On the face of it I can't argue with any of the recent comments giving the thumbs down to the Heron/Blackwood deal. But lets look a little deeper. TS was shelved because interested parties (presumably) have gone cold. Why? is it just because of present market conditions or is it because there was no firm gas supply contract sufficient to justify the methenol project going ahead without ENI involvement in both fields. ENI may well have other ideas about how to process the gas from its fields in the area. MEO doesn't have funds so can't do anything constructive while maintaining the status quo on the two fields. Blackwood alone has insufficient gas for the TS meth'nl project but Heron has. Could it be then, that the deal securing 100% of Heron is sufficient to reignite the interest of the methenol prospective parties albiet, that MEO will need to farm out Heron again to either one or more of those parties, or to another company in order for the TS project to move forward. My point of course is that in a game of chess, one move doesn't always reveal the gambit. All IMHO and as always DYOR
MEO Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
