MEO has been advised by Resource Development International (RDI) that in view of the delay to its IPO it has elected not to exercise its options to farm-in for 35% interests in WA-359-P and WA-360-P.
Given the depth and breadth of the global financial crisis, this outcome, while disappointing was not unexpected. RDI remains a valued co-venturer in relation to WA-361-P where it is funding 80% of the forthcoming Zeus-1 well to a cap of US $31.25 million.
MEO is funding the balance of the well costs. In the event of a discovery being declared at Zeus, RDI will pay MEO's share of two additional wells in the permit, the timing of which will be subject to Joint Venture approval.
Participants in Zeus-1 and WA-361-P:
* Wholly owned subsidiary of MEO Australia Limited
The MEO technical team continues to advance the prospectivity of all three permits and has identified several strong leads which the Company is confident of maturing to drillable prospect status. MEO expects to secure replacement farm-in partners for WA-359-P and WA-360-P in the near future.
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