evans shoal transaction history, page-2

Hi ronstieb

It wasn't as simple as MEO selling their 15% stake. In fact it was quite complex and ultimately devastating to the original concept of MEO.

Methanol Australia (MA) (now M(ethanol) E(nergy) & O(il) Australia) never had any control of Evans Shoal (ES) as MA was set up as a subsidiary of Timor Sea Petroleum (TSP) through a demerger in May 2000 which saw the establishment of Natural Gas Australia (NGA} in March 2000.

* ref ASX release 9 March 2000 *

and MA in May.

* ref ASX release 10 May 2000 *

MA was set up to develop the Methanol facility to process the ES gas supply. At the time TSP had a 15% interest in ES (Shell 75%, Osaka 10%).

By late 2000 TSP became Escape 3D Petroleum (ESP) which was to be renamed and listed as MEO by the end of the year. NGA was also listed on the ASX with its principal activity being the development of the Evans Shoal gas field. NGA retained the 15% Evans Shoal whilst MA kept the concept of the Tassie Shoal projects.

* ref ASX release 24 Oct 2000 *

and

* ASX release 23 Nov 2000 *


In Feb 2001 Shell negotiated to sell 50% of its 75% ES holding to Woodside (25%) and Phillips (25%).

* ref ASX release 23 Feb 2001 *

NGA pre-empted this sale and increased their share by 25% (to 40%) along with a proposed merger with Santos.

* ref ASX release 09 Apr 2001 *

The acquisition of 25% ES was completed in May 2001

* ref ASX release 2 May 2001 *

And the merge with Santos, along with the 40% ES equity, was completed in July 2001.

* ref ASX release 16 July 2001 *

In August 2001 MEO negotiated the acquisition of various companies that held the Tassie Shoal Projects, NT/P60 petroleum exploration permit (later relinquished) and
listed company share investments.

* ref ASX release 10 Aug 2001 *

and

* another ASX release 10 Aug 2001 *

It is interesting to note that Santos had 'the right to acquire a direct 25% interest in each of the Company's Tassie Shoal Methanol Project and LNG Project' which did not eventuate. Santos eventually disposed of its shares in MEO and refused to look at the TS solution leaving MEO to look for a gas supply elsewhere, including the acquisition of NT/P68 with the Heron and Blackwood discoveries.

With the ensuing JV with Eni it appears that the process has turned full circle. The stumbling blocks put in place by Santos may soon be pushed aside for the long awaited TS solution to become a reality.

Will this, at last, bring recognition to MEO's visionary plans? I believe so. I, like so many others, have been waiting a long time to see TS take shape but patience is the key. The present management team have diligently put the building blocks in place whilst we long term investors have given our resolute support.

If there are any new MEOmites out there I put together a brief history of MEO in one of my previous posts:

* Post #: 5475472 *

MEO have come a long way over the months since that post but this is only my opinion so please DYOR and be certain of your investment decisions which are yours alone to make.

#>:))