patience is the game, page-2

Rob,

Firstly thanks to all those who've posted their thoughts on the AGM.

Now then, think again, were there any subtle hints dropped around about the farminee (region-wise perhaps).

I've been trolling the net for the last few days, websites for some majors Russians (Gazprom), Indians (ONGC-videsh, Reliance), Japanes (Mitsui), Koreans (KOGAS), French (GDF Suez), Chinese (CNOOC although they've drilled 3 wells recently using the songa venus, so rule them out)!!

Others I thought off with LNG expertise, Repsol (Spain), Petrobras (Brazil), Petronas (Malaysian), Tullow, Talisman (Canadian already with Karoon in the Timor sea) & a rank oursider called BG !!

Does anyone who attended today, remember any subtle clues dropped in passing, since that update said a 'newbie to Oz' (& I went GDF Suez bingo, as they r the latest to arrive on our shores, picking up Santos's acreage & promising to develop an FLNG project in the Bonaparte basin & werewaiting for an FIRB approval, which should have come by now). So please think agan, any mention of the owners of Man-U or some other sporting team!! I am totally blank, since its not the 2 big neighbours or Conoco, so someone with cash like Reliance India who are sitting on a US$6 billion cash reserve.

IMO, to an extent Jurgen & his board are right by not disclosing the name. We all have been burnt on Nexus last Oct when Mitsui pulled out of a US$300m farm-out deal & the shares tanked bigtime, a did KAR when BG pulled out in Oct 2005. So, he is not playing hide & seek, just making sure he has the deal locked in!! I had a tight stop on so am out for now, but will keep an eye on this.

As for the FIRB, the threshold was changed 2 months back from A$100m to A$219m. Had MEO's mkt cap been any lower, they would b a sitting duck for a complete take-over, so the SP is above that crucial $219m mark that needs FIRB approval, rather then not show up on the radar. This threshold was changed as the FIRB's got sick of the overseas cashed up players buying into the iron ore/coal/energy sector & is in a way good for companies with HUGE DEBT's or CAPEX hungry projects. Aquila (AQA) got its FIRB approval & looks at its SP fly today!!

MEO's intention has always been to develop Tassie Shoals as NW-Shelf is the land of super majors, so they've cooked Artemis & served it in the dataroom, only a matter of time for the guest to arrive. I hope the deal is good & by golly the overall UGIIP is enough to make someone with deeper pockets throw more cash & outsmart the Woodies & Chevies!!

As for the cap-raising, nothing wrong here, apart from KAR (177.1m), MEO are the next with 477.2m shares. Whats more important is the cash on hand, $40.6 million!! Which gives them an Enterprise value of $198 million.

As for the resources, I've always said back in June-July that there was more then 9 tcf here & I am glad their in-house research backs this up.

So where to from here!! I guess, uncertainity will rein for now, since the mkt was after a farminee name, which we still dont know.

The fundamentals are still there, they have the money, they've marketed the Artemis prospect well enough to the right buyer. I guess, if we've waited this long, a few more weeks wouldn't hurt. Lets hope the deal is good.

Another thing, MEO raised $27m b'coz an offshore well can cost between $20-60 million, so the bankers (ECB & Morgan Stanley) must have believed in this story. Lets hope when they drill A-1 nxt year, it comes up good.

cheers