Rex joins MEO in prospective permit offshore Western Australia
MEO Australia (ASX: MEO) has completed the farm-out of 30% of the WA-488-P exploration permit offshore Western Australia to a subsidiary of Rex International Holding.
Although MEO retains a 70% interest, there are options for Rex to increase its stake by a further 10% (if MEO does not secure alternative funding) in return for procuring full funding of a 3D seismic survey over theBeehive prospect.
Rex can increase its stake to 20% if it commits by June 30 to fund the survey and pay MEO $0.5 million cash, or higher though fully funding of the proposed Beehive-1 well.
The partners will seek an extension and suspension to the current permit term if they decide there is insufficient time to plan for and acquire the survey ahead of the well, currently scheduled for late 2016.
MEO continues to engage with other parties that also evaluating the permit.