ann. out

MEO Increases interest in WA-361-P & Zeus-1 to 35%
Key Points:  Cue and Gascorp have each elected NOT to fund 5% of the Zeus-1 well Additional 10% interest reverts to MEO, taking interest in WA-361-P to 35%
MELBOURNE, AUSTRALIA (September 21, 2008) -- MEO Australia Limited (ASX: MEO) is pleased to advise that Cue and Gascorp have advised MEO that they have elected not to exercise their respective options to each fund 5% of the Zeus-1 well to retain a 20% working interest. Under the terms of the farm-in agreement with MEO, this combined 10% interest will now be transferred to MEO, together with the associated 10% funding obligation, increasing MEO’s interest to 35%.
Location map – WA-361-P
WA-361-P Participating Interests (post Cue/Gascorp Election NOT to fund 5% of Zeus-1)
North West Shelf Exploration Pty Ltd*
35%
Operator
Resource Development International Pty Ltd
35%
Farming in to MEO
Cue Exploration Pty Ltd
15%
ASX:CUE
Gascorp Australia Pty Ltd
15%
Unlisted
*Wholly owned subsidiary of MEO Australia
The Zeus-1 well is targeting a multi-Tcf gas play in the Carnarvon Basin, off Australia’s North West Shelf. MEO is paying 20% of the costs of Zeus-1 to a cap of US$31.25m and retains a 35% interest in the well and WA-361-P. In the event of a major discovery at Zeus-1, MEO sees a plethora of commercialisation options including the possible application of Floating LNG (FLNG) technology. The Songa Venus semi-submersible rig is expected on location late October 2008. Jürgen Hendrich Managing Director & CEO MEO Australia Limited Operator of WA-361-P