Petrobras buys stake in Artemis concession

Petrobras has paid MEO Australia around $39 million in cash in relation to its farm-in to the WA-360-P permit off Western Australia.

Offshore staff

MELBOURNE, Australia -- Petrobras has paid MEO Australia around $39 million in cash in relation to its farm-in to the WA-360-P permit off Western Australia. This includes around $7.5 million related to back costs for seismic acquisition.

In July, MEO announced agreement with Shell and Songa Offshore to take the Songa Venus to drill the Artemis-1 gas prospect on the permit in late 2010. Well planning activities and related regulatory approvals are progressing; MEO expects to receive the rig from Shell in early to mid-November, depending on progress in Shell’s current program

MEO has committed a further $1 million to acquire a 15% participating interest in WA-361-P from Gascorp Australia, which will be paid once regulatory approval has been received for the transfer.

The exploration permit expires on Jan. 31, but MEO plans to apply for a further five-year term, which will involve a mandatory relinquishment of 50% of the permit.

10/15/2010

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