agm, page-6

Some points that may be of interest.
Please do not rely on accuracy being 100% as much of this from memory.

History.
Jurgen answered a question from the floor on what happened at Gurame (subtitled, a series of unfortunate events). Late on seismic set them against the clock re committment well, had the wrong rig to drill the deep Abu Horst (where a farm-out would have been possible), rig able to only drill a shallower target, decided Gurame had the highest CoS (but could not get a farm-in partner).
GoT farm-in "diverted from our business model", in that they had to pay for seismic and drilling (normally access acreage cheap and get others to pay). Farm-in decision was probably made easier given the relatively generous cash position at that time. Now looking to farm down to fund 2014 drilling.
Seraway: seeking farm-out partner to drill 2014. No farm-out, no drill (relinquish?).

Present.
ENI recently reported ES flowed 30mmcfg/d. On ENI pre-drill estimates (ie more gas deeper), Blackwood-2 (on success) enough gas to fuel TS methanol ie close to 2tcf gas vs MEO assumption less than 1tcf (based on MEO view small chance of deeper gas). Up to 65 day well (including testing), so Blackwood results won't be known before Heron decision by ENI 18th Dec. ENI have option to acquire further 25% equity in Heron and /or Blackwood.
WA-454-P jv with Origin Energy. 1st tranche of payment just received. MEO not covered for any production testing.
WA-488-P Beehive prospect (MEO 100%). 100mmbbl to 2bnbbl potential; farm-out in progress, with some good interest. Cash and carry.
Seraway PSC Juaro 200mmbbl oil prospect. MEO really like this prospect. Farm-out in progress. Hopeful. If no farm-out, relinquish permit.
AC/P51 Ramble On prospect. Farm-out in progress, drill 14/15?
G2/48 has multiple leads prospective for oil. MEO 50% looking to farm-out and get cash and carry for 2014 commitment well.
Can't guarantee any drilling at this stage for 2014, but trying hard.
Malaysian office could provide opportunities to generate a cash flow producing asset for the company at better value than they can see in Australia (easy to say, hard to execute). So MEO will persevere with the strategy in Asia.


Peter Stickland: head of exploration
Strategy: Minimize outlay of shareholder funds whilst generating quality new prospects.
Aim: Look to build diverse portfolio of 1-3 high impact drilling opporrtunities per year.
GoT. Under explored, under valued. Oil prospective, cheap wells ($5-10m).
First well did not reach its target objective due to operational problems, but helped enhance the acreage prospectivity. Farm-out ahead of 2014 commitment well.
Ashmore Cartier: Oil and liquids rich gas. High equity 100% acquired for $270k. Area held back by lack of understanding of geology - difficult. MEO used technology and new concepts to try and unravel trap mechanisms mysteries. If can be overcome, big upside.
WA-454-P secured at gazettal phase so modest cash outlay. In 2 years since gazettal managed to secure farm-out to Origin - great result.
WA-488-P Beehive prospect has analogue with giant Tenzig (?) field in Caspian Sea. Work up and farm-out, for drilling in 2015?

Rob Zammit: Tassie Shoal
TSMP intention is to be the best alternative for the various producers' upstream resource.
MEO TSMP1&2 would provide $1.2bn per year national export revenue.
Fed Govt strong on "use it or lose it" on assets.
TSLNG at least $2-4bn cheaper for Greater Sunrise vs alternative developments - "the best economic alternative".
So they see the TSMP timing is good from a big picture perspective.
By 2015, 3 potential gas sources will have been appraised, analysed and time enough for negotiations to reach a conclusion.
If ENI are right on Blackwood-2 having deeper gas and therefore potentially up to 1.5tcf, then that might be enough for midstream jv partner to press Go button earlier?
The partnership Rob zammit has developed with the proposed Asian partner has provided financial backing /security to enable a gas sales agreement to be put to a third party.
Clearly, much work on TS has been achieved - the apprasial program of various companies in next q's will be mission critical. Obviously the TS project would be of enormous value to MEO and the next 6-12 months will tell the tale.

Came away thinking there remains very good optionality in MEO at 7c. Much can go right - of course not all of it will - and then there is the goliath option of TS. And now not that long until judgement day (relatively speaking!).