MEO Updates on Drilling at Blackwood-2 Well in Timor Sea

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MEO Australia Limited, an independent oil and gas company, announced Friday that the wireline logging, pressure testing and coring program at Blackwood-2 in Permit NT/P68 in the Timor Sea, Australia has been completed. The presence of gas and reservoir productivity could not be conclusively established during this wireline logging phase.

MEO has been advised by the NT/P68 Operator that Blackwood-2 will be production tested to resolve uncertainties regarding fluid content and reservoir productivity.

Test interval(s) are yet to be advised and will be reported in due course.

Progress Summary

Progress since last report:

  • Carried out wireline logging and side wall coring program
  • Ran 7 inch (178 millimeter) liner

Present Operation (at 06:00 Darwin time, Dec. 13):

  • Completing installation of 7 inch (178 millimeter) liner

Outlook:

  • Complete installation of 7 inch (178 millimeter) liner
  • Carry out production test
  • Plug and abandon well

Background

The Blackwood-2 appraisal well is located approximately 4.9 miles (8 kilometers) from the Blackwood-1 discovery well. Further information regarding the NT/P68 Exploration Permit is available on the MEO website.

The drilling of Blackwood-2 is an obligation under the NT/P68 Farm-in Agreement (FIA) dated May 17, 2011 between Eni Australia Limited (Eni) and MEO. Under the FIA and subsequent amendment, MEO’s 50 percent participating interest share of the costs of the well will be carried.

MEO’s CEO and MD Jürgen Hendrich commented on the announcement:

“Blackwood-2 was designed to investigate the possibility of a deeper Gas-Water-Contact than inferred from Blackwood-1 pressure data. The wireline logging program in Blackwood-2 could not conclusively establish the presence of deeper gas, hence production testing will be undertaken to resolve this uncertainty.”

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