Petrobras' wholly owned subsidiary Petrobras Internacional Braspetro acquired from MEO Australia a 50% participating interest in the exploratory Block WA-360-P, located in the Australian North Carnarvon Basin, for US $39 million.
Spanning 297 acres (1.2 square kilometers), the block lies in waters measuring 1,640 feet (500 meters) and is located near an area that houses several gas discoveries. The concession contract is in its fifth year of the exploratory period with 3D seismic already performed, indicating good potential for gas discoveries. Under the farm-in contract and subject to regulatory approval, Petrobras will fund 100% of the drilling expenses of the first well Artemis-1, limited to $41 million.
Drilling of the well is scheduled for the second half of 2010. If a discovery is made, Petrobras will also pay a bonus of $31.5 million to MEO and will carry MEO's participation (20%) of the cost to drill two additional wells, capped at $62 million per well. MEO remains as operator of the block, holding a 20% interest, and Cue Exploration Pty Ltd and Moby Oil and Gas Ltd. each hold 15%. Petrobras has the option to become operator once the first well is completed.
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