heron 2 well weekly drilling report

Still 300 mtrs to go till TD
Angers

HERON-2 WELL WEEKLY DRILLING REPORT – No 10
Key Points:
• Current depth: 4016m
• Drilling 6 inch hole to TD
MELBOURNE, AUSTRALIA (December 20, 2007) -- MEO Australia Limited (ASX: MEO)submits this drilling report for the period ending 1200 hours, December 20, 2007. The Heron-2 well was spudded at 2230 hours (ACST) on October 12, 2007 in Exploration Permit,NT/P68.
The rig completed logging from 3983m to the 9â…� inch casing shoe and set a 7 inch liner to
isolate the over-pressured Flamingo Formation. Heron-2 well has drilled to a depth of 4016m
and is in the upper Plover target reservoir. The prognosed total depth of Heron-2 is 4300m,
which is just below the mapped structural spill point at 4260m. 4260m is also the depth of the
flat event noted on the 3D seismic data, and interpreted as a possible gas-water-contact.

The participants in the well are:
TSP Arafura Petroleum Pty Ltd (MEO subsidiary) 45% Oz-Exoil Pty Ltd (MEO subsidiary) 45%
Petrofac Energy Developments Oceania Ltd (Petrofac Limited subsidiary) 10%

Heron-2 is being drilled by Seadrill’s West Atlas jack-up rig contracted to MEO for two firm
wells and one option well. The Heron-2 well is designed as a vertical well to penetrate and
production test the Epenarra Darwin Formation and the deeper Elang/Plover Formation of the
Heron North structure.

The Heron-1 well drilled by ARCO in 1972 intersected a 52m gas bearing column in the
Darwin Formation (a fractured carbonate reservoir) within the 1,200 square km mapped
closure of the large Epenarra structure. Heron-1 also reached a gas charged zone in the deeper underlying Elang/Plover horizon, which is a secondary objective for the Heron-2 well.