14 Aretmis 1. MEO Australia intends using either Nanhai-6 or Songa Venus for its Atremis-1 well in WA-360-P 2. Option taken on one floater with slot offered on the other for well scheduled for late this year 3. Option of using third rig investigated, most probably Diamonds Ocean Epoch 4. Nanhai-6, managed by Maersk, contracted with Woodside until September 2010 after 2-year option not exercised 5. Rig currently working through Enfield/Vincent development & remediation program 6. Songa Venus last week spudded first of 3+3 program for Shell in Browse Basin 7. Firm part of contract scheduled to take 156 days, taking rig through until around August 8. However potentially another four months could be added if all options exercised 9. MEO used Songa Venus for Zeus-1 in Carnarvon Basin WA-361-P, P&Ad water wet at TD 3642m in February last year 10. Ocean Epoch comes off-hire from BHP Billiton in November after option exercised 11. MEO in good position to play rigs off against each other with standard water depth semi-sub market still flat 12. Petrobras farmed in to WA-360-P as predicted by Peter Strachan of StockAnalysis (www.stockanalysis.com.au) some weeks ago 13. Artemis will be giant Brasilian national oil companys first Australian operations 14. Petrobras to take 50% with option for operatorship by funding first well to cap of US$41mil 15. If Artemis-1 successful, option for Petrobras to fund two more follow up wells to cap of US$62mil per well 16. MEO to be free carried for up to three wells with cash bonuses possible too 17. Artemis estimated to contain mean prospective resources of ~12TCF 18. WA-360-P: Petrobras 50%, *MEO 20%, Cue Energy 15% & Moby 15% 19. JV partner Cue yet to respond to news of new farmin arrangements 20. On 24 March Cue said it had been asked to vary a number of significant provisions of the current WA-360-P JV operating agreement 21. Cue believed the proposed amendments disadvantage the company and its shareholders relative to the status quo 22. It was continuing discussions in an attempt to resolve these differences 23. Cue understood to be recalcitrant partner that held up formal approval of Petrobras deal for several weeks
MEO Price at posting:
42.5¢ Sentiment: None Disclosure: Not Held