jh says how much is heron worth/2010

MD & CEO Jürgen Hendrich
Any expectation of success that is built into the share price is eroded by an unsuccessful
result. Prospective shareholders weigh up the investment metrics of a potential investment
against the risks involved in undertaking that investment. Artemis offered the potential for a
quantum increment in shareholder value.

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The nature of the business we are in carries inherent technical risks which the board and
executive team is charged with mitigating. The Artemis prospect was identified by MEO’s
technical team, reviewed with many of the world’s leading oil & gas companies and
ultimately attracted Petrobras as our partner bringing substantial cash into the company.
This process can be replicated with the appropriate acreage position.
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We assessed Artemis-1 to have a 32% chance of success, or 68% chance of failure. The
largest risk was the complex nature of the trap itself. Ultimately, the irreducible risk can only
be tested by drilling the prospect.