MEO Australia Limited has executed a binding option agreement with Apache Northwest Pty Ltd ('Apache') in relation to the AC/P50 and AC/P51 exploration permits.

Under the agreement, Apache has an option until 30th September 2014 to elect to acquire a 70% interest in, and assume operatorship of, the permits commencing upon their renewal scheduled for April 2015. On exercise of these options Apache will carry MEO's share of all costs up to and including the first well to be drilled in each of the permits. Well costs including testing will be subject to a cap.

Tags: Apache Corporation, MEO Australia Limited