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MEO Australia Targets Commercial Flows With Indonesian Gas Appraisal Well

MEO Australia (ASX: MEO) has spudded an appraisal well designed to maximise the chance of achieving commercial flows at its Gurame oil and gas field off northern Sumatra yesterday.

The Gurame SE-1X well was selected as the lowest risk drill-ready candidate with the highest probability of advancing the Best Estimate Prospective Recoverable Resource of 497 billion cubic feet of gas and 57 million barrels of oil towards commercial development.

Drilling is being carried out by the Hercules 208 jack-up drilling rig and has reached a depth of 202 metres.

"The safe arrival of the rig at the Gurame SE-1X location and spudding the well are significant milestones," managing director Jürgen Hendrich said.

"Gurame is a significant discovered resource with the potential to move rapidly into commercial development pending a successful outcome in this well."

Gurame SE-1X will test the main Baong and Belumai reservoirs within a structural closure that is substantially higher than where oil samples were recovered in previous wells, which had delineated the Gurame field in the Seruway Production Sharing Contract.

MEO expects the target reservoirs at this location to be naturally fractured and gas bearing, a combination which should enhance the potential to achieve a commercial flow rate.

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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