To Oilman01,Unfortunately MEO will not be testing any of the oil...

To Oilman01,

Unfortunately MEO will not be testing any of the oil zones at their Gurame 1 well, only the gas zones. I still find it astonishing that they wouldn't test the oil zones and have noted my concern on previous posts and have been decried for doing so.

Apparently I am not the only one who has queried this decision - this was also noted in an article in the Australian by Barry Fitzerald on September 05, 2012 with an explanation that followed the company line (which I didn't think made sense).

The only explanation I can think of is that it is something that a major might do (most of the MEO people have migrated from majors such as ExxonMobil and Shell). But this is not something a small company can afford to do, especially when it has not farmed it out and is drilling it with its own money. If this was pushed by the technos, then management should have pushed back. Frankly, I am at a loss with MEO's strategy. The money initially is in the oil, not in the gas.

In a similar case as this in Indonesia at Oorong where Santos and Cue Energy successfully explored and developed the relatively thin oil leg beneath the gas and now with that depleted, has now successfully developed the gas.

Analyst66

Anything like we will start flow test we will se sp close to 30c. 20MMscfd flow would bring it to 40c. Every 1MMbbl oil in Indonesia would add about $20 million to the market cap. It is a rough number but all I hope for is 50c by Xmas.