MEO Australia Limited advises that the options granted to Resource Development International Limited (RDI) over the company’s Timor Sea projects lapsed at close of business on 31st December 2008.

These options were conditional upon RDI achieving a public listing by year end 2008. The options granted to RDI in July 2008 involved a staged farm-in to MEO’s NT/P68 exploration permit containing the Blackwood (MEO 100%) and Heron (MEO 90%) gas discoveries, the Tassie Shoal Methanol Project (TSMP) and Timor Sea LNG Project (TSLNGP). MEO plans to commence a farmout process to attract a farmin partner during 2Q. RDI remains a valued JV partner in MEO’s 35% owned WA-361-P permit, the focus of the forthcoming Zeus-1 well, targeting >10 Tcf potential gas-in-place close to existing and planned LNG producing infrastructure.

RDI is paying 80% of Zeus-1 to a cap of US$31.25m. MEO has been advised to expect the release of the Songa Venus drilling rig from its current well on or about the 8th January 2009. Once the rig is released to MEO, it will undergo a 6-7 day tow to the Zeus-1 location.

Participants Companies in WA-361-P and Equity North West Shelf Exploration Pty Ltd (Wholly owned subsidiary of MEO Australia Limited) Operator: 35% Resource Development International Limited (Unlisted): 35% Cue Energy Resources Limited (ASX: CUE): 15% Gascorp Australia Pty Ltd (Unlisted): 15%

Tags: MEO Australia Limited