MELBOURNE, Australia – MEO Australia Ltd. has provided an update regarding the G2/48 concession in the Gulf of Thailand, where it holds a 50% participating interest. The remaining 50% participating interest is currently held by Mubadala Petroleum (SE Asia) Ltd., which is the operator of the concession.
Despite strong farm-in interest, the farm-out process did not yield a commercially acceptable offer in the time frame available, due to a combination of factors including the short time frame for the process and the limited technical maturity of the prospectivity of the concession.
Since Mubadala planned to exit the concession Jan. 6, prior to the expiry of the current concession year on Jan. 7, MEO has submitted a work program variation application to Thailand’s Department of Mineral Fuels (DMF) to defer the 2014 well obligation into 2015. This variation will provide MEO time to complete additional technical work aimed at elevating one or more of the identified leads in the concession to a drillable prospect confidence level.
If the work program variation application is not granted by the DMF, MEO will be deemed to have exited the concession as of Jan. 6. If the request is granted by the DMF, MEO will assume operatorship and secure 100% participating interest in the concession.