MEO farms in to Timor Sea permits

MEO Australia has agreed to acquire Silver Wave Energy’s 100% interest in two exploration permits in the Ashmore Cartier region of the Timor Sea.

Offshore staff

MELBOURNE, Australia -- MEO Australia has agreed to acquire Silver Wave Energy’s 100% interest in two exploration permits in the Ashmore Cartier region of the Timor Sea.

The consideration for permits AC/P50 and AC/P51 is $270,000. Silver Wave has an option to re-acquire a 10% interest in each concession prior to the expiry of Permit Year 3 by repaying 20% of MEO’s costs.

The concessions, awarded in April 2009, cover a total area of 1,943.6 sq km (750 sq mi). Both are currently in Year 2 of their work programs. Seismic acquisition is scheduled for Year 3, starting April 21.

MEO has granted RedRock Energy the option to acquire a 5% carried interest in each permit in consideration for technical work RedRock has performed on both permits. The carry would also apply if MEO elects to drill a well.

Yesterday, Shell handed over to MEO the Songa Venus semisubmersible drilling rig, which is now under tight tow to the Artemis-1 exploration well location in permit WA-360_P off Western Australia.

The journey should take eight days at current tow speed, and the well should spud shortly after being anchored on location.

11/15/2010

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