MEO in quest for farm-in partner after Apache bails out (Australia)

MEO Australia Limited has informed that Apache Northwest Pty Ltd has elected not to exercise its option to farm-in to the AC/P50 and AC/P51 exploration permits, offshore Australia.

Under the Option Agreement signed in June, 2014, Apache had until 30th September 2014 to elect to potentially acquire a 70% interest in the permits at their renewal, scheduled for April 2015.  Had the options been exercised, the companies would have worked together to renew the permits for another five years.

MEO’s CEO and MD Jürgen Hendrich commented on the announcement:

“While seeing this option lapse is clearly disappointing, we will continue to remain receptive to potential 3rd party farm-in offers in the period leading up to permit renewal in April 2015.”

The AC/P51 exploration permit is located offshore North West coast of Australia, in the Vulcan sub-basin. The permit has an area of 964km2 and is 100% owned by MEO Australia. The exploration permit AC/P50 is adjacent to it.

MEO has identified the Ramble On prospect, incorporating proven reservoir, seal and source intervals in a new structural play for the basin. Ramble On is in water depth of 68m and is part of a trend of prospects that have been identified using the new Zepplin 3D seismic survey and the reprocessed Onnia 3D survey. Ramble On is approximately 15kms from the Montara oil project.

AC/P51 is located on the Western margin of the Vulcan sub-basin, where the Late Jurassic, oil prone source rock presence is demonstrated and related oil discoveries have been made nearby at the Montara and Talbot oil fields.