AS I have said, LOOKS LIKE MOSMAN WERE CORRECT AFTERALL

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used moggie

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26/08/15

16:10

Post #: 15880076
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Originally posted by mjshackl ↑

Yep, it's been a busy 6 - 8 months for the company, now I'm not seeing a lot in the short to medium term horizon... MEO will only have momentum with announcements.

I recently had an interesting chat with a guy who is an expert in asset management in the O&G industry. His opinion was, there was far more coin to be made in the current market environment from existing producers managing their existing assets more efficiently and bringing down their opex in order to improve their margins on what they already produce, rather than trying to bring new assets on line and proving up new resources.

The big projects out west were built in a manner that was all about getting the gas out the door ASAP, rather than carefully implementing commonality across gas trains and between partners in order to run the efficiently. Prices were good so "don't spare the horses and bugger the details" mentality. If each train is slightly different, you need different replacement components for each train and no common procedures as well. That means having more parts on hand and employing more people to keep the equipment running.

Now prices are subdued, assets are being written down globally to the tune of Trillions of dollars. I'm honestly struggling to see where MEO can go from here in this environment.

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AS I have said,

LOOKS LIKE MOSMAN WERE CORRECT AFTERALL

MEO Price at posting: 1.5¢ Sentiment: None Disclosure: Not Held
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