artemis, what its worth !!, page-11

hi CC

As of now MEO believes Artemis is worth $2+ @ 70% interest & 9.5 Tcf GIIP or $850m. For KAR, Southern Cross Equities had used 32-33% success rate & my calc's for MEO come close to 29-30%. Thats what nearology can do alongwith a robust data model.

U r absolutely right, once the 50% farmout is negotiated, then the equation could change & will come down to more then simply sharing cost of drilling 1 well + ~US$8m seismic costs. If the 1st well is good, then there may b a follow-up well.

IMO, it will all come down to what 1 of the 12 operators in the data-room wants after the 14th of Aug. If they like the dataset then it could well b game-on & my gut-feel is still with the neighbours & all the hype abt WPL's need for more gas, should justify this theory. The farmout, IMO should also have a +ve impact on CUE's SP, how much, we dont know yet.

Will have to see how it all goes. Note that they dont drill until 2010, so profit taking is likely by late Aug-Sept for those who got in early. So for now, its all about the farmout.

cheers