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MEO Australia, Eni Poised To Start Production Testing At Heron South-1

MEO Australia (ASX: MEO) has advised that operator Eni Australia is now preparing to install the slotted liner before starting production testing at the Heron South-1 well in the Timor Sea offshore Northern Territory.

"Eni continues to work diligently towards production testing the two zones of interest. Successful cementing of the 7" liner over the upper zone now paves the way for the 4½" slotted liner to be installed across the lower zone," managing director Jürgen Hendrich said.

The Italian major will clean out the wellbore prior to installing a 4½" slotted liner.

It will then carry out two separate production tests over the two zones of interest intersected by the well to determine reservoir productivity and gas composition.

Heron South-1 will then be plugged and abandoned.

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.

Eni 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.

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