Ann: Trading Halt , page-11

Analysts view of valuation. FYI

Implied valuation of Artemis prospect to MOG - Based on MEO share price trading history
comments
MEO share price (pre-Artemis announcement) 0.179 A$/share 6 month VWAP prior to 1st announcement of Artemis prospect (19th March 2009)
Shares on Issue at the time 417.3 million
MEO market capitalisation 74.7 A$million
Net cash position 21.8 A$million Post Zeus-1 well
MEO enterprise value 52.9 A$million

Current share price 0.435 A$/share Closing share price as a 14th December 2009
Shares on issue 477.2 million Post capital raising
MEO market capitalisation 207.6 A$million
Estimated net cash position 41.6 A$million Cash from September 2009 quarterly cash flow report + A$26m from capital raising
Enterprise value 166.0 A$million

Increase in MEO enterprise value 113.1 A$million Enterprise value increase in MEO that can be attributed to Artemis prospect
Interest in Artemis well 20% Post proposed farmout
Implied valuation of Artemis well (100%) 565.4 A$million At 100% level

MOG interest in Artemis well 15% MOG is carried for the entire cost of the Artemis well
Implied valuation of Artemis to MOG 84.8 A$million 15% of the 100% value for Artemis

Value attributed to Cornea 0.0 A$million
Value attributed to Braveheart 0.0 A$million

Assumed cash balance post Cornea/Braveheart 0.0 A$million

Implied MOG market capitalisation 84.8 A$million

MOG shares on issue (post capital raising) 310.9 million

Implied MOG market capitalisation 0.273 A$/share

Current MOG share price 0.175 A$/share

Movement to reach implied valuation 55.9%

MEO Valuation Metrics
Artemis Prospect

Gas in Place 20 Tcf
Recovery Factor 60%
Recoverable Volume 12 Tcf
Probability of Success (POS) 32%
Risked Volume 3.84 Tcf

Value / mcf 0.5 US$/mcf

Risked Value 1920.0 US$million

Exchange Rate 0.90 A$/US$

Risked Value 2133.3 A$million

MEO Interest 20%

Value to MEO 426.7 A$million

MEO Shares on Issue 477.2 million

Value to MEO 0.89 A$/share

MOG Interest 15%

Value to MOG 320.0 A$million

MOG Shares on Issue 310.9 million

Value to MOG 1.03 A$/share