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MEO Farms Out WA-488-P to Rex International Subsidiary

Source: www.gulfoilandgas.com 5/21/2015, Location: Not categorized

MEO Australia has announced the execution of final documentation to farmout of a 30% participating interest in the WA-488-P exploration permit to a wholly owned subsidiary of SGX-listed Rex International Holding. Commenting on the announcement, MEO’s MD & CEO Peter Stickland said: 'MEO is pleased to have completed the farm-out of WA-488-P to Rex.

Rex’s assessment provides an independent verification of the strong prospectivity of block WA-488-P. Importantly, the agreement significantly increases the potential for MEO to be fully funded through the drilling of Beehive-1. MEO continues to engage with a number of other parties who are also evaluating WA-488-P and additional parties can be accommodated in the Permit by the current agreement.'

Transaction Details:
The execution of the farm-out agreement provide Rex with an immediate 30% participating interest in the WA-488-P permit while MEO retains a 70% interest.

The final farmout terms includes options for Rex to increase its participating interest (if MEO has not secured alternative funding) by an additional 10% in return for procuring full funding of a 3D seismic survey over the Beehive prospect, which Rex can increase to 20% if it commits by 30 June 2015 to fund the 3D Seismic Survey and paying MEO US$500,000 cash.

Rex has a further option to increase its participating interest in return for procuring full funding of the proposed Beehive-1 well (if MEO has not secured alternative funding). If this option is exercised by Rex or its nominee, MEO will have a full carry through a Beehive-1 well for its residual 20% participating interest.

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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