MEO Gains 60% Interest in 3 Nortwest Shelf Offshore Permits

MEO Australia, via its wholly owned subsidiary North West Shelf Exploration, has farmed into three Northwest Shelf offshore permits operated by Cue Energy Resources.

MEO has secured a 60% participating interest in these highly prospective exploration permits via a seismic acquisition option.

With many prospective oil and gas leads, the most obvious significant potential appears to be in WA-361-P, immediately northwest of the Perseus Gasfield and on the northern flank of the Goodwyn Gasfield, where a thick sequence of interpreted Legendre shoreface and shallow marine sandstones are present in the Keast Graben.

A potential stratigraphic trap, Zeus, has been identified, which is thought to be a similar play and analogous to the Perseus Gasfield (12 Tcf) and to the new Woodside Persephone-1 discovery on the eastern flank of the North Rankin Gasfield.

Zeus is a Legendre shoreface/shallow marine sandstone play within the fault bounded NNEtrending Keast Graben. The Legendre Formation appears to thicken into the graben controlled by growth of basin margin syn-depositional faults, thinning onto northern and southern high blocks. Generation and migration modeling from Triassic source rocks in the Keast Graben underlying Zeus has confirmed a likely petroleum charge mechanism. Zeus has prospective multi-TCF in place potential of 5 to 15 Tcf over 350 sq km of closure with up to 100 m of net pay.

MEO has secured the PGS Australia seismic acquisition vessel, M/V Orient Explorer to acquire approximately 300 sq km of new 3D seismic data. The new data and selected reprocessing of the existing 3D dataset, followed by AVO (amplitude variation with offset) and other studies, are expected to further delineate the prospects.

In permits where MEO decides to fund the cost of a well, the drilling is likely to occur in 2009.