eni farms in to heron, page-28

I think MEO is more for speculation in a bid that we could produce something viable in the future than a long standing invesment on energy prices appreciations. People in this stock have to admit the very risk that MEO may fail to achieve anything in the end. But having said that, the cash backing below 20cps provides some comfort.

I am actually happy that Eni will pay for the drilling cost in return for some upside, because I know the success rate of drilling is typically lower than my winning rate of playing BlackJack in casino. Such risk shifting essentially creates value for shareholders. Kind of like you originally comitted 100m for a lotteray game, then your friend come in half way and offer you 90m in return for 90% of the profit if you win. An risk averse investor will welcome the latter case.

Well, let's just prepare for the worst while hope for the best.