I am not sure why ronstieb thinks he gets shouted down here in the MEO forum. I have always appreciated his input. We always have to sort the wheat from the chaff in all forums.
I just don't understand the antagonism between the JV threads as we are all in the business of making a profit be it as SHs in the market or companies out in the oilfields, but so be it. If CUE holders think MEO and their SHs are a joke then that is their prerogative, it all helps the world go around.
To comment on ron's post there will always be the BESBS impact on any company leading up to a wildcat well. Of course the real action will be if there is a gas show at A#1.
The true pre-spud impact on MEO will depend on whether or not MEO is viewed as a unidirectional company at the time, as the CUE forum and others see it. If MEO were to be solely reliant on Artemis then that comment would be true. However we must look at all facets of MEO to get a broader picture of the company's direction.
Let's look at the future prospects of the company.
As per the 'PBR Farmin Agreement' there only has to be a show of gas at A#1 for MEO to receive another US$31.5m cash bonus in Jan 2011. This is on top of the $31.5m we will be getting once the transfer regs are approved by the WA gov.
PBR will then have the option to become the operator with MEO free-carried for 20% of two further wells up to US$62m each. MEO now have a 25% interest so will need to pay 5% share of costs.
This is added value which will affect MEO's capacity to progress their other projects.
The NTP/68 seismics should have been released and the data room opened for a potential farmin partner to further tset the Heron/Blackwood fields.
A lot of work has been done regarding the Tassie Shoals projects prior to the GFC. MEO has been picking themselves up since then and are looking for gas feeds, apart fro mtheir own potential fields. This area is constantly being promoted by MEO and has been for years now. Reference to the Petroleum News article has been made on another thread and can be viewed .... 'Here'.... Along with other presentations being made at the moment it explains the anticipation of exciting times ahead in this area.
We need to see the timing of any other projects MEO may have lined up once the transfer of title and MEO's funds can be released. This amounts to ~$70m (pre A#1 drill success).
Any one or all of the above, if timed right, may negate the BESBS effect on the upward momentum of the SP.
We will just have to wait and see but be aware that MEO has a history of being volatile. Perhaps that volatility will be tempered once we get more institutional involvement. We will only get this once MEO's risk is lessened.
Even though MEO have been around for some time they have stuck to their business plan and vision of the Tassie Shoal Methanol/LNG projects. It has been some time coming and has some way to go yet but I am sure they will get there in the end.
But that is just how I see it.
#:>))
MEO Price at posting:
38.0¢ Sentiment: LT Buy Disclosure: Held
