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MEO Australia Adds Singapore Investor As Substantial Shareholder

MEO Australia (ASX: MEO) has added Singapore's Asian Energy to its register as a substantial shareholder with a 7.56% interest.

The new addition follows the completion of a private placement of 40.8 million shares at A$0.245 each to the company, which has raised $10 million.

Asian Energy is a company managed by Singapore-based investment advisor Noonday Asset Management Asia.

Noonday has extensive expertise in investing across Asia having made significant investments in the Asian energy sector, particularly in Indonesia, and also as an exclusive sub-advisor to San Francisco-based global fund manager Farallon Capital Management.

The cash is being used to fund production testing of MEO's Gurame-1XST1 well offshore north Sumatra.

MEO has committed to production testing the Gurame SE-1XST well in the Seruway production sharing contract after wireline logging results coupled with gas shows encountered while drilling indicated that the Baong sands are gas saturated.

Gurame SE-1X well was selected as the lowest risk drill-ready candidate for early development.

It will be drilled to a total depth of 3,425 metres to test an estimated 0.5 trillion cubic feet gas resource with potential for 57 million barrels of oil in the Baong Sandstone and the deeper Belumai Formation primary targets.

The Seruway PSC is located within the offshore portion of the North Sumatra Basin, Indonesia and contains multiple existing gas and oil discoveries as well as undrilled prospects.

MEO has a 100% interest in Seruway.

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