MEO Australia and Malaysian-based Brooke Dockyard and Engineering Work Corp. have come together to jointly bid on oil and gas exploration and development opportunities within Sarawak and the whole of Malaysia.
Under the agreement, MEO will provide technical and evaluation assistance to Brooke, and in return Brooke will fund the evaluation activities and the exploration component of the joint bids.
At this initial stage, under the agreement, Brooke will have a 75% participating interest and MEO a 25% participating interest.
Brooke will bring Malaysian content to MEO having access to local fabrication and construction capability, for both onshore and offshore facilities.
The parties have also agreed to develop and operate oil and gas prospects to the mutual benefit of their stakeholders, shareholders, local community and people of Sarawak, said MEO in a statement.
Last week, Mosman’s attempt to takeover 100% of MEO was unsuccessful, leaving the company with only 2.047% of MEO shares. At the time when Mosman announced its intention to take over MEO in December 2014, MEO’s share price fluctuated between AU$0.025 and $0.012, and closed at $0.014 on 23 February.
In May, the firm farmed out 30% stake in the exploration permit WA-488-P offshore Australia to SGX-listed, Rex International Holding, while it retained the remaining 70% interest.
Image: Malaysian flag
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