MELBOURNE, Australia – MEO Australia (ASX: MEO) has executed an option agreement with an unnamed international exploration company to farm in to 30% of three permits offshore western and northern Australia.
WA-488-P contains the giantBeehive prospect. Here the farminee could potentially acquire a further 10% stake by procuring full funding of a 3D seismic survey over the prospect, and an additional 40% equity for full funding of the proposed Beehive-1 well.
The farminee is currently conducting a technical assessment of permit AC/P51, containing the Ramble On prospect, and AC/P50. In this case, the farminee can conditionally acquire a 30% interest, with the option to withdraw in the event of an unfavorable outcome from the permit renewal process, due to start later in the current quarter.
MEO’s managing director and CEO Peter Stickland said: “MEO’s strategy is to farm down its northern Australia permits in order to participate in the drilling of quality prospects at minimal cost to MEO…
“Separately MEO continues to engage with a number of other parties who are evaluating WA-488-P and additional parties can be accommodated in the permit by the current agreement.”