MEO Australia has signed an agreement with Brooke Dockyard & Engineering Work Corporation which will see the pair bid on oil and gas exploration and development opportunities within Malaysia.

Under the agreement, MEO will provide technical assistance and opportunity evaluation assistance to Sarawak-based Brooke.

In return, Brooke will fund the evaluation activities and the exploration component of joint bids for successfully screened opportunities that satisfy the criteria of both companies.

For the initial opportunity to be considered under the agreement, Brooke will have a 75 per cent participating interest and MEO a 25 per cent participating interest.

MEO will be free carried for evaluation activities and exploration of any captured opportunities.

MEO said Brooke would bring strong local Malaysian content to MEO having access to local fabrication and construction capability, for both onshore and offshore facilities.

“The parties have also agreed to work together in a suitable framework to develop and operate oil and gas prospects to the mutual benefit of their stakeholders, shareholders, local community and people of Sarawak,” the company added.

The agreement comes in the wake of Mosman Oil and Gas’s failed hostile all-scrip takeover attempt for the junior explorer.

The long running battle for control of Melbourne-based MEO came to an end earlier this week after Mosman advised it had received acceptances for only 2 per cent of MEO shares.

MEO, which has projects in Australia’s Bonaparte Basin and New Zealand’s Taranaki Basin, recently made a play into Cuba, gaining entry into the onshore North Cuba Basin. The deal makes MEO the only ASX-listed company with Cuban energy exposure.

MEO shares were steady at 1.6 cents.

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