Seems MEO were so confident in either Heron or Gurame coming off there was no back up plan in case both failed. The wolf is now at the door, no doubt about it
The only hope I see is if some of the permits have successful farm outs. This will allow MEO to recoup 3D costs. This will have to happen very very soon. Chances of a successful CR at this stage is not good IMO.
Problem is, as Corporate and others have pointed out, why would any potential farminee want to reimburse MEO several million for 3D, then pay ~$60m for the privilege of drilling, all for maybe 50% of one permit?
Much easier/cheaper to take out MEO completely. Though this will only happen if all of MEOs assets fit into the big boys plans.
I bailed out with well over 100k loss, not a good feeling but mea culpa. I put the remaining into OBJ and will revist MEO when some news eventuates although I feel there is more pain to come and we could certainly see 5c.
MEO Price at posting:
6.8¢ Sentiment: None Disclosure: Not Held
