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MEO Australia Limited (ASX:MEO) Seruway PSC - Gurame SE-1XST Progress Report No. 13

Melbourne, Australia, Dec 6, 2012 - (ABN Newswire) - MEO Australia Limited (ASX:MEO.AX - News) (OTCQX:MEOAY - News) provides the following update in relation to Gurame SE-1XST being drilled in the Seruway PSC, offshore North Sumatra, in which MEO holds a 100% interest.

Since the last report wireline logging operations have been completed. The significant difficulties in stabilizing mud losses encountered at 3,145mMDRT and the consequent risks to well integrity precluded drilling further.

The well has been plugged back 35m into the liner to 2,926mMDRT and preparations are underway to production test the Baong sands.

Progress Summary

Progress since last report:
- Completed wireline logging operations
- Plugged back well into liner at 2,926mMDRT

Present Operation (at 0200 hrs Jakarta time, 6th December)
- Preparing to production test Baong sands

- Complete production test of Baong sands
- Plug and abandon well

MEO's CEO and MD Jürgen Hendrich commented on the announcement:

"The significant mudlosses experienced, coupled with good gas shows is evidence the Belumai sands are fractured and have the potential to be productive. Regretably, these fractures also bring drilling challenges. Gas shows encountered while drilling indicated no evidence of H2S or CO2, suggesting good gas quality. The upcoming production test will determine Baong reservoir productivity and gas composition."

About MEO Australia Limited:

MEO Australia Ltd (ASX:MEO.AX - News) (OTCQX:MEOAY - News) is an ASX listed, independent oil and gas company focused on building a substantial Australian and international E&P business servicing the rapidly growing Asian energy markets.

The Company has assembled a portfolio of exploration, appraisal and development stage opportunities on the NW Shelf, the Ashmore Cartier and the Timor Sea regions in Australia, offshore North Sumatra, and on Madura Island, East Java in Indonesia and the Gulf of Thailand.

MEO has also attracted a high calibre Board of Directors and proven Executive, Technical and Commercial talent with a demonstrated track record of attracting and partnering with globally recognised industry participants.

MEO Australia is listed on the Australian Stock Exchange (ASX: MEO, OTC: MEOAY) and is headquartered in Melbourne, Australia.


MEO Australia Limited T: +61-3-8625-6000 F: +61-3-9614-0660 E: WWW:


MEO Australia Limited

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