Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • MEO Australia Partner Eni Australia To Drill Blackwood Appraisal Well 0 comments
    Feb 3, 2013 6:57 PM

    MEO Australia (ASX: MEO) has extended its alliance with Eni Australia with the Italian major exercising its option to drill an appraisal well in the Blackwood area of NT/P68 in the Timor Sea offshore Northern Territory.

    The well will evaluate the 2008 Blackwood gas discovery that intersected a 48 metre gross gas column.

    "The election by Eni to commit to evaluating the Blackwood gas discovery is a key milestone in the context of the Farm-in Agreement and the potential for the Blackwood resource to underpin a commercial development," MEO managing director Jürgen Hendrich said.

    Blackwood-1 flowed dry gas with 25-30% carbon dioxide, similar to the composition at Evans Shoal that Eni holds a 32.5% stake in.

    Blackwood farm-in

    Eni will earn a 50% interest in the Blackwood area by fully funding the drilling the Blackwood-2 well including production testing.

    It has 18 months from the date of election to drill the well.

    Eni can increase its interest by a further 25% by funding MEO's share of the work program required to reach a Final Investment Decision on Blackwood.

    Blackwood-1 ST1 was drilled to a total depth of 3,286 metres and encountered the gas column in the Plover Formation down to a preliminary gas-water contact at 3,188 metres subsea.

    Regional prospectivity

    Blackwood is close to the Shell-operated Evans Shoal gas discovery, which is estimated to hold 6.6 trillion cubic feet of gas, and the Heron gas field in NT/P68.

    It has the potential to be considered together with any discoveries at Heron and Blackwood for a joint development.

    Other wells in the vicinity include the giant Greater Sunrise field, the Barossa and Caldita fields that could either fuel an expansion of the Darwin LNG plant or a standalone floating LNG facility, as well as the Abadi field in Indonesia that will be developed through a FLNG vessel.


    While a drilling schedule has yet to be established, Eni's decision to drill an appraisal of the Blackwood gas discovery is a testament to the potential that the Italian major sees in the area.

    The Eni decision will be welcomed by investors, we expect the news to give MEO a boost this morning and its not unrealistic to expect that the announcement of a drilling date and well spud may act as further catalysts as would a successful well result.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.