MEO Australia Limited, on behalf of its wholly owned subsidiary MEO New Zealand Pty Limited, reported Wednesday that shareholders of Kea Petroleum Limited (Kea) have approved the sale of its 70 percent interest in PEP 51153 to Caliera Fund Limited (Caliera), a privately-owned New Zealand company. The sale is subject to New Zealand regulatory approval.
PEP 51153, located in New Zealand’s onshore Taranaki basin, contains the Puka oil field (currently suspended) and the Shannon oil prospect. MEO elected not to exercise its pre-emptive right in purchasing Kea’s 70 percent as it considers its current 30 percent, non-operating interest an appropriate risk-reward profile for this permit.
MEO considers the sale of PEP 51153 to well-funded Caliera strengthens the likelihood of a more aggressive approach to unlocking the value potential of the permit, including drilling activity in 2015-16.
MEO looks forward to discussing the future work program with Caliera following receipt of regulatory approval, and will update shareholders in due course.
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