Petrobras Intends to Withdraw from WA-360-P, Offshore Australia

MEO Australia Limited advises that Petrobras International Braspetro BV (Petrobras) has provided notice to the WA-360-P Joint Venture participants today that it intends to withdraw from the Permit effective from the end of the current Permit year.

While MEO has identified a significant lead in WA-360-P, it does not meet Petrobras’ materiality threshold. Once the withdrawal process is complete, Petrobras’s 50% participating interest will initially be allocated to the remaining participants on a pro-rata basis in accordance with the provisions of the Joint Venture Operating Agreement.

MEO operates WA-360-P (25%) and WA-361-P (50%) in the Carnarvon Basin, adjacent to the producing North West Shelf Gas Project fields. The close proximity of the permits to existing infrastructure allows any discovered hydrocarbons to be readily commercialised through the existing or planned LNG projects in the area.

MEO will continue to work together with Cue Energy Resources Limited and Moby Oil & Gas Limited to finalise the Permit renewal process and expects to submit the renewal application by the end of October.

“MEO has forged a solid and professional relationship with Petrobras since 2009 and looks forward to building on this strong relationship in the future.”, MEO said on its website.

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Source:MEO Australia ,September 22, 2011;