Xtract Energy says MEO undertaking prolonged clean-up at Heron-2 well
LONDON (Thomson Financial) - Xtract Energy PLC said MEO Australia Ltd, in which it holds a 15.7 pct stake, has advised the market that while the Heron-2 well has commenced flowing gas, it is currently undergoing a prolonged clean-up period to clear drilling fluids from the wellbore and formation.
MEO added the well was shut-in as a cyclone came within 500km of the rig, necessitating mandatory securing of the rig.
The company said the rig will recommence operations and proceed with production testing of Heron North when the cyclone weakens to a 'tropical low', as forecast and that as a result of these uncertainties, it has entered into a trading halt.
Xtract Energy is 50.3 pct-owned by Cambrian Mining PLC.
