meo - free-carried 1.5 tcf out of the blue

Hi all,

MEO really does get better and better.

In all my year's of investing, i have found that it is often a surprise development out of left field which causes companies to significantly re-rate. It is this sudden, unexpected event which often stuns potential investors and the wider investment community.

Well this event has occurred.

This week's announcement by Woodside Petroleum and CUE energy is a tremendous development for MEO.

Woodside Petroleum (WPL), the multi-billion dollar company, had previously been planning to drill a 4 TCF gas well in partnership with CUE called Caterina in the Carnavon Basin offshore WA. As has already been discussed in this forum, Woodside have dramatically changed their plans and have decided to drill Banambu deep instead.

In 1998 WPL drilled an adjacent prospect, called Banambu-1. They have since re-processed extensive seismic studies of the region and have collated the results of Banambu-1, subsequently deciding to abandon their plans to drill the 4 TCF gas prospect of Caterina and go full steam ahead with plans to drill Banambu in the next quarter.

In deciding to drill so close to their previous Banambu-1, WPL must see significant potential in this prospect and must deem it to have a significantly higher chance of success. Their decision would also have been influenced by Banambu's proximity to existing production facilities - as we know, WPL are after more gas for LNG.

For those that don't know, Banambu deep is a 1.5 TCF gas target offshore Western Australia within the permit WA-389P in the Carnavon Basin. What the broader investment community will soon realise is that approximately half of Banambu deep runs through MEO's permit WA-361P.

As proactive investors correctly stated during the week, "this could de-risk MEO’s Carnarvon Basin permit."

MEO are currently planning to buy existing 3D seismic over WA-360P and 323 square km of the recently shot Zues 3D survey over WA-361P to mature several leads.

As it stands, MEO already have several leads on these permits, including Heracles 2 TCF and Maxwell 1 TCF gas.

It is no wonder that Sky new Business promoted MEO as having "huge potential" and a price target of 44c to 60c in the short term!

It is actually astounding the level of drilling activity coming up this year:

1) WPL to drill 1.5 tcf Banambu deep in the 2nd Quarter this year
2) ENI to drill 5 tcf Heron-3 in the 3rd Quarter of this year
3) Drilling Gulf of Thailand well in the 3rd Quarter of this year
4) Drilling of Northern Sumatra Basin (Seruway) in 4th Quarter this year

In addition to exposure to 4 high impact drills this year, MEO shareholders have the biggest asset of them all - Tassie Shoal - which is a precious commodity and is highly sought after as we know.

I haven't even begun to mention Blackwood, Marina, Sth Madura....

Is it any wonder why the stock is being aggressively capped and accumulated?

Finally big investors are beginning to see what i saw 2-3 months ago. There are seeing a once in a lifetime opportunity to make big money from a stock which has massive exposure to multiple high impact wells in the immediate short term, has the invaluable Tassie Shoal, has top notch management and has the luxurious safety of approximately $83million dollars of cash in the bank...all for a market cap of $140mill

We should consider ourselves very lucky to be on this one...