MEO Australia Limited advises completion of the final step in acquiring an additional 5% interest in WA-360-P with the payment of US$5.5 million to Rankin Trend Pty Ltd (a wholly owned subsidiary of Moby Oil & Gas). The 5% participating interest is free carried through the drilling of Artemis-1 well planned for early/mid November 2010. MEO has a 25% interest in WA-360-P.

The purchase of the 5% interest in WA-360-P by MEO subsidiary North West Shelf Exploration Pty Ltd was for a cash consideration of US$7 million. A deposit of US$1.5 million was previously paid on the signing of the Sale and Purchase Agreement.

The US$5.5 million payment follows receipt by MEO of approximately US$39 million cash consideration from Petrobras in relation to the WA-360-P farm-in. The cash consideration incorporates approximately US$7.5 million of seismic related back costs, together with the first US$31.5 million cash bonus.

WA-360-P Participants Petrobras International Braspetro BV (a subsidiary of Petrobras): 50% North West Shelf Exploration Pty Ltd a wholly owned subsidiary of MEO: 25% Cue Energy Resources Limited: 15% Rankin Trend Pty Ltd a wholly owned subsidiary of Moby Oil & Gas: 10% * MEO Australia Limited is Operator for the Joint Venture

Tags: MEO Australia Limited