MEO Australia has signed an option agreement with an unnamed international exploration firm to farm out stakes in any of its three permits.
The deal includes WA-488-P, AC/P50 and AC/P51 permits, offshore Australia.
The agreement will see the firm take 30% interest in WA-488-P, which contains the Beehive prospect, and fund 30% of future spending on the permit.
The firm may also take a further 10% stake, which would cover the costs of a 3D seismic survey on the Beehive prospect.
It also includes an additional 40% interest to cover drilling costs on the proposed Beehive-1 well, leaving MEO with 20% participating interest.
On AC/P51, containing the Ramble On prospect, or AC/P50, the farminee could acquire 30% interest, funding 30% of investment, on condition that the permit renewal process starts in the first quarter of 2015.
The farminee is presently performing the technical assessment of AC/P50 and AC/P51.
MEO MD and & CEO Peter Stickland said: "MEO’s strategy is to farm down its northern Australia permits in order to participate in the drilling of quality prospects at minimal cost to MEO.
"While the agreement to farmout 30% of WA-488-P is conditional, it is an important first step. If the farmout is completed and the included provisions are utilised, MEO will have achieved its objective of a fully carry through a Beehive-1 well for its residual 20% participating interest.
"Separately MEO continues to engage with a number of other parties who are evaluating WA-488-P and additional parties can be accommodated in the Permit by the current agreement."