MEO Australia is an ASX listed company focused on developing material gas processing projects in provinces with established LNG infrastructure. View MEO Corporate Brochure (1MB)

Two of these gas projects are planned to be located on Tassie Shoal, in the Australian waters of the Timor Sea approximately 275km north of Darwin. The shoal is a strategically located area of shallow water surrounded by ~25 Tcf of undeveloped gas within a 150km radius. This gas is currently economically stranded by: i) the long distance to a shore based processing plant and/or ii) relatively dry gas with quality compromised by varying levels of CO2.

MEO has secured Commonwealth environmental approvals to install one 3 Mtpa LNG plant (Timor Sea LNG Project – TSLNGP) and two 1.75 Mtpa Methanol plants (Tassie Shoal Methanol Project – TSMP) on Tassie Shoal, effectively leveraging a natural shallow water feature to locate the processing facilities in close proximity to the resources. The manufacture of methanol from natural gas uniquely utilises and benefits from significant amounts of CO2 in the feed gas so design provision has been made for CO2 removed from the LNG feed gas stream to be used in the production of methanol rather than discharging it to the environment.

The ideal gas quality for methanol production using Steam Methane Reforming (SMR) is 22-25% CO2, thereby offering an economic CO2 sequestration solution for the marginal gas quality. The Evans Shoal gas discovery located within 7km of Tassie Shoal contains 26% CO2 making it ideal for conversion into methanol.  

MEO is currently focused on two distinct geographical areas:

Bonaparte Basin: Tassie Shoal Gas Processing Projects (MEO 50-100%); NT/P68 Exploration Permit (MEO 100%)

The focus of the Timor Sea LNG Project (MEO 100%) and the associated Tassie Shoal Methanol Project (MEO 50%) is to commercialise stranded gas accumulations in the Timor Sea. The TSLNGP is designed to convert low carbon dioxide (CO2) gas to LNG, while the TSMP will convert higher CO2 gas to methanol.

Development of the projects hinges on securing suitable feed gas. The Company has applied for renewal of its 100% owned, 12,000km2 NT/P68 Exploration Permit located immediately adjacent to Tassie Shoal. This permit contains two gas discoveries – Blackwood – potentially suitable for methanol production - and Heron, which may contain higher quality, liquids rich gas which may be suitable for LNG production. Both discoveries require further appraisal. A five year renewal term is being sought which will involve relinquishment of 50% of this large area.

Gas may also be sourced from undeveloped 3rd party fields located in the vicinity of Tassie Shoal. Both options are being worked in parallel.


Carnarvon Basin: Exploration Permits WA-360-P (70% prior to farm-out) and WA-361-P (35%)

MEO has an interest in two Carnarvon Basin Exploration Permits – WA-360-P and WA-361-P, located immediately outboard of the North West Shelf Gas Project which is supplying gas to the West Australian domestic gas market as well supplying 5 LNG processing trains which supply export markets with 16.3 Mtpa LNG.

Adjoining the western boundary of WA-360-P is the Wheatstone gas field which has commenced FEED (Front End Engineering and Design) to supply gas to a 5-10 Mtpa LNG project. To the South West of the Wheatstone gas field is the Pluto gas field which is under development to supply the stand-alone 4.3 Mtpa LNG train currently under construction. MEO has identified the Artemis prospect in WA-360-P which is estimated to contain 12 Tcf of mean prospective resources. Artemis is structurally controlled and exhibits seismic amplitudes that terminate at a common depth, an attribute typically associated with a hydrocarbon/water contact.

In early 2009, MEO drilled the Zeus-1 well in WA-361-P (MEO 35%) to test a large stratigraphic play. Unfortunately, the well did not result in a gas discovery, however it provided valuable insights into the quality and distribution of Jurassic aged reservoir sands that are the target in Artemis-1.

The Company has selected a preferred farminee to take up to a 50% interest in WA-360-P by way of farm-in and is close to finalising binding agreements. MEO expects to retain a minimum 20% interest in the permit post farm-out. Discussions have commenced with drilling rig Operators aimed at securing a rig to drill Artemis-1 in the second half of 2010.