good news on the way

MEO has opened its NT/P68 data room for prospective farminees to undertake a technical evaluation of the Heron gas discovery with a view to co-funding appraisal drilling. Several parties have reviewed the opportunity and advised they would be submitting farm-in offers during the first quarter of 2011. The NT/P68 Permit is located in the Bonaparte Basin in the Timor Sea. The permit contains two gas discoveries - Heron and Blackwood.

Heron-2 intersected >200m gross gas column in the Plover sands of the Heron North structure. Current technical assessment of Heron suggests the potential for a multi-Tcf wet gas accumulation which may be suitable for LNG feed. Blackwood-1 intersected a 49m gross gas column in Plover sands which, with CO2 content of more than 25%, has potential for conversion to methanol. MEO is operator and holds 100% equity in the permit through its wholly owned subsidiary TSP Arafura Petroleum Pty Ltd. One of MEO's priorities for the quarter ending 31st March 2011 is to finalise negotiations for farm-in terms relating to NT/P68.