MEO Australia Limited (ASX: MEO; OTCQX: MEOAY) advises that it has executed binding agreements subject only to normal regulatory approvals, with Finder Exploration Pty Ltd (Finder) to farmin to the NT/P79 exploration permit in the Joseph Bonaparte Gulf.
NT/P79 covers an area of 6,415 km2 and is located between MEO’s existing NT/P68 (50%) and WA-454-P (100%) permits. The permit is currently in Permit Year 4 and contains several geological features which MEO will assess following receipt of recently acquired Geoscience Australia 2D seismic data.
No additional seismic acquisition is planned. MEO considers there is sufficient new seismic data to assess whether one of the identified geological features can be matured to drillable prospect status.
Under the farmin agreement MEO will acquire a 65% participating interest and operatorship of the permit in return for reimbursing Finder $200,000, representing MEO’s participating interest share of sunk costs in the permit.
MEO will Operate the permit and carry 100% of the study costs through to completion of a joint farmout subject to confirmation of a drillable prospect. The parties have a drill/drop election decision before entering the final permit year in June 2014.
Source: MEO Australia Limited
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