'Heron-3 is expected to be drilled in 2Q 2012, subject to securing a suitable drilling rig.'
It would appear that a rig is not available this year and Eni have decided to wait out the cyclone season so will not drill H#3 until at least April 2012, eight months away.
Apart from the expected drilling of H#3, the document does not provide any new information but does give a clearer timeline for a number of projects as noted in the document:
AC/P50,51 and 53 - new seismic data to be acquired in 2011/12
A renewal application for WA-360-P will be lodged in late 2011 - it will be interesting to see who will participate in the renewal.
Seruway PSC - MEO has committed to acquire a 700km2 3D seismic survey and drill one exploration well in the PSC before the end of 2012.
From the article posted by Mark (the tanker captain) it appears the 3D seismic data may occur this year. This would fit in with MEO's usual business plan to de-risk the venture by performing the groundwork before presenting a complete picture of the permit to potential farmin partners.
MEO re-iterates that development of the TS projects 'is contingent upon securing suitable feed gas supplies.' and goes on to say that appraisal of MEO's gas discoveries in NT/P68 is planned through the Eni farmout.
We can still only speculate about potential 3rd party gas in the area and the logical TS solution.
Eni is also mentioned as being the operator of the Blacktip gas field, which is adjacent to MEO's 100% owned WA-454-P permit. There is also talk about a potential FLNG project for the adjacent Petrel, Tern and Frigate gas fields.
A long term partnership with Eni is quite plausible IMO.
More information about the mentioned '2007 Marina-1 gas and condensate discovery' can be found:
New Ventures are again listed but, again, we can only speculate as to what they may be.
The company has brought together an impressive list of well credentialed personnel. I hope they are able to realise their potential through MEO's business plan.
Overall it is disappointing to MEOmites that the drilling of H#3 will not be until 2Q 2012 at the earliest. This means there will be two wells next year, H#3 in NT/P68 and somewhere in the Seruway PSC, probably Gurame, unless an interesting target is uncovered through the seismic survey.
So, my LT Buy sentiment will remain on this stock, which is safely tucked away in the bottom shelf of my portfolio. I will continue to increase my holding, when possible, especially at present day values.
But this is my decision, which could be totally wrong.
As I have always said, we need to be patient for developments to occur. I don't think there will be much movement in the SP until we know the exact timing of the H#3 drilling.
Of course there could be some ground breaking developments in other tantalising possibilities, such as blurrts MEO/AED/Eni theory (which also includes the future of South Madura PSC) or some change in the development of Bonaparte's stranded gas.
But this is only speculation of a high risk stock so please DYOR.
#:>))
MEO Price at posting:
15.0¢ Sentiment: LT Buy Disclosure: Held
