(MENAFN - ProactiveInvestors - Australia) MEO Australia (ASX: MEO) is approaching the first zone of interest at its Sainampueng-1 oil exploration well in the Gulf of Thailand.
Operator Pearl Oil started drilling the well on 23 November from the existing casing shoe used for the Anchan-1 well. Sainampueng-1 has since reached a depth of 2,237 metres.
"Sainampueng-1 is approaching the first zone of an extensive interval of interest," managing director Jrgen Hendrich said.
Sainampueng-1 was selected from 23 prospects and leads with total mean resource potential of more than 100MMbbl of oil.
These had been identified by a detailed interpretation of a 450 square kilometre 3D seismic survey targeting the southern Rayong Graben in late 2011 and cover multiple play types at a number of target levels.
Sainampueng-1 will also satisfy the Year 6 commitment for the Block G2/48.
MEO had acquired a 50% stake in the block on 27 February 2012.
G2/48 contains the Rayong Basin and has only had two wells drilled in it, both having exhibited hydrocarbon shows.
Pearl is a veteran Gulf of Thailand producer, operating the Jasmine oil field to the south that has produced over 40 million barrels (MMbbl) of oil since production started in June 2005 and the 31MMbbl barrel Manora oil development to the west.