Past year: ▼ 77%(0.30c – 1.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
14 Dec 2012drilling progress report● Neutral
Heron South-1 was plugged and abandoned and the rig released 14 December, as planned after testing. MEO will remap and update the Heron resource. Eni's 60-day window to elect a second Heron well is running.
13 Dec 2012well test result▼ BadMajor
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.
13 Dec 2012farm in farm out agreement● Neutral
MEO and Eni agreed to defer Eni's Blackwood well election deadline by one month to 4 February 2013. If Eni does not elect to drill, MEO regains 100% of the Blackwood area. This updates the earlier 5 January date.
13 Dec 2012drilling progress report▼ Bad
Sainampueng-1 was plugged and abandoned and the rig released 9 December, safely. MEO will evaluate the well, including a ~60m shale with gas shows that may indicate source rock. Confirms the earlier dry-hole outcome.
6 Dec 2012well test result▼ BadMajor
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.
6 Dec 2012drilling result▼ BadMajor
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.
6 Dec 2012drilling progress report▼ Bad
Gurame SE-1XST logging is done. Mud-loss problems at 3,145m and well integrity risks stopped further drilling, so the Belumai and deeper targets were not evaluated. The well was plugged back to 2,926m ahead of the Baong production test.
30 Nov 2012drilling progress report● Neutral
Sainampueng-1 began drilling 23 November and was at 2,237m on 29 November after 9⅝in casing was set at 1,441m. It targets a 10-25 MMstb prospect. No result yet.
28 Nov 2012drilling progress report● Neutral
Gurame SE-1XST drilled to 3,145m with strong gas shows, then lost mud circulation, which MEO attributes to natural fractures in the Belumai sands. The well was stabilised and logging is next. Baong production testing follows. No flow result yet.
28 Nov 2012well test result▼ BadMajor
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.
28 Nov 2012other● Neutral
ASX lifted MEO's trading suspension on 28 November after the Heron South-1 announcement. Administrative notice.
27 Nov 2012other● Neutral
At MEO's request, shares were suspended on 27 November pending Heron South-1 production test results for the lower zone. MEO expected to announce on 28 November, when the suspension would end.
23 Nov 2012drilling result▼ BadMajor
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.
21 Nov 2012drilling progress report● Neutral
Heron South-1: the 4½in slotted liner is installed to 4,453.5m and the well displaced to brine. A test string is being installed to test the lower of the two gas zones first. No test results yet.
20 Nov 2012admin correction● Neutral
Administrative section 708A notice confirming 40,816,327 shares were issued to Asian Energy Limited, as announced 19 November. No new information.
19 Nov 2012drilling progress report▲ Good
Gurame SE-1XST logs show gas-saturated Baong sands, with fractures and some matrix permeability. A 7in liner is cemented at 2,961m. MEO will production test the Baong, funded by a $10m placement, after first drilling toward the Belumai sands.
19 Nov 2012capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
40.8m new shares at A$0.245 to raise about A$10.0m. That's 6.5% dilution: every existing holder's slice gets 6.5% smaller. If you held A$1,000 of shares (4,082 at the issue price), your slice goes from 0.000696% to 0.000651% of the company. To keep it you'd need 284 more shares - about A$70 at the issue price.
Create a free account to see this worked out for your own holding.
16 Nov 2012other● Neutral
Updated engineering estimates for the first Tassie Shoal methanol plant put capital cost at US$1.5 billion (20% contingency) for 1.75 MTA, accurate to +/-25%. MEO is evaluating pricing and terms from major buyers to shortlist long-term buyers, following April's interest for 8.3 MTA. No sales agreed.
16 Nov 2012other● Neutral
Notice that videos of the 2012 AGM and exploration update are on the MEO website. No substantive content.
16 Nov 2012drilling spud● Neutral
Anchan-1 spudded 15 November in the Gulf of Thailand G2/48 concession, operated by Pearl Oil (Mubadala). Expected to take 7-10 days. It meets the Year 5 obligation, which was before MEO's entry, so Pearl Oil pays all costs. Sainampueng-1 follows.
15 Nov 2012investor presentation● Neutral
AGM technical supplement repeats well status. It adds that Gurame SE-1XST found gas over a gross 237m Baong interval, with a 13.4m core (12.36m recovered) and fracturing seen. Eni's Blackwood decision is due by 5 January. No new decision.
15 Nov 2012investor presentation● Neutral
AGM presentation repeats known facts: four wells across three countries, Heron South-1 preparing to test two gas zones, Gurame SE-1XST showing gas, Anchan-1 and Sainampueng-1 next, and farm-outs planned for WA-454-P, Seruway and AC/P50-51. No new results.
14 Nov 2012other● Neutral
Updated engineering estimates for the Tassie Shoal LNG project (MEO 100%) put capital cost at US$2.0 billion for 3.0 MTA, with +/-25% accuracy at pre-FEED stage. MEO claims a US$2-4 billion cost advantage over onshore and floating LNG. These are MEO's own comparisons.
14 Nov 2012drilling progress report● Neutral
Heron South-1: the 7-inch liner is cemented at 4,255m. A clean-out run precedes the 4½-inch slotted liner, then two separate production tests. No test results yet.
12 Nov 2012drilling progress report▲ Good
Gurame SE-1XST cut a 13.4m core (92.2% recovered) in the Baong sands, then drilled to 2,962m with gas shows throughout despite a lost-circulation zone. Logging is under way. The CEO is highly encouraged; no flow test yet.
7 Nov 2012drilling progress report▼ Bad
Heron South-1: the 7-inch liner stopped at 4,255m, short of total depth, so a 4½-inch slotted liner will be run to 4,454m to reach the lower zone. The CEO says preparations are taking longer than anticipated. Production testing is delayed.
5 Nov 2012drilling progress report▲ Good
Gurame SE-1XST: 9⅝-inch casing cemented at 2,677m, and drilling to 2,794m met elevated gas shows from 2,776m in the Baong sands. A 30m core is being cut. Shows are early; no test result.
5 Nov 2012farm in farm out completion▲ GoodMajor
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.
30 Oct 2012drilling progress report● Neutral
Heron South-1: Eni confirms it will production test the two gas-bearing intervals separately, with perforation intervals not yet set. The hole is being reamed before a 7-inch liner is run. No test results yet.
29 Oct 2012drilling progress report● Neutral
Gurame SE-1X sidetrack reached the 9⅝-inch casing point at 2,681m, and casing is being run. Coring toward about 3,374m follows. No reservoir result yet.
