Past year: ▼ 77%(0.30c – 1.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
8 Apr 2008regulatory community update● Neutral
PGS has finished acquiring 250 line km of 2D seismic in WA-359-P, interrupted by Cyclone Melanie in December 2007. This completes the NW Shelf 2D work, with processing to follow. MEO holds 60% in the permit.
8 Apr 2008contract award▲ GoodMajor
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.
26 Mar 2008contract award● Neutral
PGS Australia is awarded a contract for about 350 sq km of 3D seismic over Blackwood, starting 20 April 2008 and taking 25 days. It is meant to sharpen mapping and pick locations for appraisal wells, following the Blackwood-1 discovery.
14 Mar 2008resource reserve update▲ GoodMajor
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.
12 Mar 2008drilling result▲ GoodMajor
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.
11 Mar 2008drilling result▲ GoodMajor
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.
7 Mar 2008investor presentation● Neutral
International investor presentation calls Heron North and Blackwood 2008 gas discoveries and says appraisal drilling is planned for late 2008. MEO is seeking a farm-in partner to fund appraisal and FEED. Zeus drilling is planned for Q4 2008. Mostly repeats known facts.
3 Mar 2008drilling result▲ GoodMajor
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.
25 Feb 2008half year report● Neutral
Half-year report to 31 December 2007 shows a net loss of $648,559. It recaps Heron-2 (Elang flowed up to 8 MMscf/d, Darwin failed), the Blackwood-1 spud and NW Shelf farm-in. It says Heron-3 is planned later in the year to retest the Heron North Plover.
25 Feb 2008drilling progress report● Neutral
Blackwood-1 report no. 4: the 12¼in hole reached 3,135m, about 20m above the Plover. Formation tops are about 200m shallower than predicted, so the Top Plover is revised to 3,153m from 3,351m. Plover sands were expected to be entered that day.
18 Feb 2008drilling progress report● Neutral
Blackwood-1 report no. 3: the 17½in hole reached 1,265m and 13⅜in casing is being run. The 12¼in hole to total depth starts later in the week. Top Plover is still estimated at 3,351m. No results yet.
8 Feb 2008director officer appointment● Neutral
Director Walter Dewé is resigning for personal and family reasons, effective 21 February 2008, after 10 years. A replacement will be announced later.
7 Feb 2008drilling progress report● Neutral
Blackwood-1 report no. 2: spudded 1 February; 20in casing set at 455m and blowout preventer tested. Now drilling the 17½in hole toward 1,265m. Top Plover is expected at 3,351m. No results yet.
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.
24 Jan 2008investor presentation● Neutral
General meeting presentation: Darwin failed with no permeability at the well, which MEO attributes to a depth conversion error that put it on the crest. Next well is Blackwood-1 targeting Plover (~2 Tcf). MEO has A$63m cash. Meeting to ratify the 50m share placement.
21 Jan 2008well test result▼ BadMajor
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.
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.
16 Jan 2008investor presentation● Neutral
January investor update repeating Heron-2 findings: Elang flowed about 6 MMscf/d, Plover logs look promising but untested, and the Darwin test is due this week. Says the Plover needs a dedicated appraisal well. 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.
8 Jan 2008flow test result▼ BadMajor
Heron-2 testing resumed after Cyclone Helen. Only the 15m Elang sand flowed gas, about 6 MMscf/d, dry and high in CO2. Blockage and mud-loss treatment appear to have stopped the Plover flowing. MEO plans a sidetrack to redrill the Plover, then test it and the Epenarra.
4 Jan 2008flow test result● NeutralMajor
Heron-2 began flowing gas to surface from the Plover, but a prolonged clean-up is needed because lost drilling mud and loss-circulation treatment impaired the formation. The well was shut in for Cyclone Helen, and MEO called a trading halt until 8 January. No flow rates or gas quality are reported yet.
31 Dec 2007regulatory community update▲ Good
All 250 sq km of Northwest Shelf 3D seismic was acquired on time and under budget. About 40% of the 250 line km of 2D in WA-359-P is done before Cyclone Melanie halted work. The rest will be shot when the vessel is next nearby.
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 2007regulatory community update● Neutral
Northwest Shelf 3D seismic is 52% acquired (about 133 sq km), ahead of schedule with excellent data quality. Completion is expected by 27 December, then 2D work starts in WA-359-P.
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.
19 Dec 2007admin correction● Neutral
Administrative notice under section 708A confirming the issue of 50,000,000 ordinary shares on 19 December 2007, matching the 12 December placement. No new information.
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.
