new moby press release, page-3

WA-360-P
PARTICIPATION BY PETROBRAS
PRELIMINARY UNDERSTANDING FOR A GAS DEVELOPMENT SCENARIO
Moby Oil & Gas Limited (Moby) (ASX Code: MOG) provides this release in relation to the announcement made earlier today by MEO Australia Limited (MEO) (ASX Code: MEO) concerning the signing of a farmout agreement between MEO and Petrobras International Braspetro BV (Petrobras) relating to WA-360-P.
The announcement by MEO is a most positive outcome in relation to WA-360-P, and is welcomed by Moby.
Mobys 15% interest in WA-360-P is held by its wholly owned subsidiary, Rankin Trend Pty Ltd (Rankin Trend). On 21 December 2009, MEO, through its subsidiary, North West Shelf Exploration Pty Ltd (North West), committed to Moby to drill a well in WA-360-P on the basis that Moby will have no obligation to meet any part of the costs of that well attributable to Rankin Trends 15% permit interest. MEO have advised that the Artemis Prospect is to be the target of that well. The Artemis Prospect offers significant upside, if successful, and has a planned spud date of late 2010.
The farmout of a 50% interest in WA-360-P by MEO to Petrobras and the commitment of Petrobras to fund at least one well in WA-360-P, and other commercial arrangements between MEO and Petrobras, is significant external validation of the merits of the Artemis Prospect.
Over a period of some months, MEO has been in negotiation with Petrobras in relation to MEOs aggregate 70% interest. While Moby was not a party to these negotiations, it was at all relevant times supportive of MEO efforts. Moby recognises the undoubted technical skills and financial heft that Petrobras brings to the WA-360-P joint venture.
During the course of the negotiations between Petrobras and MEO, Petrobras sought agreements from all participants in the WA-360-P joint venture. These agreements relate to a collective understanding that a discovery at Artemis, if of sufficient size, would suggest LNG as the preferred development option. Moby is pleased to advise that it has entered into an agreement with Petrobras and MEO confirming that an integrated LNG development is a permitted development scenario under the Joint Venture Operating Agreement and Moby has also agreed to commit its share of any gas in WA-360-P to such a development, if an LNG Project is confirmed by the Joint Venture. Moby has also agreed to various relatively minor amendments to the Joint Operating Agreement between the parties, as were proposed by Petrobras
Interests in WA-360-P, following approval of the MEO farmout, will be:
Petrobras 50%
MEO (North West) 20% and Operator
Moby (Rankin Trend) 15%
Cue Energy Resources Ltd (Cue Exploration Pty Ltd) 15%
By Order of the Board
J.G.