MEO Receives US$39 Million Cash Consideration from Petrobras (Australia)

MEO Australia Limited is very pleased to confirm 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.

About MEO – MEO has interests in Australia’s two established LNG export provinces, the Carnarvon Basin (exploration) and the Bonaparte Basin (appraisal and development). In the Carnarvon Basin MEO operates the WA-360-P  8 and WA-361-P permits.

In the Bonaparte Basin MEO operates the NT/P68 permit (100%) containing two gas discoveries. MEO has secured environmental approvals for two 1.75 Mtpa methanol plants and a single 3 Mtpa LNG plant on Tassie Shoal, an area of shallow water in the Timor Sea proximal to several undeveloped gas fields.

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Source: MEO Australia Limited, October 15, 2010