I don't think a lot needs to be read into the paper loss due to FX variations.
In the O&G industry most payments are paid in US$ and MEO are probably keeping an account in US$ for such payments. Even MEO's 5% acquisition from MOG was paid in US$.
If MEO were transferring US$ payments backwards and forwards through the money market then, perhaps, they could be accused of speculating on the exchange rates.
Because some funds are being held in US denomination for future deals the consequences of FX variations will need to be show in the financial reports.
The only way they will lose out is if they need to convert the money to pay for Oz transactions but, by then, who knows what the FX will be.
But this is just the way I see it.
#:>))
MEO Price at posting:
21.5¢ Sentiment: LT Buy Disclosure: Held
