forget the majors, page-17

The deals have been for 247.5 mT of LNG sold for $219b. I've converted million tons to TCF, & LNG sells for more then US$5/mcf, these days (thought its fairly straight-fwd, given the headlines that news had made across the globe).

The majors could use a lower recovery factor of say 40-50% & screw MEO around, if that's y'r point. However given the time taken in data-analysis etc, should b interesting to see the end result. I just hope its not Albers or Palmer, let it b Roy, Donny or perhaps good ol' Bobby.

All majors, globally report their 'sales' in MMBOE & I didn't bother going there since this is about LNG & raw-gas.

LNG sells for more then US$4-5/mcf raw-gas & is priced in USD/tons!! The end product is what matters & its all a Federal fact, no conspiracy theory here !!

As for the value of this project, well Karoon's 7 Tcf model has a 100% NPV of US$6.9b (refer their presentations for further clarity), so I don't buy the $80b theory myself. However, financial modelling is a different beast, so lets not go there.

Simply put, 100% Artemis is valued at 0.625c/GJ IGV (or $5.837/sh at 32% POS), thats it. So 20% of that recovery is MEO's net risked share ($1.17/sh) for now & they r farmin-out 50% of their current 70% interest.

Dont tell me they'd just get US$8 million for the seismics & walk away Happy as Larry!!

It all depends on how bad CVX or WPL want to lock in future gas reserves & we know this from last week's events that they r quite competitive.

What's even more interesting is when u look at WPL's presentation. Their gas-lift cost is US0.57c/mcf (or USD3.3/boe), which is pretty close to what MEO have used in their calc's (US 50c/mcf @ 80c Forex or 0.625 AUD/mcf).
Too bad the AUD is on parity with the USD!!