MEO Australia Ltd.’s wholly owned subsidiary has been formally notified by the international exploration company (an undisclosed farminee) that it has received final board approval to proceed with the exercise of its option to farm into WA-488-P offshore Western Australia.
Subject to final farm-in documentation and customary regulatory approvals, the exercise of the option provides the farminee with a 30% participating interest in the permit with further options (if MEO has not secured alternative funding) 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 a 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.
Final farm-in documentation is scheduled to be completed within approximately eight weeks.