doesn't make sense, page-14

Hi Pocko,

LongT asked the question and your answer in conjunction with Cbro's ...answers the query more than adequately...especially with Advents Pooled Development Fund Status.

However I will disagree with you on one point...not to make a nuisance of myself but merely to point out that WA has a far greater shortage of Gas than NSW and the wholesale industry is paying circa $6 per Gj and the commercial users are paying anywhere between $7-12Gj.

Commercial users meaning the Alcoas'/Fotescues'/Mid west Iron producers of the Wes tand the list goes on and on...including your average mum and dad in WA.

There is a massive shortage and the Domgas Alliance in WA has been pressing the WA state government to alleviate the situation by forcing some of the NWS Gas producers to pipe some of the Gas (circa 10%) towards the resi/commercial users at a rate similar to that being supplied to offshore customers..less than $4Gj.

WA represents the most luctrative onshore marketplace in Australia...with expected shortages for the next decade.

I have noticed recently that Chevron is making manouvres to fast track some diversion of their NWS gas supplies to the WA market by 2013...very lucrative indeed.

If the MEO consortium is smart and upon discovery of commercial quantities of Gas in WA 360P they too could capitalise on the local WA industry market needs for a good 10 years...however they would need to act very quickly to lock in contracts and the Gas would have to be "Sweet".

for further information on this topic you should spend a few days research starting with :

www.domgas.com.au

There are a lot of factors in comparing MEO to others...your bottom line is that MMR is intially targetting a 4.3TCF potential P50 reserve 50Km off Newcastle only because initially the residents off Avoca Beach took a dislike to a Rig being visible off their beach and possibly contaminating their shores.

That is one of the major differences between WA360P and PEP11....the proximity to major population centres and the possibilty of Oil rig disasters looming large in these centres....I could go on and on about this but most of know the Cougar (CXY) disaster with a sniff of benzene pervading the water table in nearby farms and onsite...it cuased a virtual shutdown in the CSG industry in QLD very recently...until the Fed government stepped in to override the QLD mines department...due to the Multi billions already invested in that sector in QLD...but that's another story.

So what I am trying to say here is that regardless of all the competitors MC's and PDF offsets etc,etc ...

1.

MEO ,et al ,are ready to spud Artemis 1 within the next (circa) 10 days .

2.
They have already locked in a Major Global top 5 O&G player (Petrobras)...that have already paid MEO handsomely and underpinned MEO's future operations.

3.

Do not have to worry about CR's by JV partners to carry through the spud....you must note that both Advent and BPH ( going into a trade suspension for 3 weeks)are both looking to CR ASAP to get their PEP 11 intial spud happening

4.

MEO is a far more liquid stock with a lot more shareholders than the other previously mentioned Co's put together...it's a liquid stock with less chance of a massive loss and a better chance of a bigger sustainable upside.

5.

That's probably why both you and I hold MEO at this stage.


By the way IAM was spot on with his analysis of the ST trades ..thats what has made MEO sustainablr through all it's ups and downs....you could make money on short term trades all along the way from mid 2009 ...whether you were shorting or trading 2-3 times per day.

It always paid if you traded or held correctly.

Mitta and lots of others are fully aware of this...I have traded it myself...that's what you do in the Sharemarket these days ..you trade...to preserve capital ...the are too many hurdles out there in the stockmarket and there is no such thing as a level playing field ..it's more like a minefield...hence the need for "Steel Undies" unless less want your unmentionables blown away..

Enough from ..back to my Sov Plonk

Good to see you are out the East Coast "Green Belt" IAM ..clears the mind!

Cheers ,

HR

No advice given or intended ...strictly my views above and obviously influenced by a glass or two of my favourite wine...it's your money ..spend it wisely..make a buck or two along the way, if you must...disregard any speling or Grandma mistakes..I've had a drink.