It looks like Puka-3 has spud a week earlier than anticipated so...

It looks like Puka-3 has spud a week earlier than anticipated so MEO are not hanging around. At least they are drilling in a producing field this time so this gets away from the wildcat/tight scenarios we have endured in the past. This appraisal well should reach TD in a couple of weeks (no sub-sea tombstone territory here).



It appears that Puka 1 & 2 are producing from the edge of the field and Puka 3 will drill deeper to test the extent of the field towards Douglas. Phase 1 of the farmout is to test two intervals of the suspended Douglas well to confirm the OWC. Once Phase 1 is completed MEO will have earned a 30% interest in the producing field. If successful, Puka 3 can be brought online immediately so lets hope the estimated output of 500bpd is reached.

If MEO elects to go forward into Phase 2, MEO will increase its interest to 50% by funding $7.5m of a $9m capped programme. This phase will test the field with a further well, Puka 4, to confirm the extent of the field towards Douglas and construct a new well pad in a central location. Should the Seismic calibration be confirmed horizontal drilling may also be employed to improve production rates.

Source: farmout document

While we are waiting for news about a gas feed for TSMP and the obvious difficulty procuring farmout partners, some early income from the NZ venture may be the tonic LT MEO holders need as a reward for their loyalty. A loyalty which has been severely tested over the years in more ways than one.

#:>))