Just got home from a hot day in the sun, and was quit enjoying reading this thread until people decided to stir instead. It would be great to get back on topic, and use our powers for good.
I take peoples point that this could just be a hedge against a dry well, but with $70M in the bank, and another farm in coming up(be it just for a free carry, and maybe some cash)it still doesn't add up. I mean, it's not like we are paying for any drilling in the near future. The last C/R was to make sure we had cash to drill Artemis, if the farm out want south. We are free carry on 3 wells now. It couldn't be to have money to develop the wells because if proven, the share price would be way north of here and as J/H has hinted in the open brief, we may sell down to Petrobas in the case.
This has to have something to do with an opportunity that has come up(IMO)
The first thing that comes to mind is Evens shoal. Magellan have to pay Santos $85m in a matter of weeks. If we get a % of 8tcf from Evans shoal, then the Tassies shoal methanol plant is sorted.
Caldita and Barossa are another that come to mind but may be out of our price range.
As Rhodes2ritches has pointed out, there is also permits around AC/P50 that they brought up at the AGM.
My point being that this C/R is not just so they can run their business, this is for some thing.
Petrobras buying in would be huge. Could we get that lucky.
MEO Price at posting:
58.5¢ Sentiment: LT Buy Disclosure: Held
