Rex Bonaparte Gulf oil company has reached a settlement with MEO Australia to withdraw from the jointly held license offshore Australia.
The company, a subsidiary of Singapore-listed Rex International Holding, holds a 30% stake in the WA-488-P, with MEO holding the remaining 70%. Following the settlement, MEO will own a 100% share in the block.
Rex recently advised MEO that it had changed its corporate strategy, in light of challenging market conditions, to focus on its key discovery assets in Norway and Oman.
MEO has therefore facilitated Rex’s accelerated withdrawal from its farm-in to WA-488-P as a practical measure to provide MEO unfettered rights to pursue alternative farm out options to progress the exploration of the permit, the Australian oil company said.
WA-488-P contains the Beehive Prospect, one of the largest hydrocarbon prospects in Australia. It is also located between the producing Blacktip gas field and undeveloped Turtle and Barnett oil discoveries.
MEO has received US$53,500 as cash compensation in recognition of the costs incurred by the Company through the process of negotiating the original transaction to bring Rex into WA-488-P earlier in 2015 and their subsequent exit.
MEO’s MD & CEO Peter Stickland said: “We are pleased to have reached settlement quickly with Rex, following its change in corporate strategy, resulting in MEO regaining a 100% participating interest in WA-488-P. The path is clear to continue engagement with a number of other parties that are evaluating WA-488-P, which contains the Beehive prospect, one of the largest undrilled hydrocarbon structures in Australia. MEO will also continue to focus on accelerating activities on priority targets New Zealand and Cuba, where the Company sees very significant potential for Block 9, which is located in a proven hydrocarbon system.”