MEO confirms 30 pct farm out of Beehive prospect
MEO Australia said that its unit has been notified by the international exploration company that it has received final board approval to proceed with the exercise of its option to farm into WA-488-P.
According to the company statement, the exercise of the option provides the farminee, which shall remain confidential until the farmin agreement is executed, with a 30% participating interest in the permit with further options to increase their participating interest by an additional 10% in return for procuring full funding of a 3D seismic survey over the Beehive prospect and an additional 40% for procuring full funding of the proposed Beehive-1 well.
If these further options are utilised by the farminee or its nominee, MEO will have a full carry through a Beehive-1 well for its residual 20% participating interest.
Alternatively, in the absence of the exercise of the additional equity options, the farminee also has the right to withdraw from the permit if MEO has not entered
into other arrangements to fund its future work program prior to 4 months before the end of Permit Year 3.
Final farmin documentation is scheduled to be completed within approximately 8 weeks.