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MEO Australia To Release Heron South-1 Production Test Results Soon

MEO Australia (ASX: MEO) will soon update the market on results from production testing the lower zone of interest at its Heron South-1 exploration well in the Timor Sea offshore Northern Territory.

Shares in the company have been placed into a trading halt until the announcement is released.

Operator Eni Australia had earlier this week completed installation of liner and was last reported to be preparing to production test the lower 115 metre gas-bearing zone.

Once testing of this zone is completed, the upper 120 metre gas-bearing zone will be tested.

Heron South-1 was drilled to determine the extent and productivity of the Elang-Plover reservoir as well as the composition of any gas discovered as the first of two wells that Eni is drilling to earn its 50% stake in NT/P68.

Eni has 60 days after Heron South-1 is completed to elect on drilling a second Heron well that will further delineate the Heron field and provide more confidence about its reserves.

The Greater Heron structure is estimated to hold prospective recoverable raw gas of 5 trillion cubic feet, potentially sufficient to underpin a liquefied natural gas development.

The Italian major also has an option to earn a 50% interest in the Blackwood area by committing to drilling a well by 5 January 2013, having previously completed the requirement to acquire at least 500 square kilometres of 3D seismic.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 27th November 2012.

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