MEO Receives Cash Consideration from Petrobras

MEO confirmed receipt of approximately US $39 million cash consideration from Petrobras in relation to the WA-360-P farm-in. The cash consideration incorporates approximately US $7.5 million of seismic related back costs, together with the first US $31.5 million cash bonus.

The company will now proceed to settle its transaction with Moby relating to the acquisition by MEO of an additional 5% participating interest in WA-360-P for US $7 million, of which a US $1.5 million deposit has already been paid.

A further US $1 million has been committed to the acquisition of a 15% participating interest in WA-361-P from Gascorp Australia and will be paid upon receipt of regulatory approval for the transfer of equity.

The US $32.5 million cash balance remaining after these commitments, together with the A $36.4 million consolidated cash balance at September 30, will be used to pursue new venture opportunities.