this is not too bad either MD & CEO Jürgen Hendrich MEO’s primary focus has been on farming out WA-360-P in which we hold a 70% interest. To attract a significant global player, we need to offer a substantial equity interest. As such, we are willing to offer up 50% and retain 20%. For this, we expect the incoming party to reimburse past seismic costs, fund the drilling of the commitment well and in the event of a discovery, fund MEO’s residual 20% interest in two additional wells. Notwithstanding the financial crisis, the interest in our farm-out has been very strong and, without exception, every company that has visited our data room were pleasantly surprised at the quality of our technical work. Indicative offers are currently being progressed towards a binding farm-in agreement and the Company remains on track to complete a transaction by 30th September 2009. In relation to our NT/P68 permit (90-100% interest), we are currently in the process of extending our tenure to the block and are completing technical studies prior to embarking on the farm-out process early next year following renewal of the permit. We have already received a number of unsolicited approaches by large, global E&P companies who expressed an interest in farming into the permit. MEO is therefore confident that we will attract a suitable partner in this permit once we formalise the farm-out process.
MEO Price at posting:
63.0¢ Sentiment: None Disclosure: Held
