re: Ann: Quarterly Activities Summary for Per... MEO in its...

re: Ann: Quarterly Activities Summary for Per... MEO in its Quarterly Activities Statement released yesterday stated that HS-1 had reached its primary objective (the Elang/Plover reservoir) and was being cored (as Dr Daz pointed out to me). That the main objective had been reached was additional information to the HS-1 drilling report released on Monday that merely mentioned that "reservoir quality sands" had been penetrated with no mention of the formation.

Importantly MEO's statement that the Elang/Plover had been reached came with no qualification. I take from this that the formation pick has been verified with palynology as there are other non-reservoir "tight" sands present at the base of the Flamingo sequence (I have seen them called the Frigate sands) which could be confused with the Elang/Plover. Lithology samples and even logs are not always definitive.

This is very good news because it means that the Elang/Plover reservoir probably came in at 4059m which means that there could be at least 206m of reservoir to the gas water contact.