what are we opening monday if at all?, page-21

True HR - keep vigilant ....... in more ways than one.

For newbies I care for the safety and timing of your investment strategy in MEO. Of course, you will make your own decisions, just be mindful of them, or others will take advantage of you.

MEO has been on a rollercoaster ride for some time now, which has led to some pretty frustrated SHs. Mrmoshe's detective work has revealed a reference to Petrobas that they have now applied to ASIC to reserve the name PETROBRAS AUSTRALIA OIL & GAS PTY LTD. Petrobras is one of the names bandied about in this forum as a potential farminee to the Artemis prospect in the NWS.

So what has changed for MEO over the weekend?

Nothing at all.

The preferred farminee, a major P&E Company, was selected mid Oct. Owing to a variety of reasons the name of the farminee has been well kept under wraps since then and the identity, along with the farmin details, has been the centre of discussion in the MEO forum since then.

This has presented a goldmine for those that play the market and MEO's chart shows this. MEO has been a trader's favourite and they have commented as such in this forum.

The fundamentals of MEO have not changed. Whoever the farminee is managements has assured us that it is a major o'seas Co. who are making their first entry into Oz. The farminee will want this to be a successful and long term enterprise.

MEO are the operator on WA-360-P with a projected 12Tcf mean gas in place at an estimated 32% success rate. MEO are also the operator (35%) of WA-361-P where they have the West Zeus lead and a newly identified lead notified in their recent 2Q report. Note the West Zeus lead is adjacent to WA-360-P (my thoughts only - extension of Artemis)

They also have their prize project which is a government approved floating Methanol and LNG plant to be developed at Tassie Shoals. MEO believes that they have sufficient CO2 challenged gas at Blackwood (NT/P68) to service one of the two proposed Methanol plants. They are also hopeful there is sufficient gas in Heron, located in the same permit.

There are also other stranded gas fields in the area - one of which is Evans Shoal, where Tassie Shoal is located. Santos, the operator of the Evans Shoal permit, was looking to offload 2009.

So, if you are new to this stock, the farminee information which has been posted, and discussed, this weekend is yet again fodder for 'mug punters'. Nothing against Mrmoshe but that is what traders will make of it. Long term MEOmites have seen this scenario again and again. The perfect ramp for the stock so that come open on Monday morning the traders will be in like flint.

If there is no TH Monday morning I feel the SP will rise, even with the outside -ve influences ATM. All the capping which has been holding the VWAP at 45c over the last few weeks will fly out of the window.

What will happen then - the price will probably fall again - especially if there isn't an ann - just like the phantom ann in Sept. To what degree nobody knows, it is all part of the trading game. The reasons for the fall will all be legitimate but profits will be the main game.

This is the reason for the vigilance. If you are new to the stock and buy on the up without first doing your research it will be easy to be fooled by a sudden drop. Don't fall for this as if you sell at a loss your money will be gone.

The reason for the hype ATM is the identity of MEO's farminee. This has not yet been announced. A joint announcement will be made when the final terms are executed. Both companies are bound by a confidentiality agreement and nothing less than an announcement by either or both the companies is just rumour.

In my opinion, for what it is worth, present and future MEOmites are investing in a company with a positive future for the long term. I believe they are currently under priced. Their true value will be decided by the value of the deal and ultimately, as always, by the market itself.

I am not saying that an announcement is not imminent - but until we do have the announcement, don't just invest on rumour alone or the sharks will fleece you. Just be cautious of those sudden price fluctuations and be on the positive side of your trades, especially in the short term.

Of course everyone can do as they please and the SP may even go down because all the above is just my opinion:>))