MEO Gets Approval for South Madura PSC Interest Transfer, Indonesia

MEO Australia announced that the Government of Indonesia, through the Director General of Oil and Gas, has approved the transfer of all of AED South Madura BV’s 60% participating interest in the South Madura PSC to South Madura Exploration Company Ltd (SMEC), a wholly owned subsidiary of MEO.

Operatorship of the PSC transfers to SMEC concurrent with this approval. This transfer represents conclusion of the transaction previously announced in December 2011.

The South Madura PSC is located onshore Madura Island, Indonesia and covers an area of 1,586 km2. The other participant in the PSC is PT Eksindo South Madura (10%).

Subject to regulatory approval for an amended work program, MEO intends to acquire seismic to advance one of several identified leads to prospect status prior to seeking a farm-in partner.

MEO’s CEO and MD Jürgen Hendrich commented on the announcement: “We are very pleased to have obtained the necessary approvals to complete this transaction. MEO has sought an entry to this PSC for several years and now has a 90% participating interest, consistent with our strategy of acquiring high equity positions in prospective permits and adding technical value ahead of seeking a partner to fund drilling. We will now work with the regulator to submit a preliminary work program and budget for the 2013 exploration period.”

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LNG World News Staff, June 18, 2012