O&G i a discovery business. 500bcf @5.8mmcf per boe = 80mmboe at 100% interest at G + liquids. Heron needs to flow. Assuming it does flow then on 5tcf which with the increased TD is too light, then 25% equals 1.5tcf + liquids = 160mmboe + liquids
All up these two plays if proven will have a huge impact.
If 62m of wet gas at Crowne is worth $500m to Santos then if the flow rates from Heron come back with liquids and without CO2, then the SP of MEO will be a function of what price is attached to those risked undeveloped resources. And with a market cap of less than $170m minus cash - then the entity value being ascribed to the current resources is 2/3 of 5/8 of.......
MEO Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
