MEO 0.00% 0.0¢ meo australia limited

1.8 trillion cubic feet gas

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    ANOTHER major gas project could be a boon to the Territory, with a $100million gas deposit found off the coast of Darwin.

    The find was part of the Tassie Shoals project, 360km northwest of Darwin.

    Gas explorer MEO Australia yesterday announced the Blackwood 1 well could have up to 1.8trillion cubic feet of gas _ almost three times what was originally estimated.

    The company spent $25million on the 3km-deep well, drilled by the West Atlas jack-up rig that was seen by

    Territorians when it visited Darwin Harbour in October.

    The find could lead to a possible spur line to the Baya Undan pipeline, which runs from the Timor Sea to Darwin.

    Last week, the Territory Government signed an agreement with Japanese company Inpex to put Darwin on ``equal footing'' with Western Australia for a $12billion gas deal.

    The agreement could lead to a second LNG plant that would be three times the size of Wickham Point.

    The gas supply from either deposit could kickstart the building of a $3billion Dow chemical plant in Darwin.

    The decision to bring the gas to Darwin through the pipeline would depend on the quality of the gas.

    The company's website indicated they would build an ``artificial island'' at sea for a methanol production and utilities plan if the gas was high in carbon dioxide.

    But a statement by MEO Australia said mud gas sampling indicated the gas would not be high in carbon dioxide _ giving hope to the Territory's gas industry.

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