Australia: MEO Receives US$39 million Cash Consideration from Petrobras

MEO Australia Limited confirms receipt this afternoon 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.

The company will now proceed to settle its transaction with Moby Oil and Gas Pty Ltd  relating to the acquisition by MEO of an additional 5% participating interest in WA-360-P for US$7 million, of which a US$1.5 million deposit has already been paid.

A further US$1 million has been committed to the acquisition of a 15% participating interest in WA-361-P from Gascorp Australia Pty Ltd and will be paid upon receipt of regulatory approval for the transfer of equity.

The US$32.5 million cash balance remaining after these commitments, together with the A$36.4 million consolidated cash balance at 30th September, will be used to pursue new venture opportunities.

[mappress]

Source:Meoaustralia , October  15, 2010;