MEO Australia Spuds Blackwood-1

MEO Australia Limited submits this drilling report for the period ending February 18, 2008.

Blackwood-1 was spudded at 1830 hours (ACST) on February 1, 2008 in Exploration Permit NT/P68.

The rig has completed drilling the 17 1/2 inch hole to the section target depth of 1265m and is currently running the 13 3/8 inch casing string. Following cementing of the 13 3/8 inch casing and successful leak-off test, the Blow-out Preventer stack (BOP) will be pressure tested.

The drilling of the 12 1/4 inch hole to total depth is expected to commence later in the week. The estimated depth of the Top Plover Formation target reservoir of the Blackwood structure is 3351m.

Blackwood-1 is being drilled by Seadrill's West Atlas jack-up rig. 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 hydrocarbon samples in the Plover Formation of the Blackwood structure.