MEO Launches Farm-Out Process to Appraise Heron Discovery

MEO Australia is seeking to farm-out a portion of the NT/P68 permit in the Bonaparte Basin, Northern Territory. MEO currently owns 100% interest in the 5,900-square kilometer exploration permit, which is in its first year of the three-year firm work program that requires acquisition of 3D seismic and other studies.

The farm-out pertains to the area containing the Heron gas discovery and other prospectivity. MEO alleges the potential resources could host an LNG gas development.

The Heron-2 well was drilled into the Heron North structure in 2007/2008, but operational difficulties caused drilling to cease prematurely, without encountering a gas/water contact. There is potential that the interpreted gas column could extend another 689 feet (210 meters) below the base of the Heron-2 well to the interpreted structural saddle that carries over to the nearby Evans Shoal gas field. Heron-2 flowed gas to the surface during an open-hole drillstem test during which the hole bridged off just below the uppermost sand interval being test, precluding any contribution from deeper in the hole. The gas quality recovered during the DST was inconsistent with the more liquids rich gas observed in the mud returns while drilling the lower section of the hole.

As part of the farm-out terms, MEO is proposing to drill two appraisal wells – one on Heron South and one on Heron North – to ascertain whether the Greater Heron structure has enough gas and is of great quality for an LNG development.