value of heron and blackwood?, page-20

Hi blurrt

I've also been watching the progress of those two.

1. The Evans Shoal transaction has been taking a long time and I think the stumbling block for Magellan is the JV partners. Magellan (MGN/MPET) say they have the financial backing but, with government approvals needed for land based plants, the whole exercise is in the air - especially with all the NT chatter about FLNG lately.

Perhaps the JV partners want more certainty before welcoming Magellan. It will go down to the wire.

* MPETs * SP (US) has drifted back to 2.40 after reaching the mid 3.00s on a couple of pumps this year. It looks as if some SHs have been making a profit out of the exercise. It has flattened out again now, like MEO, waiting for an announcement.

I see two scenarios which would benefit MEO:

1 The deal goes through and MEO either buys into the JV or purchases a gas feed.

2 The deal falls through and MEO approaches STO with a deal of their own.

The alternative is that MEO misses out if the deal goes through and MGN want all the gas for a Darwin methanol plant.

It will be interesting to see if STO grant another extension if MGN don't meet the May 31 deadline.

2. * The Caldita/Barossa sale * is still a bit of a mystery. I don't think the Oz government will look too kindly on the restrictions Conoco are putting on the sale. If they want the gas for their own plant (which they share with STO) I don't see why they don't develop the field (which they also share with STO) and build the pipe-line themselves. It reminds me of a saying about cake.

MEO wouldn't be able to afford ConocoPhillips' 60% share but a feed would be helpful.

With everything up in the air in the region of stranded gas with MEO having approvals for the TSLNG and TSMP it is no wonder the company is hanging on to the cash ATM until the fog clears. I am sure MEO is involved in a lot of activity behind the scenes.

Just my observations.

#:>))