Hi MEOmitesSome time ago it was asked why WA-361-P was broken up...

Hi MEOmites

Some time ago it was asked why WA-361-P was broken up as it was when it was renewed last year.

Some questions have also been asked about other wells in 360-P so I have taken the liberty of reproducing the MEO map of the two permits * (ref. P3 Carnarvon Exploration Permits) *, with some modifications, so we can have a look at what is going on.



It all looks a bit busy so to clarify:

The three green boxes are the original blocks MEO farmed into being WA-359-P, WA-360-P and WA-361-P.

We can forget about WA-359-P as that was released back to Gascorp/ CUE in Jan 2010 when MEO decided not to take the drill option.

On WA-361-P seven blocks had to be relinquished as part of the five year renewal * (ref. ASX release Jan 2011) *,

I have outlined the remaining eight blocks in blue on the permit map. If we look at these blocks we can see why they have been chosen because of the various leads they cover. These are Hephaestus, Heracles, a portion of Zeus and West Zeus.

I believe the most important of these is West Zeus but I will touch on that later.

After MEO bought Gascorp's 15% share of 361-P the permit partners are now:

MEO - 50%
Mineralogy Pty Ltd (Live Palmer) - 35%
CUE - 15%

MEO's increase to 50% gives us better leverage for future farm-in deals.

Now for WA-360-P. The share in this permit is presently:

Petrobras - 50%
MEO - 25%
CUE - 15%
MOG - 10%

The shape of Artemis on the original map has changed somewhat so I have superimposed the latest shape of the perceived (dry) reservoir with an orange lens.

The dry wells on this permit are Malmesy-1 (just outside and south of the permit but adjacent to the Eris lead), Malus-1, Eastbrook-1 and of course Artemis-1.

Out of these MEO believes that Eastbrook-1 showed a '20% gas saturation in thin North Rankin beds'( ref. 18 Nov 2009 Artemis overview).

The targeted zones on A#1 were dry but we are still wondering about the pressure they encountered in the Withnell zone. Withnell has caused problems in other areas of the NW but hasn't produced any quantities of HCs.

Lady Nora - Extn has been listed by MEO as a prospect * (P5. Mar 2009 ASX Small-Mid cap conf) *.

(As a side - on page 11 of that document we can see the estimated size of Blackwood East on NT/P68).

Other leads in the permit are West Zeus, Eris, Hebe, Amphion, Echo/Yodel Extn, Ersa and Pandia.

These can be seen in the following graphic from the P15 of the same document.



I won't reproduce the info about Malmesy-1 and Malus-1 here but they are referenced in * this document here *.

It is noted that Malus 1 was drilled to a TD of 3658m compared to the A#1 TD of 3275m. In comparison Wheatstone was drilled to a TD of 3550m. In the above diagram, even though it is not listed as a lead, reference is given to an area 'updip of Malus/Malmesy'. This is away from the Eris lead so it would be another area of interest.

Regarding my earlier reference to West Zeus. Artemis was believed to be updip to Eastbrook 1. I referenced this * in post 5976983 here *. Since then A#1 came up dry but West Zeus and the Amphion lead are also in close proximity to Eastbrook 1.

West Zeus appears to straddle both permits so if there is indeed gas in the area unitisation could be on the cards. In that scenarion the permit partners out of sync are Clive Palmer, MOG and PBR so a number of permutations could happen.

I think there is enough interest in the area to think about. I will leave it for MEOmites to muse.

I am sure both MEO and PBR G&Gs are doing the same with the assistance of their wealth of data.

IMHO.

#:>))