MEO 0.00% 0.0¢ meo australia limited

yesterdays ann. said traces of gas bearing, page-12

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    S, that's a reasonable question. Because the Zeus feature is not a normal structural trap they wouldn't have necessarily drilled into the crest of the accumulation. In a roughly symmetrical stratigraphic feature (Zeus) the reservoir is likely to thickest at the centre and thin out towards the edges. However, the centre is also likely to be at a greater depth than the edges, so there could well be updip potential. If they find even a thin gas accumulation at the top of the two reservoir sands it will be great news. Why, because the gas column would steadily thicken as you moved out towards the edge, which is 'up-hill' in simple terms (updip). Jurgen has confirmed that there is an updip part to the feature, we haven't been told how far updip (that is, metres shallower) Zeus extends, and whether it is in both edges, east & west.

    They probably drilled into the centre to test for the thickness and quality of the reservoir sands; these seem to have exceeded expectations which is good.

    If they had tried to hit at the edge (highest point) they would have risked the reservoir sands having pinched out, so the result would have been inconclusive (and the well a total loss).

    A lot now hinges on the testing of fluid content/pressure, but even a negative result here would not really prove the Z. feature contained NO gas. Of course, the market won't see it this way!
 
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