MEO Australia Limited reported that its wholly owned subsidiary Rayong Offshore Exploration Limited has executed a binding farm-in agreement with Pearl Oil Offshore Limited (Pearl Oil) to acquire a 50 percent Participating Interest in the Block G2/48 Concession in the Gulf of Thailand.

G2/48 is located in shallow water, proximal to the Jasmine producing oil field and the Manora oil discovery currently under development.

MEO's CEO and MD Jürgen Hendrich, commented on the announcement, "This farm-in is consistent with MEO's strategy of expanding our portfolio into South East Asia through a low cost entry approach targeting proven hydrocarbon systems with attractive targets.

"We have evaluated a number of opportunities in the Gulf of Thailand during the past 12 months and this opportunity represents a compelling entry into an emerging oil play fairway.

"The Thai fiscal terms makes even a modest sized commercial oil discovery very attractive to MEO shareholders.

"Our newly acquired interest is proximal to Pearl Oil's producing Jasmine oil field (>40 million barrels cumulative production since 2005) and Pearl Oil's Manora oil development (2009 discovery).

"At a corporate level, this transaction adds oil exploration exposure to the portfolio together with a third well to our 2012 drilling campaign which provides shareholders with a number of potential catalysts for value creation in the second half of this year.

"We look forward to working with Pearl and leveraging their regional technical and development expertise."

Tags: MEO Australia Limited