MEO Australia (ASX:MEO) has executed an option agreement with an...

MEO Australia (ASX:MEO) has executed an option agreement with an unnamed international exploration company that could accelerate exploration of its offshore oil and gas tenements.

The farminee has already exercised its option to acquire a 30% interest in WA-488-P, which contains the giant Beehive prospect, in return for funding 30% of forward expenditure.

This follows completions of their technical assessment.

In the absence of MEO having a funding alternative, provisions are included for the Farminee to acquire an additional 10% equity in return for procuring full funding of a 3D seismic survey over the Beehive prospect and an additional 40% for funding the proposed Beehive-1 well.

With regards to AC/P51 (which contains the Ramble On prospect) or AC/P50, the agreement provides an option to the farminee to conditionally acquire a 30% interest in the applicable permit and be obligated to fund 30% of the forward expenditure in the permit.

The farminee is currently undertaking their technical assessment of AC/P50 and AC/P51.

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