MELBOURNE, Australia – Rayong Offshore Exploration Ltd. has agreed to farm into 50% of the block G2/48 concession in the Gulf of Thailand.
According to Rayong’s parent company MEO Exploration, the block is in shallow water, close to Pearl Oil Offshore’s producing Jasmine oil field and the Manora oil discovery currently under development.
Pearl will remain operator of block G2/48. Under the farm-in terms MEO, will reimburse Pearl 50% of the costs of a 450-sq km (174-sq mi) 3D seismic survey acquired late last year designed to mature one of numerous oil prospects.
MEO will also pay 66.6% of this year’s commitment well on the block on the selected prospect, capped at a gross well cost of $5 million. Above this level, MEO will pay its participating interest.
Drilling should start during 3Q 2012, subject to rig availability.