I'll just borrow from an earlier answer I gave late last year:
After i.) stuffing it up in the first place by not exercising their pre-emptive rights to acquire Puka and ii.) then through utter bewilderment then making Puka/Shannon the number 2 priority thereafter when they owned only 30% of the field, I must say iii.) don't stuff it up this time round. Play dirty and get the 70% interest you should have got in the first place.
Moving forward the low POO is an archilles heel for Meo at this stage IMO, given the uncertainty caused by what in effect amounts to the collapse of the OPEC cartel (OPEC just pumping oil into the market causing a continuing glut at a time China's economy is slowing). Both the Cuba and NZ strategies are impacted by the low POO.
I have just put my shares in the bottom draw now - the March 2016 OPEC meeting might become quite an important meeting in relation to giving direction to world oil prices (and LNG projects, many of which the expected new ones might be struggling since LNG pricing is linked to oil pricing, i.e. 17% of the oil price is considered full LNG pricing on an oil pricing basis bust most LNG contract prices are around 85% of full oil basis pricing). And most new LNG projects would not have been anticipating the low POO when the Final Investment Decisions were taken.
Relating the above to Meo, in other words, TS project will continue to be on the back burner as well, unfortunately, and Beehive will be dependent on POO improving. The irony is given the low POO price you could probably do your exploration work quite cheaply now but that would require Meo getting another farm in partner who has the cash and will to do it in the immediate future.
Therefore, don't see much action in the short term, but Cuba may surprise (but that is about it) and will only surprise IMO in the event a US company or another company decides to use Meo as a vehicle for its investment decisions into Cuba and/or Meo has got good tenements there (i.e. wait and see). Hopefully Meo has sufficient cash reserves to ride out the current storm.
All IMO and DYOR.
MEO Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
