preparing to test tomorrow

HERON-2 WELL WEEKLY DRILLING REPORT – No 13
Key Points:
• Preparing to commence Epenarra production test
MELBOURNE, AUSTRALIA (January 18, 2007) -- MEO Australia Limited (ASX: MEO)submits this drilling report for the period ending 1000 hours, January 18, 2007. The Heron-2
well was spudded at 2230 hours (ACST) on October 12, 2007 in Exploration Permit, NT/P68.
The rig is preparing to commence the Epenarra Darwin formation production test. The 9⅝ inch production packer seal assembly has been set at 3075m just above facies C and the rig is currently making up the TCP (casing perforating) guns and running into the well with the test
string. It is expected that the 9⅝ inch casing will be perforated tomorrow morning and production testing of the facies C gas charged zones of the Epenarra structure will be undertaken.
Heron-2 is being drilled by Seadrill’s West Atlas jack-up rig contracted to MEO for two firm wells. 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.