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  • MEO Australia: Eni Carries Out Further Studies Ahead Of Second Heron Well Decision 0 comments
    Mar 25, 2013 1:27 AM

    MEO Australia (ASX: MEO) has executed binding amendments to its farm-in agreement with Eni Australia, giving it more time to carry out further studies and make a decision on whether to drill a second Heron well.

    The Italian major now has until 18 December 2013 to decide on whether to drill the well.

    This gives more time for additional studies to be undertaken, the costs of which will be borne by Eni.

    Other amendments include splitting Eni's option to acquire an additional 25% interest in the permit by funding MEO's share of the work program required to reach a Final Investment Decision in either the Heron and/or Blackwood projects.

    Eni can now elect to take up the additional 25% independently in the Heron and Blackwood areas.

    "Heron South-1 intersected two significant gas bearing intervals but flowed gas to surface at rates too small to measure accurately," MEO managing director Jürgen Hendrich.

    "This time extension allows technical studies to be undertaken to better understand the causes of and distribution of reservoir productivity and determine whether sweet spots can be expected at Heron and where these have the highest probability of occurrence."

    MEO had in February granted Eni an extension to 1 March 2013 to decide on drilling the second well.

    Eni had also exercised 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.

    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.

    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.

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