MEO Australia Receives Approval to Vary Permit WA-488-P Work Program



MEO Australia Ltd. reported Wednesday that it has been notified by the National Offshore Petroleum Titles Administration (NOPTA) of the approval of its application to vary the WA-488-P (MEO 70 percent) work program by suspending and extending Permit Year 2 by 6 months. This additional time will provide an opportunity for MEO and prospective farminees to further undertake proprietary seismic processing and consider acquiring a 3D seismic survey over the Beehive prospect prior to drilling the Beehive-1 exploration well. The details of the revised WA-488-P Work Program are listed below.

If MEO and its prospective farminees determine that a 3D seismic survey is warranted, MEO intends to further apply to NOPTA to vary the WA-488-P work program to allow sufficient time to acquire, process and interpret the 3D seismic survey prior to to drilling the Beehive-1 exploration well. If this variation were to be accepted, MEO would expect to drill Beehive-1 prior to November 2017. MEO gives no guarantee, express or implied, as to the outcome of the applications; such decisions are in the complete discretion of the NOPTA. MEO would not typically announce the potential to make such an application (prior to the application being made), but has done so for prudence in the context of the current takeover bid for MEO ordinary shares by Mosman Oil and Gas Ltd. A second supplementary target's statement will be lodged by MEO in respect of the above shortly.

Revised WA-488-P Work Program (100 Percent Joint Vernture Share)

  • Year 2
    • Start Date - May 22, 2014; End Date - Nov. 21, 2015
    • Minimum Work Requirements
      • Geological and Geophysical Studies; Estimated Expenditure - $155,960 (AUD 200,000)
      • Survey Data Proprietary Processing; Estimated Expenditure - $233,880 (AUD 300,000)
  • Year 3
    • Start Date - Nov. 22, 2015; End Date - Nov. 21, 2016
    • Minimum Work Requirements
      • One Exploration Well; Estimated Expenditure - $15.59 million (AUD 20 million)
  • Year 4
    • Start Date - Nov. 22, 2016; End Date - Nov. 21, 2017
    • Minimum Work Requirements
      • 154 square miles (400 square kilometers) New Seismic Survey; Estimated Expenditure - $3.9 million (AUD 5 million)
  • Year 5
    • Start Date - Nov. 22, 2017; End Date - Nov. 21, 2018
    • Minimum Work Requirements
      • Geological and Geophysical Studies; Estimated Expenditure - $155,960 (AUD 200,000)
  • Year 6
    • Start Date - Nov. 22, 2018; End Date - Nov. 21, 2018
    • Minimum Work Requirements
      • One Exploration Well; Estimated Expenditure - $15.59 million (AUD 20 million)

MEO's MD and CEO Peter Stickland commented on the announcement:

"The Beehive prospect is one of the largest hydrocarbon structures in Australia and this work program variation is an important step to provide sufficient opportunity for MEO and its prospective farminees to consider the potential for a 3D seismic survey to de-risk the Beehive prospect."



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