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MEO Australia Set To Spud Gulf Of Thailand Oil Well

MEO Australia (ASX: MEO) and Pearl Oil are preparing to spud their Sainampueng-1 targeting up to 25 million barrels of oil in the Gulf of Thailand.

This comes after Pearl, an affiliate of Mubadala Petroleum, completed drilling its Anchan-1 commitment well that did not encounter any significant hydrocarbons.

"We are pleased Anchan-1 was drilled without incident and now keenly anticipate the commencement of Sainampueng-1 drilling," MEO managing director Jürgen Hendrich.

Sainampueng-1 was selected from 23 prospects and leads with total mean resource potential of more than 100MMbbl of oil.

These had been identified by a detailed interpretation of a 450 square kilometre 3D seismic survey targeting the southern Rayong Graben in late 2011 and cover multiple play types at a number of target levels.

Sainampueng-1 will also satisfy the Year 6 commitment for the Block G2/48.

MEO had acquired a 50% stake in the block on 27 February 2012.

G2/48 contains the Rayong Basin and has only had two wells drilled in it, both having exhibited hydrocarbon shows.

Anchan-1 was drilled at sole cost by Pearl as a shallow test of a basement play on the high side of a fault that could be drilled from the same location as Sainampueng-1.

It fulfils the year 5 commitment from before MEO's entry into G2/48 and does not impact on the prospectivity of the Sainampueng-1 target.

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