D (FOR DISCOVERY) DAY ARRIVE; ALL EYES ON ARTEMIS.
oil and gas explorer MEO australia and its partners in the artemis exploration off western australia are likely to learn today wheather their highly anticipated well has discovered gas. the artemis well, which pre-drilling estimates susggested could host 12 trillion cubic feet of gas, is schedualed to reach the top of the targeted reservoir some time today. a successful discovery has the potential to be a "company maker" for the australian jounior miners with intrest in the well, given the size of the artemis target.
brazilian oil and gas giant, petrobras is covering the entire cost of the well-up to $41 million- to earn a 50% intrest in the license. Meo will retain 25%, CUE 15% MOG 10%. Pre drilling estimates predicted a 32% chance of success. just where MEO shares will wind up if the well is a success is anyones guess, but it could be several times higher than its friday close of 43 cents.
a discovery could also benifit from its proximity to the gas fields supporting 3 hungry LNG projects.
the target sits along the same geological trend as Woodsides Pluto fields and Cheverons Wheatstone discovery, both of whice are eager to source more gas for LNG expansion.
In addition, artemis is artemis is nearseveral gas fields that feed into the woodside-operated North-West shelf project, forcast to begin falling short of gas from about 2020.
Of course, all that proximity will amount to little if the result at artemis is dry.
Last month MEO raised $32.6 million at 52 cents a share from mostly North American and European investors, taking advantage of a share price that had doubled since july and giving the campany a $100 million cash backing buffer in the event of a dissapointing result at artemis.
MEO Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
