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MEO Australia Observes Gas At Sumatra Well

MEO Australia (ASX: MEO) has encountered gas shows while drilling through the first primary objective at its Gurame SE-1XST appraisal well off northern Sumatra.

"We are highly encouraged by the gas observed in the first of the primary objectives," managing director J├╝rgen Hendrich said.

The gas shows were encountered throughout the target Baong Sands and wireline logs are being acquired.

Once this is completed, 7 inch liner will be set prior to increasing mud weight and drilling ahead to the lower targets.

Gurame SE-1X well was selected as the lowest risk drill-ready candidate for early development.

It will be drilled to a total depth of 3,425 metres to test an estimated 0.5 trillion cubic feet gas resource with potential for 57 million barrels of oil in the Baong Sandstone and the deeper Belumai Formation primary targets.

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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