Past year: ▼ 77%(0.30c – 1.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
13 Dec 2007regulatory community update● Neutral
Seismic acquisition has begun on the Northwest Shelf permits: the Orient Explorer started 250 sq km of 3D over WA-360-P and WA-361-P, about 18 days, then 250 line km of 2D in WA-359-P. Reprocessing of the Rosie 3D over the Zeus feature is starting. Continues the 2 Nov plan.
12 Dec 2007capital raising announcement▲ GoodMajor
MEO placed 50 million shares at A$1.25 to raise A$62.5m before costs, heavily oversubscribed. Funds go to production testing, about 800 sq km of new NT/P68 3D seismic (March 2008), Northwest Shelf seismic, LNG and methanol project studies, and contingency. Earlier funds already covered dry-hole costs.
What it means for a shareholder
50.0m new shares at A$1.25 to raise about A$62.5m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (800 at the issue price), your slice goes from 0.000238% to 0.000207% of the company. To keep it you'd need 119 more shares - about A$149 at the issue price.
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12 Dec 2007investor presentation▲ Good
December investor update. Heron-2 hit the Elang/Plover (top Elang 3,929m, about 237m high to Heron-1) with positive gas readings, then stopped at 3,983m on mud losses of up to 60 bbl/hr. It also shows downstream project NPVs (LNG US$2.5b, methanol US$950m) and the raising's use of funds.
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.
6 Dec 2007well test result▲ GoodMajor
Partners approved a production test of the Epenarra Darwin Formation in Heron-2, citing gas saturation over 50m of Facies C (3,109-3,159m), no CO2 in mud gas and 5-12% porosity. It follows the 27 Nov logs. The test can only occur after drilling, and possible testing, of the deeper Plover.
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.
28 Nov 2007investor presentation● Neutral
AGM presentation largely restating known facts: Heron-2 has 9⅝in casing being set at 3,360m, with positive gas and reservoir indications in the Darwin Formation (Epenarra), and an 8½in hole is planned to about 4,300m. No new figures.
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.
9 Nov 2007investor presentation● Neutral
November investor update largely restating known facts. Heron-2 casing is due 10 November and the Darwin Formation is expected around 20 November. It cites about 11 Tcf of potential gas-in-place in NT/P68 and the new Northwest Shelf permits.
8 Nov 2007price query● Neutral
MEO said Santos Limited had sold its remaining holding of about 12.3 million MEO shares, placed by Tolhurst to Australian funds and private clients. Heron-2 was drilling the 17½-inch hole at about 1,670m.
2 Nov 2007contract award● Neutral
MEO signed a Letter of Award with PGS for 3D seismic (about 250 sq km) plus 250 line km of 2D over its new Northwest Shelf permits, starting around 1 December 2007. Reprocessing of 600 sq km of existing 3D data over the Zeus feature went to Dayboro Geophysical.
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.
31 Oct 2007quarterly activities report● Neutral
September quarter report: the share purchase plan raised a further A$18.24m (A$10.388m cash in the quarter), leaving 334,931,570 shares on issue. Heron-2 is estimated at 50-75 days. The second well would be Heron-3B, Heron-3C or Blackwood-1, depending on results. FEED is planned for 2008 if drilling is positive.
29 Oct 2007annual report● Neutral
MEO's 2007 Annual Report. The extract shows Cambrian holding 21.31% and Santos 5.43% plus 0.75% in a second holding. It lists A$98.5m raised and the new Northwest Shelf interests. The extract gives no financial figures.
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.
