MEO Australia has reached an agreement to assign its 50% interest in the WA-454-P exploration to Origin Energy.
The company has been seeking a partner for the permit in the Bonaparte Gulf, offshore northern Australia.
The agreement includes provisions to effectively back-date the assignment to December last year as consideration for MEO’s 50% interest, including MEO to avoid all expenditure associated with WA-454-P this year and in 2017.
MEO managing director and chief executive Peter Stickland said: “While it is disappointing to walk away from WA-454-P, the company believes this is the most appropriate course of action given current cash reserves and macroeconomic factors. The exploration savings from the withdrawal enables MEO to focus on its lower cost and higher priority project, Block 9, onshore Cuba.”