In the O&G exploration business there are no 100% certain plays. EVERY play has risk and we accept that risk by investing in these companies. It's no use moaning about an unsuccessful venture as if it has some right of success.
Decisions are risk rated on the information to hand and while the pay-offs are grand in a successful play, the downside is capital spent for zero gain. MEO have had their share of failures but no-one in a leadership position at MEO wanted or expected the failure. The data is at best a guide only. The chance of success is generally low. You roll the dice, you hope to get lucky. It's the nature of the business. Period.
The company has consolidated and is now focusing on plays that have huge downside. It's the upside that keeps us shareholders here and by golly do we crow when the we have success.
The present management were seen initially to be level headed decision makers and that job is even harder in the current oil price environment. I believe they will come good and return shareholder value to MEO. Otherwise, I would simply sell my shares and move on. My opinion only. Do you own research.
MEO Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
