Not much from memory has been posted about the following but i will now share why i have decided to really back meo in over the last period re mopping up shares as late as last week...
At the last ts update meo advised the market that:
"Discussions with interested parties on broader strategic partnerships across the value chain including the acquisition of equity in TSMP1 are continuing in parallel. In this regard, MEO is developing a commercial relationship with an Asian industry participant on a non-exclusive basis for the purpose of developing TSMP1. The Asian industry participant is a multinational corporation with broad business interests including in upstream E&P, downstream chemicals and international trading businesses and is considering taking a majority interest in, and assuming operatorship of, the TSMP1 midstream development."
Imho, the strategic alliance partner for Tassie Shoals is SK E&S! If this is correct then this will be huge for meo!
SK E&S states that their:
"main businesses include exporting, importing, third-country trading, and the sale of chemical products in Korea. These include aromatics like SM* and BTX*, chemical fiber materials like MEG* and PTA*, METHANOL and solvents, fertilizers like urea, and raw materials for our PU* and PET".
If you check out S&K's website you will see their flagship vertical is also upstream e&p. this all marries up nicely with meo's description of the strategic partner's business model...
SK E&S is the conglomerate that paid over half a billion dollars about 9 months ago for 49.5% interest in nt/p 61 and nt/p 69. Now both these permits sit alongside Evans Shoal and are exceptionally close to Tassie Shoal. Both permits have multiple production tested wells with very high commercial flow rates and co2 as high as 16% which makes both permits perfect candidates for methanol.
The really exciting news is that Nt/p69 has a 3 well campaign scheduled to commence next month with this being a nine month back to back drilling campaign which allows 90 days per well includingproduction testing. the operator is conocophillips who even have a detailed fact sheet about the drilling campaign for nt/p69 on their website:
Imho, the conocophillips darwin lng plant will no longer come into play due to massive cost risks, existing capacity issues, tiime to market / approval issues and high co2!! Besides the commerial savings offered by the ts model are only further amplified by the proximity of nt/p 69 and nt/p 61...
Once the nt/p69 x 3 drilling campaign kicks off it will be interesting to see how long it takes the market to catch on, assuming the above is correct.... The asx market wont get any updates for nt/p69 as no partners are listed. Those in the know will know and if the first well flows like the last 2006 nt/p 69 well then it will be game on, imho...
If the above is correct then it really is the making of tsmp1, finally!
Hoping that the above will entice the more learned posters of TS like IAM and Dr Daz to share their thoughts about the likelihood of SK E&S being the strategic partner for TS...
Good night.
Adl
MEO Price at posting:
6.7¢ Sentiment: LT Buy Disclosure: Held
