meo executes binding farm-in agreement!!, page-37

Wipz, not sure what you are seeing here and really dont think you know what you are talking about. We always know MEO would retain 20%. First drill is capped at US$41m BUT MEO will get cash bonus of US$31.5 million + past costs of approximately US$7.5 million. We were just expecting past costs reimbursement and free
carry of wells. The cash bonuses are a nice surprise.

We have $40+M in bank, plus bonus of 31.5m + 7.5m with or without discovery!! All performance based Wipz??? Even if 1st well is capped at 41M and lets say MEO, CUE and MOG have to cough up 20M (6.8M MEO) we would still be $32.2 Million better off and also have the current 40M in the bank (total 72.2M) after first well. If that was successful then add another US$31.5m bonus = circa total $103M and the prospect of 20% revenue of 12TCF of gas.

So without taking into account the gas and partially funding the first well if the cost goes over 41M this deal is still worth 21c a share to MEO, add the gas then we are into $ and not cents.

Now how is this a bad deal Wipz? are you implying that MEO did not raise enough capital to commit to drill first well if you are saying 41m is no where near enough? Can you in your wisdom tell us what it will cost. Maybe you can then also tell MEO that they don't know what they are talking about and should have raised much more money and then ask them to call you for the correct costing. Thanks.

Look foward to a detailed explaination of your analysis.