MEO reports Indonesian operations

The following is an excerpt from Australian firm MEO Australia Limited half-year financial report released on Wednesday.

South Madura PSC, East Java (MEO 90%, Operator)
In June 2011, MEO acquired all of the shares in South Madura Exploration Company (SMEC) which held a 30% interest in the South Madura PSC, Madura Island. Consideration for the acquisition was $479,617 (US$500,000). In late July, AED (60%) sought and became the Operator. In mid-August, an administrator was appointed to AED. In November, the AED interest was purchased by Subaru Limited and in December was on sold to MEO for US$300,000.

Seruway PSC, North Sumatra (MEO 100%, Operator)
In June 2011, MEO acquired all of the shares in Transworld Seruway Exploration Limited (TSEL) which held a 100% interest in the Seruway PSC, offshore North Sumatra, from Transworld Exploration Limited (TEL). As part of the transaction, MEO acquired an office in Jakarta staffed by a small dedicated team. Consideration for acquisition was $4,796,165 (US$5,000,000) cash and a commitment to acquire a 3D seismic survey and drill one exploration well prior to the end of 2012. In the event of successful oil or gas development from the PSC, the acquisition arrangements provide for past cost recovery and net profit interest payments to TEL to be paid out of production revenue.

During the half, a contract for the acquisition of the 3D survey was awarded to PT PGS Nusantara (?PGS?). The 708 km2 survey commenced in December and was completed in early January. The final processed volume is expected early in the 2nd quarter and will be used to define a well location for the 2012 commitment well. Planning for drilling the well commenced during the half as did discussions with drilling rig operators. (end of excerpt)