heron 2 well update gas gas gas

HERON-2 WELL UPDATE
MELBOURNE, AUSTRALIA (10 am, November 27, 2007) -- MEO Australia Limited
(ASX: MEO) advises the market that the West Atlas rig has successfully completed the
running of three planned log suites from the section depth (3360m), through the Epenarra
Darwin Formation to the 13⅜ inch casing shoe.
The rig has also recovered 18 rotary side-wall core samples for detailed petrophysical
analysis. The cores samples were taken through the Darwin Formation and underlying source
rock, the Echuca Shoals Formation. The majority of samples targeted the Darwin Formation
facies C zone which was interpreted to be gas-bearing in Heron-1. Preliminary analysis of the
log suites acquired in Heron-2 also indicates Facies C to be gas bearing.
The joint venture partners are carefully reviewing the new data prior to making a firm
decision about flow testing this interpreted gas bearing zone. Until the hydrocarbons are
recovered and analysed, MEO is unable to confirm gas quality or that a recoverable resource
is present in Epenarra.
The rig is currently running the 9� inch casing to the 3360m section depth. An 8½ inch hole
will then be drilled to the Heron North Elang/Plover Formation.
Production testing of Epenarra can only be undertaken after the drilling (and if warranted flow
testing) of the underlying Heron North structure.