Blackwood-1 declared commercial

MEO Australia Ltd. has made a discovery with Blackwood-1 off Australia's northwest coast.

Offshore staff

MELBOURNE, Australia -- MEO Australia Ltd. has made a discovery with Blackwood-1 off Australia's northwest coast.

Seadrill's jackupWest Atlas has completed a series of logging runs, including the recovery of hydrocarbons to surface by modular dynamics testing (MDT) downhole sampling. Additionally, a number of core samples through the column have been obtained.

The gas, core samples, and log data are currently being analyzed by specialist petrophysical contractors. Initial gas analysis conducted on the rig has confirmed that the gas is relatively dry and contains CO2 levels in the 25% to 30% range (very similar to Evans Shoal gas), which is suitable for methanol production, according to MEO.

Given the recovery of hydrocarbons to surface and strong electric log evidence of a hydrocarbon column in the Plover sandstone formation of the Blackwood structure, formal declaration of a discovery pursuant to clause 34 of the Petroleum (Submerged Lands) Act 1967 has been made to the Designated Authority.

The MEO-operated Blackwood-1 well has been plugged and abandoned as planned. The discovery well is being 100% funded as a sole risk, exclusive operation by MEO.

03/11/2008

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