MEO Australia - Project Northwest Shelf

Exploration Permits WA-359-P, WA-360-P AND WA-361-P

In October 2007, the Company has secured a 60% participating interest in three Northwest Shelf exploration permits via a seismic acquisition option. MEO has agreed to meet the modest seismic acquisition obligations in these permits and assume the role as Operator. In these permits where MEO agrees to fund 90% of the costs of a single well, the 60% interest will have been earned. If MEO funds 100% of the well cost in each permit, a 70% participating interest would be earned.

Permits WA-359-P, WA-360-P AND WA-361-P

MEO has carefully reviewed the existing 2D and 3D data, which covers most of the permit areas. The most significant potential lies in WA-361-P, immediately northeast of the Perseus Gas Field and on the northern flank of the Goodwyn Gasfield where a thick sequence of interpreted Legendre shoreface and shallow marine sandstones is present in the Keast Graben. A potential stratigraphic trap, Zeus, has been identified, which is a similar play and analogous to the Perseus Gas Field (12 Tcf) and the new Woodside Persephone-1 discovery on the eastern flank of the North Rankin Gasfield.

Map of Top Triassic showing Zeus and nearby Rankin trend gasfields

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Zeus is a Legendre shoreface/shallow marine sandstone play within the fault bounded NNE-trending Keast Graben. The Legendre Formation thickens into the graben controlled by growth of basin margin syn-depositional faults, thinning onto northern and southern high blocks. Generation and migration modelling from Triassic source rocks in the Keast Graben underlying Zeus has confirmed the petroleum charge mechanism. Zeus has multi-TCF potential of 5 to 15 Tcf GIIP over 350 sq km of closure and up to 100 m of net pay.

Seismic amplitude response of interpreted Legendre gas sands across the Perseus Gasfield

The most positive indications are the Company�s observations on the existing 3D seismic data of possible development of amplitude-related hydrocarbon indicators (bright spots) that are similar to amplitudes observed in the similar reservoir gas sands at Perseus.

Seismic line across Zeus showing bright amplitudes in Legendre Formation

MEO has contracted the PGS Australia vessel, M/V Orient Explorer to acquire approximately 250 sq km of 3D seismic data and 250 line km of 2D seismic data to satisfy the seismic acquisition obligations of the permits. Acquisition is scheduled to commence in December 2007.

The new seismic data and selected re-processing of the existing 3D dataset (approximately 600 sq km) is expected to further delineate the Zeus prospect and a number of other leads in these exciting permits. Permits where MEO agrees to fund the well costs would be drilled in 2009. MEO has identified a number of commercialization paths, including utilization of nearby under-utilized production facilities and/or third party gas supply to new or proposed Northwest Shelf LNG developments requiring additional gas supplies.

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