MEO Australia Limited says that its wholly owned subsidiaries have executed an Option Agreement with an international exploration company (the Farminee) providing the Farminee with an option to farmin to any of the WA-488-P, AC/P50 and AC/P51 permits offshore Australia.

With regards to WA-488-P (which contains the giant Beehive prospect) the Option Agreement provides an option for the Farminee to acquire a 30 percent interest in the permit and be obligated to fund 30 percent of the forward expenditure in the permit.

In the absence of MEO having a funding alternative, provisions are included for the Farminee to acquire an additional 10 percent equity in return for procuring full funding of a 3D seismic survey over the Beehive prospect (if required) and an additional 40 percent equity for procuring full funding of the proposed Beehive-1 well.

Tags: MEO Australia Limited