Australian independent oil company MEO Australia will ask for a revision of its work obligations under its WA-454-P licence, offshore Australia.
According to the company’s statement, MEO will seek to extend by 6 months Permit Year 4 (currently ending 8th June 2015) to provide further time to undertake seismic reprocessing. Also, the company is looking to postpone the current well drilling commitment from Permit Year 5 (currently scheduled for June 9, 2015) to Permit Year 6 (currently starting June 9, 2016). If both applications are successful, the proposed Breakwater-1 exploration well will need to be drilled prior to the revised permit expiry date of 8th December, 2017.
Furthermore, the Joint Venture has agreed that the notice period for a drill or drop decision has been extended to allow time for receipt of the Titles Administrator’s decision on both of the applications, MEO has explained.
MEO’s MD & CEO, Peter Stickland , said: “The variation to the work program is being sought to allow important additional technical work to be done to optimise the location of the Breakwater-1 well.”
In its statement MEO has said it would not typically announce the decision to make such an application (prior to the application being made), but has done so for prudence in the context of the current takeover bid for MEO ordinary shares by Mosman Oil and Gas Limited.
MEO’s management has advised its shareholders to reject the Mosman takeover offer, deeming it “highly conditional, opportunistic and uncertain.”