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MEO Australia Limited (ASX:MEO) Seruway PSC - Gurame SE-1SXT Progress Report No. 12

Adelaide, Australia, Nov 28, 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.

Since the last report the 7" liner has been drilled out with a 6" bottom hole assembly from 2,961mMDRT to 3,145mMDRT. High background gas readings were noted from thin sands within the Lower Baong shale with no CO2 or H2S detected by surface equipment.

Circulation was lost at 3,145mMDRT which was interpreted to be due to natural fractures in the top of the Belumai sands. Mud losses have been contained and the well has been stabilized prior to commencing wireline logging operations.

Following completion of the logging operations, the forward program is to plug back to the 7" liner prior to production testing the Baong sands.

Progress Summary

Progress since last report:
- Drilled out of 7" liner in 6" hole to 3,145mMDRT

Present Operation (at 0200 hrs Jakarta time, 28th November)
- Pulling drill string out of hole at 1241mMD and preparing to commence wireline logging operations

- Complete logging operations and plug back to 7" liner shoe
- Production test Baong sands
- Plug and abandon well

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

"The detection of gas within the Lower Baong shale with no indications of CO2 or H2S indicates the shale as the likely hydrocarbon source for the adjacent Boang and Belumai sands. Evidence of natural fractures in the Belumai sands will enhance the potential of this interval to be a productive reservoir. We look forward to the upcoming production test of the upper zone."

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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