Business
MEO Update
MEO Update.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n Xtract Energy plc\n04 June 2007\n\n\nXtract Energy plc\n\nMEO announcement\n\n4 June 2007\n\nSet out below is the text of an announcement released today by MEO Australia\nLimited, which is quoted on ASX. Xtract Energy plc owns approximately 28 per\ncent of MEO Australia's issued share capital (before the share placement\nreferred to in the announcement).\n\n'FARMIN BY PETROFAC RESOURCES AND PLACEMENT\n\nKey points\n\n •Petrofac Resources farms into NT/P68 for a 10% interest by funding 25% of\n well costs\n\n •Placement to institutional investors completed raising A$41.25 million\n\n •Share Purchase Plan for shareholders as at Record Date June 13, 2007\n\nMELBOURNE, AUSTRALIA (June 4, 2007) - MEO Australia Limited (ASX: MEO) is\npleased to announce that Petrofac Resources Limited has farmed into the\nCompany's Exploration Permit, NT/P68. Petrofac will meet 25% of the well costs\nassociated with the 2007 appraisal drilling program to earn a 10% interest and\nhas an option to increase this farm-in interest to 15% by funding 37.5% of the\nwell costs.\n\nMEO decided late in 2006 to offer up to 30% of NT/P68 for farm-in by strategic\npartners that offered strong operational and relevant technical expertise.\nAdditionally the farminee would need to demonstrate alignment to MEO's\nobjectives to ensure the rapid commercialization of hydrocarbons confirmed by\nthe 2007 drilling program and the approved gas-to-liquid (GTL) projects.\n\nPetrofac has also been granted an option to participate in the proposed Tassi\nShoal LNG and methanol projects at the same equity participation level as the\nfarm-in. Petrofac's participating interest in the methanol project would reduce\nAir Product's 50% interest (MEO will retain its current 50% interest).\nPetrofac's participating interest in the LNG project would reduce MEO's current\n100% interest. Petrofac would earn its interests in the GTL projects by\ncontributing to the initial front end engineering and design (FEED) costs and\npaying a NPI royalty to MEO from the Petrofac share of the project's eventual\noperating profits.\n\nPetrofac brings strong engineering, procurement, construction and operational\nexpertise to the NT/P68 joint venture through their EPC and facility management\ndivisions. Petrofac also provides an experienced sub-surface team with specific\nskills in hydrocarbon prod...