MEO Australia has reached a commercial settlement to allow a 30% joint venture participant withdraw from its farm-in to the WA-488-P exploration permit.
The company said the deal had been reached with Rex Bonparte after it was recently informed of changes to its management strategy.
Rex plans to focus on its key discovery assets in Norway and Oman instead.
Neon Energy is set to merge with MEO Australia after it became involved in a takeover bid.
It is hoped the move will reduce overhead costs of the two companies, from $8.5million to $3.5million per year.
The company is expected to form with a net cash income of $37million and a board will be formed of the merged groups, comprising two directors from Neon, and two directors from MEO.
