Agree fromthebay that not meeting specific timeframes that were previously announced was not good for any of our nerves.
But presumably a specific timeframe had to be provided to the market given MEO needs to commit to drilling prior to 31 December otherwise the permit lapses to CUE/MOG. Obviously you also need to set deadlines in a bidding process from a commercial perspective otherwise things just drift. Nevertheless we know for certain that indicative non-binding offers were received, and that final negotiations are taking place. All will be forgiven if the terms of the farm out meet what MEO has already set out as objectives- recovery of costs to date, at least a 20% interest retained, a farm in partner who has the required technical/commercial/financial ability(presumably MEO is doing its own due diligence in this regard) and an expedited drilling programme. Obviously these are the critical issues right now rather than meeting deadlines.
I too am holding, somewhat nervously, but one look at the MEO Top 20 list should let you know that there will be swings in the SP not necessarily related to reason or rhyme or BOTs or Instos or cappers.
MEO Price at posting:
63.0¢ Sentiment: Hold Disclosure: Held
