MEO Australia announced that its wholly-owned subsidiary Rayong Offshore Exploration has signed a farm-in agreement with Pearl Oil Offshore (Pearl Oil) for a 50% stake in a block in the Gulf of Thailand.
G2/48 is located in shallow water, close to the Jasmine producing oil field and the Manora oil discovery, which is currently under development.
MEO said it would earn its 50% share in the area by reimbursing 50% of the costs of the 450km2 3D seismic survey, as well as paying 66.6% of the 2012 commitment well. The survey was acquired in the fourth-quarter of 2011.
MEO Australia CEO and managing director Jürgen Hendrich said that the latest acquisition was in line with the company's strategy of expanding its operations in South East Asia through an economical entry approach.
"We have evaluated a number of opportunities in the Gulf of Thailand during the past 12 months and this opportunity represents a compelling entry into an emerging oil play fairway," he said.
Drilling of the commitment well is expected to start during the third quarter of this year, subject to rig availability.
Image: MEO has signed a farm-in agreement to earn a 50% participating interest in a shallow-water block in the Gulf of Thailand. Photo: courtesy of MEO Australia Limited.