Puka-3 to spud in late July

Kea has reported that a drill has been contracted to spud Puka-3 in late July.

LSE Alliance news

The report also states that: 'Now that phase 1 is finished, MEO can elect to earn a further 20% interest in the site within six months, through a further payment of NZD7.5 million which will be used for a second phase on site.'

This may not be correct as MEO's farmout agreement states that Phase I will be completed after:

• The workover of Puka-1 and Puka-2
• Testing of the suspended Douglas-1 exploration well and
• Drilling Puka-3

MEO also states that: 'within 6 months of completing Phase I, MEO can elect to increase its participating interest to 50% of the project by funding NZ$7.5m of the indicative Phase II work program.

MEO's farmout agreement release.

All that has been reported is the completion of the Puka-2 workover which is back in production. In this release it also states that MEO will be entitled to a 30% share of Puka oil production on completion of Puka-3'.

Puka-2 workover update

To confuse things even more in the Kea farmout document it states:'Upon assessment of the results of Phase 1, MEO can elect within 6 months to earn an additional 20% participating interest in the Permit by funding NZ$7.5m of a NZ$9m second phase work program ("Phase 2")'.

Kea's farmout release

Hopefully MEO will clarify the situation when it confirms the Puka-3 rig contract to the market.

#:>))