Hi guys, thanks for the positive feedback on my prev post. I...

Hi guys, thanks for the positive feedback on my prev post. I appreciate it.

Keeping with my nutshell motif, a more succinct (and simplified) way to quantify the two I thought of over this weekend is as follows:

Kar target 20 TCF total V Meo target 10 TCF total.

Most likely Kar keeps 50 % ownership V MEO 20 % after farm outs completed.

So another way to look at it is Kar will effectively own 10 TCF out of their total if their drilling results are as expected, and MEO will effectively own 2 TCF.

With that comes the revenue, costs, profit and possibly capex (worst luck) depending on the deals they can cut with their partners to cover up-front capex costs of respective projects.

So to recap, ownership-wise we're likely looking at:
Kar 10 TCF V MEO 2 TCF of gas,

KAR current market cap 1,840 Mill V MEO 169 Mill.

So basically Kar will own five times as much gas but their market cap and company worth is currently ten times larger than MEO's.

That last sentence was the defining point of this comparison at this juncture, and perhaps the most straight-forward way to compare these two companies.

I personally believe the other 500 percent unaccounted for in KAR's larger value/size than MEO relative to fundamentals, (aside from other projects not mentioned here that both companies have obviously) would be the fact MEO does not yet have the farm-in partner to do the serious heavy lifting on the capex (which should change in the next few weeks!!!), and the fact KAR are at drilling stage with their big brother partner right now.

It's this 'extra' 500 percent I for one hope to capture, on top of the other 500 percent I hope to capture in the coming months as MEO secures a partner farming out a probable 50 percent, and then begins a timetable for drilling ect.

To be frank, this is where the magic happens for a stock like MEO. We've all seen what KAR has done, and apart from the width of gas colum ect, they haven't fully proven Poseidon until they go back and re-drill. Now they're drilling Kontiki and look like punching through the 2 Billion market cap level any time now and not returning below it if recent monthly trends continue.

So essentially MEO like KAR is guaranteed to be a buy-the rumour-stock, and this is where both stocks' great potential lie for short to medium term investors/traders (as well as long-termers if drilling results prove correct.)


Now I'm not saying people are going to sell the fact if drilling targets prove correct. I'm just saying there is great potential as more investors find out about these stocks and come on board, for the full potential of share price appreciation to rise BEFORE a drill touches the ocean, with what investors are seemingly beginning to realise these companies may have on their hands...monster multi-trillion cubic feet projects!