MEO has been very close with AK, major office in Melb, as is MEO. AK are close to Statoil.
Statoil are into expanding GTL/Methanol/GTL, and the only dot they dont have on that map is Australia!
The minimum terms sought by MEO were announced as early as May 2009, summary below.
Terms: Component Minimum Terms Sought: 1. Seismic back Costs Back costs for 100% of actual costs of MEO and Artemis 3D surveys. (Approx US$8 million to be verified by reasonable provision of information, payable at time of execution of Farm-in Agreement) 2. Primary Well Costs ] 2:1 Promote on primary well up to 50% equity (i.e. 100% of primary well costs would earn 50% equity) ] Well cost uncapped ] Production test included 3. Secondary Well Costs In the event of a successful primary well (hydrocarbons recovered to surface): ] 1.4:1 Promote for 2 follow-up wells (Promote to be applied to MEOfs share of well costs. i.e. if earning 50% equity then Farminee to pay 70% of cost of 2 follow-up wells which is Farmineefs 50% share plus MEOfs residual 20% share) 4. Other Other terms offered by Farminee to be advised
MEO Price at posting:
44.0¢ Sentiment: LT Buy Disclosure: Held