MEO Australia (ASX: MEO) and operator Eni are just weeks from drilling the highly anticipated Heron South-1 well in the Timor Sea offshore Northern Territory that will appraise the Heron-2 gas discovery.
Eni, which is drilling the well to earn a 50 percent interest in the Heron area of NT/P68, expects the Ensco 109 jack-up drilling rig to arrive on location on or around 19 August after it takes over the rig on 15 August.
“We are delighted that Heron South-1 will soon commence drilling,” MEO managing director Jurgen Hendrich said.
“Since the Heron-2 well discovered gas in early 2008, MEO has been working towards appraisal of the discovery. We are very pleased to be partnering with Eni and look forward to a safe and successful drilling programme ”
Heron gas field
MEO discovered the Heron field in early 2008 with the Heron-2 well, which intersected more than 200 metres of gross gas pay in the Plover Sands in the Heron North structure and flowed gas to surface during a drill stem test.
However, drilling had to be halted prematurely due to operational difficulties.
No gas water contact was made and MEO suggested there was potential for the gas column to extend another 210 metres into the interpreted structural saddle that spills to Evans Shoal.
Eni has 60 days after Heron South-1 is drilled to commit to either drilling another well on the field or withdrawing from participation.
Separately, Eni has the option to earn a 50 percent stake in the Blackwood area of the permit by committing to drill a well on the 1 year anniversary of the completion of the 766 square kilometre Bathurst 3D survey, which was completed on 5 January 2012.
Blackwood was discovered by the Blackwood-1 exploration well in 2008, which intersected a 49 metre gross gas column.
Blackwood-1 flowed gas with 25-30 percent carbon dioxide, similar to the composition at Evans Shoal.
Heron and Blackwood have estimated total resources of about 6 to 6.5 trillion cubic feet of gas, similar to the 6.6Tcf at Evans Shoal.