour tow to the Heron-2 site is due to begin shortly, with spud still expected around 11 October. NT's Chief Minister cited about A$100m of drilling spend by Christmas.
12 Sept 2007drilling progress report● Neutral
Fugro's vessel finished shallow coring at Heron-2, Heron-3B, Heron-3C and Blackwood-1, giving seabed data needed for rig insurance. It now moves to Tassie Shoal for deeper coring (about three days), enabling FEED studies if drilling confirms commercial gas.
12 Sept 2007resource reserve update▲ Good
Fugro's analysis of 2006 3D seismic outlines gas-charged zones in the Darwin (Epenarra) and Elang/Plover reservoirs, which the company says raises confidence in its mapping and well locations. This is not a resource change. Rig still on schedule for 6 October spud.
21 Aug 2007drilling scheduled▲ Good
Drilling remains on schedule: West Atlas rig to be handed to MEO by 22 September, helicopter available from 15 September, and Fugro coring starts about 31 August. Heron-2 is expected to spud around 6 October 2007, firming up the earlier September estimate.
6 July 2007drilling progress report▲ Good
Fugro finished seafloor surveys at the four planned wells (Heron-2, Heron-3A, Heron-3B, Blackwood-1) without incident. Fugro also won the contract for shallow coring, starting early August, then Tassie Shoal boreholes to allow FEED studies in 2008 if drilling succeeds.
4 June 2007farm in farm out agreement▲ GoodMajor
Petrofac Resources farms into NT/P68 for 10% by funding 25% of 2007 appraisal well costs, with an option to reach 15% and to join the LNG/methanol projects. Alongside, a placement of 41.25m shares at A$1.00 raised A$41.25m, plus a share purchase plan. Follows the earlier partner talks.
28 May 2007drilling progress report▲ Good
Fugro's reservoir study and JRS's stress work identified target zones and fracture orientation for the appraisal wells, now fixed. Site surveys at well locations (35-70m water) are under way. MEO is negotiating with several farm-in parties but plans to sell only a minority interest.
5 Apr 2007drilling progress report▲ Good
PGS delivered the final Epenarra depth-migrated 3D volume on schedule; interpretation has begun. Fugro-Jason and JRS were hired for fracture studies to guide Heron-2, and Upstream Petroleum was appointed to manage the 2007 drilling campaign.
