Australia: MEO Completes Acquisition of 5% Interest in WA-360-P

MEO Australia Limited is pleased to advise completion of the final step in acquiring an additional 5% interest in WA-360-P with the payment of US$5.5 million to Rankin Trend Pty Ltd (a wholly owned subsidiary of Moby Oil & Gas).

The 5% participating interest is free carried through the drilling of Artemis-1 well planned for early/mid November 2010. MEO has a 25% interest in WA-360-P.
The purchase of the 5% interest in WA-360-P by MEO subsidiary North West Shelf Exploration Pty Ltd was for a cash consideration of US$7 million. A deposit of US$1.5 million was previously paid on the signing of the Sale and Purchase Agreement.
The US$5.5 million payment follows receipt by MEO of approximately US$39 million cash consideration from Petrobras in relation to the WA-360-P farm-in. The cash consideration incorporates approximately US$7.5 million of seismic related back costs, together with the first US$31.5 million cash bonus.

WA-360-P Participants

Petrobras International Braspetro BV (a subsidiary of Petrobras)  50%
North West Shelf Exploration Pty Ltd a wholly owned subsidiary of MEO 25%
Cue Energy Resources Limited 15%
Rankin Trend Pty Ltd a wholly owned subsidiary of Moby Oil & Gas 10%
*MEO Australia Limited is Operator for the Joint Venture Colin Naylor

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Source: MEO, October  22, 2010;