News: MEC Resources: Update on PEP11 and Half Yea, page-33

re: News: MEC Resources: Update on PEP11 and ... Thanks Bruce you are correct and got a better feel for MMR strategy for 2011 after phone conversation with MMR management this evening:

o The BUY announcement of next PEP11 drill in 2013 is not at this stage endorsed by MMR. A timeline has not yet been determined and is dependent upon ongoing review of the last drill. Perhaps shakamoo is on the right track with his reasoning of why BUY mentioned the 2013 timing.

o MMR believe the drill will likely occur before 2013 but are unable to formally advise a timeline until they complete their review of the NSC-1 drill with regard to their other PEP11 target zones and will provide more guidance in due course. This from their 11th February update:

"Further evaluation work continues to be carried out on all aspects of the data obtained from the drilling of New Seaclem-1. It is anticipated that further developments will be achieved upon integration of new data with pre-existing data. Advent has demonstrated considerable gas generation and migration elsewhere within PEP11, with the previously observed numerous other mapped prospects and leads remaining highly prospective for gas.

Advent and its joint venture partner Bounty Oil & Gas (ASX: BUY) are discussing the future exploration program in PEP11 with the excellent foundation of information obtained from New Seaclem-1. The Joint Venture is well positioned for future drilling having completed pre-drilling site surveys over four locations in June 2010. These are likely to be enhanced by 3D seismic acquisition prior to further exploration drilling. Details of future works will be advised in due course, together with more detailed reports on post drilling data integration as it becomes available."

o Their goal is to maximise the chances of success from the next PEP11 campaign which is understandable, given the high costs involved with offshore drilling. For example they will have to determine what level of seismic testing they pursue and arrange that before proceeding to the drill stage.

o In the meantime, they intend to pursue the perceived less risky Bonaparte field permits, believing they have a good chance of adding shareholder value with activity there and possibly provide nearer term revenue for the company.

The following was also provided in the last update of 11th February:

"EP386 and RL1, Onshore Bonaparte Basin (Advent 100%)

Advent has formally requested renewal of EP386 in the eastern Kimberley region of northern Western Australia. Advent is preparing for exploration drilling and potential production tests on existing oil/gas discoveries in EP386 and RL1 (adjacent to EP386 in the Northern Territory) such as Waggon Creek-1, Vienta-1 and Weaber-4.

Included in the preparation for exploration drilling is the receipt of tenders to provide a drilling rig, with work to potentially start as soon as the 2nd quarter of 2011. Updated prospect and drilling details will be provided in the near future."

This is from their 2010 Annual Report:

"Northern Territory/Western Australia Bonaparte Basin

Advent Energy holds EP 386 and RL 1 in the onshore Bonaparte Basin in Northern Australia. The Bonaparte Basin is a hydrocarbon bearing sedimentary basin straddling the border between the Northern Territory (NT) and Western Australia (WA). Most of the basin is located offshore, covering 250,000 square kilometres, compared to just over 20,000 square kilometres onshore.

Advent Energy holds 100% of Exploration Permit EP 386 (4,760 square kilometres in area) which covers the entire Western Australian section of the onshore Bonaparte Basin. Since 1960 twelve wells have been drilled in or near EP 386 and only sixteen in the whole of the onshore basin. Although no commercial fields have yet been discovered, six exploration wells are classified as gas discoveries.

The tenements contain five sub- commercial gas fields which could be advanced to commercial status with additional work, in particular the Garimala Gas Field which may have an areal extent of more than 10km2 and could trap more than 25 Bcf OGIP. The main exploration target has been sandstone within a late Devonian - early Carboniferous sequence.

This thick marine shale dominated sequence is interpreted to be the main source rock sequence for the greater Bonaparte Basin, including the offshore portion where gas resources have been identified.

Three modest gas discoveries have been made along the western edge of the basin, in an area characterised by a structural-stratigraphic trapping and active migration known as the Waggon Creek Embayment. In EP 386 the three main discoveries made so far, Vienta, Waggon Creek and Bonaparte, contain possible recoverable gas resources of 8 Bcf, 12 Bcf and 4 Bcf, respectively.

In the NT, Advent holds 100% of Retention Lease RL-1 (166 square kilometres in area), which covers the Weaber Gas Field and two related prospects, Weaber North and Weaber Southwest.

The Weaber Gas Field was discovered in 1985 but has not been brought into production. Geoscience Australia has estimated that the Weaber field contains 4.3 million barrels of oil equivalent.

Upon investigation of well completion reports and drill stem testing data from the EP386 and RL1 wells, independent consultants Tanvinh Resources has advised that there is strong evidence from the pressure data that there is considerable upside potential in the area if formation damage can be avoided. Advent is highly encouraged by this review that suggests commercial flow rates could be achieved from the existing gas accumulations and that stratigraphic traps are present associated with the existing discoveries which could provide additional upside potential to the hydrocarbon resources/reserves previously identified within EP386 and RL1.

As a result of this review, Advent has initiated a multi-phased study to address methods of minimising formation damage and significantly improve gas flow rates. Advent is highly encouraged by this new review that enhances the near-term development potential of this excellent hydrocarbon asset."

As an aside, discussion turned to recent defamatory statements made on this thread and clearly MMR management are disturbed. Without going into detail, suggest posters seriously need to consider this aspect as has been warned by HC moderators. Anonymity should not be flaunted lightly and is not guaranteed, DYOR.

Overall, came away somewhat heartened that MMR have a clear strategy to carefully proceed with PEP11 while seeing what they can derive from their Bonaparte acreage.

Will continue to hold as willing to give them the opportunity to finish their review of NSC-1 and update on PEP11 as well as the activities planned for the Bonaparte permits in Q2.

Best of luck all Peppies