(MENAFN - ProactiveInvestors - Australia) MEO Australia (ASX: MEO) and Eni have recorded gas shows and elevated resistivity readings while drilling the Heron South-1 well towards the gas water contact in the target Elang Plover objective.
The significance of these shows will be evaluated with a comprehensive formation evaluation program that will be carried out after drilling at Heron South-1 is completed.
MEO added that palynology analysis of core chip samples of a section where gas shows were encountered in reservoir quality sands appeared to be sandstone above the main Elang-Plover objective.
Heron South-1 is being drilled to determine the extent and productivity of the Elang-Plover reservoir and the gas composition.
Eni is earning an initial 50% interest in the Heron area by funding two wells on the structure. It also has an option to earn a 50% interest in the Blackwood area by acquiring a minimum 500 square kilometre 3D seismic survey and drilling a well in the area.
The Italian major has a further option to acquire an additional 25% interest in both areas of the permit by funding MEO's share of the work program, including additional appraisal wells, required to reach a Final Investment Decision (FID) for either Heron and/or Blackwood.
MEO has estimated the Greater Heron structure could hold mean prospective recoverable raw gas of 5 trillion cubic feet, potentially sufficient to underpin a liquefied natural gas development.