It is a farminee announcement, a binding agreement has been reached but it is subject to approvals which means that the farminee's identity still needs to be kept under raps. I don't think we can expect a major O/S's company to bring their board meeting forward to suit us, as this venture will probably be on of many on their agenda.
I believe the CEO has said all that he can given the circumstances. A bad announcement would have been the negotiations have broken down.
The positive, I feel, is that it is a MAJOR international petroleum and energy company. Hopefully this means that a JV is on the cards for the realisation of all MEO's goals.
MEO are will be looking to a fresh start with an O/S company. In choosing a newbie they will be keeping away from involvement in the foray between Chevron, WPL and others. This is also an indication why the talks have taken such a lomg time.
MEO will keep a share of their interests in Carnarvon. Any gas there will be sold to the warring factions so could be quite valuable.
I believe they will also have a partner in TS. This is indicated in today's statement: 'Additional analysis and discussion was required with respect to the potential implementation of an integrated LNG project in the event of exploration success'.
I am not sure whether 'exploration success' refers to Artemis or the NT/P68 prospects. Will have to wait for that one. It must be remembered that MEO concurrently have been looking for a partner in both WA-360-P and NT/P68.
On the negative side, at present, there is only the possibility that approvals are not given and the artemis drill deadline is not met. Success at artemis is still down the track. I am pretty sure MEO/newbie will not be just relying on Artemis for a way forward. The newbie will want something more to present at their bi boardroom table.
I am sure mgmnt are aware of the 31st Dec deadline. There is quite a lot riding on that date, for a lot of pple. If the team pulls this off I believe it will still be a nice Christmas present for us all.
In the mean time I think your VWAP of 55c will be the norm until then HR1 - give or take a few pushes by the short termers.
And jak/hr1 thanks for reminding me:
My opinions are from my own research only. I form opinions and make my own decisions accordingly. I advise all people to do the same research and come to your own decisions when trading:)
MEO Price at posting:
55.0¢ Sentiment: LT Buy Disclosure: Held
