MEO Australia Drills Deeper in Blackwood

MEO Australia Limited submits this drilling report for the period ending 1000 hours, February 1, 2008. Blackwood-1 is scheduled to be spudded later today, Friday, February 1, 2008 in Exploration Permit NT/P68.

The rig was pinned over the Blackwood-1 location at 9 am, January 30, 2008, pre-load and skidding of the cantilever into drilling position has been completed. The rig is currently picking up and racking drill pipe into the derrick, making up the bottom hole assembly and preparing to commence drilling the 26 inch hole to 465m.

Blackwood-1 is being drilled by Seadrill's West Atlas jack-up rig contracted to MEO for two firm wells. The Blackwood-1 wildcat well is being 100% funded as a sole risk operation by MEO. The well is designed as a vertical well to penetrate, log and recover gas samples in the Plover Formation of the Blackwood structure.