MEO Australia has advised that the options granted to Resource Development International Limited (RDI) over the company's Timor Sea projects lapsed at close of business on December 31, 2008. These options were conditional upon RDI achieving a public listing by year end 2008.
The options granted to RDI in July 2008 involved a staged farm-in to MEO's NT/P68 exploration permit containing the Blackwood (MEO 100%) and Heron (MEO 90%) gas discoveries, the Tassie Shoal Methanol Project (TSMP) and Timor Sea LNG Project (TSLNGP). MEO plans to commence a farm-out process to attract a farm-in partner during 2Q.
The NT/P68 Permit has an initial life of 6 years, with two further 5-year rights of renewal. The permit area covers an area of 12,070 kms2 (2,981,290 acres) and is located immediately to the west of Tassie Shoal. MEO believes that the permit offers considerable scope for the confirmation of significant gas accumulations that could support the future gas demand of either the methanol or LNG projects.
RDI remains a valued JV partner in MEO's 35% owned WA-361-P permit, the focus of the forthcoming Zeus-1 well, targeting >10 Tcf potential gas-in-place close to existing and planned LNG producing infrastructure. RDI is paying 80% of Zeus-1 to a cap of US $31.25 million.
MEO has been advised to expect the release of the Songa Venus drilling rig from its current well on or about the January 8, 2009. Once the rig is released to MEO, it will undergo a 6-7 day tow to the Zeus-1 location.
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