to buy or not to buy, page-14

Kivi,

Young Ivor says that assuming 12Tcf and $4/bboe the unrisked value of MEO's share at Artemis is $4.56/share.

http://www.meoaustralia.com.au/content/Document/MEO%20Artemis%20Outline%20July%202010.pdf

Ivor, much like myself got into KAR at sub $2 levels, in fact I first entered KAR before the late Ken of TGH.

The current share price is a whisker under $0.56, and the company has almost $0.15/share in uncommitted cash, so the enterprise value per share is $0.41. It will take a number of wells to prove up 12Tcf of gas, however given MEO's 3-well carry, the well understood geology (much better than Poseidon, ie shallower and with better porosities and permeabilities), the upside is attractive.

In a best case scenario, Artemis could deliver MEO share holders a 10-bagger. (we don't use this phrase anywhere near as much post-GFC, but this instance justifies it.

This simplistic analysis obviously ignores up to 5Tcf of already discovered at NT/P68 and the monetisation value of assets (TSMP) that have the potential to convert a liability (CO2) into an asset (methanol).

Gee, I wonder if I will be holding through this drilling campaign? At $1+/share, I would hedge my bets, but at $0.56 selling out is like throwing away your ticket before the race has even commenced.