fact or fiction, page-41

MEO's rate of cash burn has been misunderstood by the punters and has further led to the simpletons view that MEO will need to raise major capital soon.

The reality is, the bulk of expenditure this year has been on 3d at 4 projects, buying into Seruway and other technical studies. Strip these costs out and the underlying overheads are very modest.

Given MEO is fully carried at NT/P68, MEO is more than capable of paying for the Gurame and Thailand wells.

I also have no issues with MEO doing a placement for 50million shares in January at 60c - 80c once ENI have proven up HS-1, committed to another Heron well as well as a Blackwood well. Even before considering Gurame results.

If you take the COS of Gurame and HS-1 as 70% (conservative), then there is a 91% chance that at least one of the projects will be successful.

Don't catastrophise folks. Take a probability weighted approach to risk based on risk- return.