MEO have drilled through 18m of the Baong Sandstone at Gurame, and are now taking a 30m core before drilling ahead to the base of the Baong.
Given 2/3rd's of the gas (and even more of the liquids) being targeted at Gurame is in the Baong sands, the Gurame project has just been hugely derisked, hence some of the buying this morning.
Subject to confirmation of success, MEO will have a much higher chance of farming-out an interest in Gurame and Ibu-Horst (separately) on much better terms than they would have previously. Oh, and this should involve recovery of past costs.
Unlike the one-hit wonders in the past (I'm talking about MEO's wildcats, not mmorshe record collection), more than likely NT/P68 and Seruway PSC will be followed up by 2 wells in each of the permits fully paid for by others.
The splutter in the share price is a joke, for now.
Prepare for glory folks.
MEO Price at posting:
25.0¢ Sentiment: LT Buy Disclosure: Held
