Beehive farm out imminent

hi all

I have not posted for sometime given the Mosman waffle of late...

Article below is from upstream online dated today - say no more re beehive...  if you have not been acquiring meo over the last few month best get on board as beehive partner to be announced in the next week or two according to article below.  Very, very few new jvs are getting through the majors' investment decision gates at present given poo. Suffice to say 3d at years end looking very likely as per article below.  If you are expecting eni as beehive partner then prepare to be surprised as rationale of jv partner will become very clear when announced....

With regards to TS, the fact that the potential TS partner met with Shell is huge for it is shell that is looking to sell Es stake  but as eni price offer was ridiculously low ball and did not budge then enter the golden dragon ts partner who has the war chest to not only pull off ts capex but also buy shell's Es stake. Remember that Es no longer fits shell's investment model.  Expect potential delays to Es/meo joint meeting if confidentiality agreements, mentioned in last quarterly not signed by Es jv partners in a timely fashion.  Why meet if there is no regulatory reason.  The majors only ever meet if there is a reason as time is money and in the o&g game time is very big money.  So when four majors come together and are prepared to meet with a minnow like meo there has to be a very, very good reason...  Lots of talk and articles of Barossa gas going to Darwin but no a single whisper in any article about what is happening with Es...

More posts soon.

Adl





MEO Australia is on the verge of sealing a farm-in partner for an exploration permit in the Petrel sub-basin off the coast of north-west Australia.
Speaking at the PESA Deal Day in Melbourne on Sunday MEO managing director Peter Stickland revealed the company was set to finalise an agreement which will see it farm-out a 30% share in the WA-488-P permit “within the next week or two”.

“With the farminee we are investigating the merits of a 3D seismic which we would be aiming to acquire late this year,” Stickland added.

MEO first revealed it had executed an option agreement to farm-out the stake in WA-488-P to the unnamed partner in February this year, along with options for a 30% stake in MEO’s AC/P50 and AC/P51 permits.

Stickland said Sunday that the company was looking to farm-out a further 50% interest in the WA-488-P permit, which would leave the company with a residual 20% interest in the block containing the Beehive prospect.

The work commitments for WA-488-P require an exploration well to be drilled in the third permit year, which commences 22 November.

MEO currently expects drilling at Beehive to take place sometime between 2016 and 2017 at an estimated cost of A$20 million (US$16.1 million).

Beehive lies in a water depth of 40 metres and is estimated to hold a best estimate 926 million barrels in prospective resources.

Stickland also revealed on Sunday MEO was looking to farm-out up to a 30% stake in its WA-454-P permit where it is looking to drill the Breakwater prospect in either 2016 or 2017.

It is also offering up to a 50% share in its PEP51153 permit off New Zealand where it is likely to drill the Shannon-1 well before the end of the year.