MEO Australia Limited has executed a binding sales and purchase agreement with Silver Wave Energy Pte Ltd (“Silver Wave”) to acquire their 100% interest in exploration permits AC/P50 and AC/P51 in the Ashmore Cartier region of the Timor Sea.
Consideration for this acquisition is US$270,000 payable upon receipt of regulatory approvals for the equity transfer. As part of the agreement, Silver Wave has an option to acquire a 10% working interest in each permit prior to the expiry of Permit Year 3 by repaying 20% of MEO’s costs, including acquisition costs. These permits cover a combined area of 1,943.6 km2 and were awarded in April 2009. They are currently in Permit Year 2 of their work program. Seismic acquisition is programmed for Permit Year 3 commencing 21st April 2011. In a separate agreement, MEO has granted RedRock Energy Pte Ltd (“RedRock”) an option to acquire a 5% carried interest in each permit in consideration for the technical work RedRock has undertaken on the permits to date. Under this agreement, MEO will carry RedRock’s 5% participating interest in each permit until the permit is either relinquished or if MEO elects to drill a well in either of the permits, will carry RedRock’s 5% participating interest through the first well in that permit. MEO will continue to evaluate opportunities to add attractive acreage to its portfolio to ensure the replenishment of a seriatim of opportunities to add shareholder value.
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Source: Meo, November 15, 2010;