This is the important bitThe funds from the placement together...

This is the important bit

The funds from the placement together with existing cash reserves will underpin the financial commitment involved in the planned exercise of the drill/drop option for WA-360-P. MEO must make an irrevocable commitment to its co-Venturers by 31 December 2009 to fund the drilling of the commitment well in the permit in order to retain its 70% interest. The board of directors views this capital raising an appropriate risk management measure to provide certainty for shareholders while the WA-360-P farm-in is being finalised. Assuming the farm-in has been finalised the capital raised will be used to advance MEO’s existing projects and to secure attractive growth opportunities.