In their recent presentation, MEO ascribed a risked value for Atermis alone of $1.17.
Intuitively, the risked value takes into account the prospect of failure (not finding gas at Atermis) and provides a value for that asset at a given point in time - in this case, it is post a 50% farm out but before drilling (i.e. before we know whether it is successful or not).
Therefore, based on this risked valuation, could we not rightly expect MEO to head towards this risked value? Particularly keeping in mind that the $1.17 figure does not include any of the company's other assets.
Talk of a successful drill result at Atermis already being factored into the share price is off the mark imo.
This is not an up-ramping post - it's an unemotional and considered assessment of information the company has released to the ASX.
MEO Price at posting:
56.0¢ Sentiment: Buy Disclosure: Held
