Back in mid March I posted a blog about Moby Oil & Gas (MOG) holding a minority holding in a potentially very lucrative exploration block off shore of WA, with MEO Australia being the operator and intention of them farming out a portion of their 70% interest to a large foreign oil company.
As it turned out, there were a few complications with negotiations and the share price collapsed after hitting a high of 19c as a result.
This morning MEO Australia surprised the market with the announcement of Brazilian oil major Petrobras signing a binding farm-in agreement.
Strangely though Moby Oil & Gas, and MEO Australia were both hit with a wave of selling after an initial strong opening. The above chart does show some common sense returning in the afternoon though, with Moby Oil & Gas closing at 19c and a long lower wick being left on today's candle, which can be seen as a bullish indicator.
The fundamentals are strong here and we could see this project transform Moby Oil & Gas. This is a buy and hold in my opinion and if the imbeciles want to sell, then let them!
MOG Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
