eni farms in to heron, page-3

You are on the ball, blurrt:)

The binding agreement must have been signed and MEO will no doubt release more details in an ASX release before open but, until then, the Eni press release can be found:

* On their website here *

It reads:

'San Donato Milanese (Mi), 17 May 2011 - Eni has signed an agreement with MEO Australia Limited to farm-in to the Heron and Blackwood gas discoveries in the permit NT/P68 in the Timor Sea, northern Australia.

The agreement involves Eni earning 50% in the Heron gas discovery by funding the drilling of two wells in the Heron Area. Eni may withdraw from the agreement after the first well has been drilled.

Eni has a further option to earn 50% in the Blackwood gas discovery by acquiring a minimum of 500 square km of 3D seismic and drilling one well in the Blackwood area.

Eni has a further option to acquire an additional 25% interest in the discoveries by funding the work programme required to reach a Final Investment Decision (FID) in either Heron or Blackwood or both. Once completed Eni would make a one off bonus payment to MEO.

Eni Australia Limited will be the Operator of the permit NT/P68 with a 50% share with its partner MEO Australia Limited.

This agreement represents a significant opportunity in line with Eni's strategy to increase its business presence in Australia, an OECD country, and the south-east Asian region generally, through organic and acquisitive growth of quick to market hydrocarbon discoveries.

Eni entered Australia in 2000 and is the Operator of the Woollybutt oil field (65% interest), the Blacktip Project (100% interest) and the Kitan Development Project (40% interest) and is a partner in the Bayu Undan gas and condensate field and Darwin LNG (10.99% interest). Eni has interests in 13 exploration permits and production licenses in Australia, Timor-Leste and the Joint Petroleum Development Area (JPDA), 10 of which it operates and covering a total area of about 50,000 square km.'

Note the emphasis on 'quick to market hydrocarbon discoveries'

The first appraisal well will, no doubt, be Heron 2B (at Heron North) to re-visit Epanarra (3108m - 3159m) and drill further down into the fractured Plover Sands, hopefully with a TD sub 3983m (and no collapse this time thank you). This will be to test the quality and quantity of HCs. Mudlogs from Heron 2 indicate the Plover gas to be wet and low in CO2 which would be suitable for LNG production.

For a more detailed technical description:

* See Ya's Post #: 5774087 here *

If successful Eni will then free carry MEO in a second well probably to appraise Heron South (Heron#3C) which was not completed in the program with Petrofac due to time restraints caused through the well-bore collapse and cyclone problems with Heron#2.

The Blackwood option is a surprise, but if the new partner is interested in participating in the innovative TSLNG/TSMP scenario then it will be a natural progression to proceed with the two projects in tandem.

The lynchpin is LNG quality gas at Heron North. I think it is about time we had some positive results.

Once more information is released there will be plenty to discuss and dont forget we will still have our >$95m funds intact with a free carry for at least one more appraisal well at Heron, a bonus payment etc. etc.

Good luck MEOmites.

#:>))