March 4 (Reuters) - Melbana Energy Ltd MAY.AX :
* SANTOS ADVISED IT HAS NOT CONCLUDED FARM OUT OF PARTICIPATING INTEREST IN BEEHIVE PROSPECT TO A THIRD PARTY IN TIME PERMITTED
* SANTOS' OPTION TO ACQUIRE AN 80% IN WA-488-P THEREFORE EXPIRES UNEXERCISED
* CO NOW HAS 100% UNENCUMBERED INTEREST IN PERMIT
* IS IN DISCUSSIONS WITH POTENTIAL PARTNERS TO JOIN IT IN DRILLING AN EXPLORATION WELL IN BEEHIVE PROSPECT