cash will be around 10cps pre h-3 spud

MEO's estimated expenditure for Mar qtr is $24mil which will take cash levels down to $60mil or 11cps by 31-03-2012.

Since H-3 spud is not until end of June qtr, I suppose another few $mil in Admin etc can be subtracted from that.

With cash at 10cps at spud, I reckon MEO sp would be doing very well to achieve 25c in the pre spud runnup.

The cash is being spent on seismic which is good and some deals should emerge down the track, however I think that will be later in 2H 2012.

Unfortunately, the market does not put much value on permits until they're farmed out and or a rig is booked.

I've lightened up a fair bit lately and looking for a lower re entry in the next few months.