MEO Australia has been formally notified by the international exploration company (farminee) that it has received final board approval to proceed with the exercise of its option to farm into WA-488-P.
Offshore staff
MELBOURNE, Australia –MEO Australia has been formally notified by the international exploration company (farminee) that it has received final board approval to proceed with the exercise of its option to farm into WA-488-P.
Subject to regulatory approval, the exercise of the option provides the farminee with a 30% participating interest in the permit with further options to increase its participating interest by an additional 10% in return for procuring full funding of a 3D seismic survey over the Beehive prospect and an additional 40% for procuring full funding of the proposed Beehive-1 well.
If these further options are utilized by the farminee or its nominee, MEO will have a full carry through the Beehive-1 well for its residual 20% participating interest. Alternatively, in the absence of the exercise of the additional equity options, the farminee also has the right to withdraw from the permit if MEO has not entered into other arrangements to fund its future work program prior to four months before the end of permit year 3.
