Good to see the action heating up & the chart pointing northwards. Think the chartists will b kept flatout, for another 43 hours of trading, b4 the 30th Sept deadline.
OrgAcc, that gap u've mentioned was mainly due to a drop in SP due a technical issue whilst testing Heron/Blkwood (the well reservoir had collapsed frm memory during testing, blame geology for it & the SP copped a flogging that day). The second drop in Feb was due to Zeus encountering water. This was a high risk well & could have gone either way. Sadly it didnt come off for them. So MEO's SP languished all the way to 7.5c.
This time around their exposure to the elements is less risky, mainly b'coz they won't b the operator & want a bigger player to run the show, given the nearology & the desire to find more raw gas. In short, with higher possibilty of success, MEO will b far more derisked to mkt volatility.
Remember that Woodside already have completed 68% of its Pluto plant, which will come online in Q3-Q4 of 2010, such is the hectic pace. The need for now, is to lock in sufficient future raw gas reserves, for processing of LNG.
IMO, with the dust starting to settle on Gorgon with Chev, Shell, Exxon; WPL may b setting themselves up to make a major ann'mnt of their own for LNG deals etc, afterall they are the nation's leading O&G explorer & have set the benchmark high for the others to follow suit. Time for Don Volte to have his day. WPL are keen to talk with suppliers & are already doing so with Apache & Hess. The media release is on their website already.
On the other hand, this competition between WPL & Chevron, bodes well for MEO. I hope the eventual farminee, is a bigger player with deeper pockets.
The deals were already handed in earlier as quoted b4 by MEO & they could simply b giving finishing touches to some clauses. Looks like the mkt can smell something cooking.
IMO, the current 4-5 month steady rise, post-GFC & the upcoming farmout couldn't have come at a better time for MEO.
About time this kitty roared !!
MEO Price at posting:
71.5¢ Sentiment: Hold Disclosure: Held
