Petro basically put the deal together and used MEO as a vehicle due to its status as a certified operator in several jurisdictions, Petro basically retained the right to back-in to the deal, by paying its share of back-costs. If Petro stumps up the cash, great, if it does't, great.
New overnight that Unilever and major US brands are getting back into Cuba, supports the view that the market is being liberalised. Even in the current environment, MEO should be able to extract CASH from a farm-in. The quarterly is due in the next week or two and I expect serious good new on this front.
Stay tuned.
MEO Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
