MEO Australia has received regulatory approval for the transfer of Gascorp Australia Pty Ltd. ’s 15% equity in exploration permit WA-361-P to MEO’s subsidiary company North West Shelf Exploration Pty Ltd. Following receipt of this approval, MEO has paid Gascorp US$1 million cash to settle the transaction and now has an unconditional 50% participating interest in the permit. WA-361-P lies immediately adjacent to the MEO operated WA-360-P in which the Artemis-1 well is expected to commence drilling next week.
With this transaction, MEO has restored a sizeable equity position in the permit. This provides significant flexibility and optionality in defining and crystallising future potential shareholder value.
These permits cover a combined area of 1,943.6 km2 and were awarded in April 2009. They are currently in Permit Year 2 of their work program. Seismic acquisition is programmed for Permit Year 3 commencing 21st April 2011.
In a separate agreement, MEO has granted RedRock Energy Pte an option to acquire a 5% carried interest in each permit in consideration for the technical work RedRock has undertaken on the permits to date. Under this agreement, MEO will carry RedRock’s 5% participating interest in each permit until the permit is either relinquished or if MEO elects to drill a well in either of the permits, will carry RedRock’s 5% participating interest through the first well in that permit.
MEO will continue to evaluate opportunities to add attractive acreage to its portfolio to ensure the replenishment of a seriatim of opportunities to add shareholder value.
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