who pays for zeus, page-6

MEO: Songa Venus confirmed arrival at Zeus-1 in OctoberFiled from Singapore
9/17/2008 9:30:02 AM GMT


MELBOURNE: MEO Australia Ltd. expects the drilling programme for WA-361-P to begin on schedule after receiving confirmation on the expected arrival of newbuild semisubmersible Songa Venus in late October. MEO said the operator of the rig, Songa Offshore, confirmed the drilling rig is on track to complete its current work programme and to arrive at the location of Zeus-1 exploration well in late October 2008.

MEO contracted Songa Venus through Australian Drilling Associates (ADA) to drill the multi-Tcf gas prospect. Songa Venus is now contracted to Santos and is presently drilling on Ichthys North-1 well in Browse Basin permit WA-274-P.

The drilling cost for Zeus-1 will be covered by Resource Development International Ltd. (RDI) under a farm-in agreement for 35 percent of MEO's three permits, WA-359-P, WA-360-P and WA-361-P. RDI is aiming for a listing on the Hong Kong Stock Exchange by the end of this year and expects to finalise the documentation in a fortnight, MEO said citing a news article in Australian Financial Review.

MEO now operates the three permits with a 60 percent stake, each through a farm-in deal with Cue Energy, Gascorp and Exoil. Cue Energy retains a 20 percent stake in each of the three permits. Gascorp holds 20 percent interest in WA-360-P and WA-361-P each, while Exoil owns a 20 per cent stake in WA-359-P.