Interesing development on the farmin, all seems to have gone well except for one of our own bench-warmers!!
Which has lead the PF thinking whether 85% is good enough to proceed?.
What this means is MEO & most likely MOG have no qualms, CUE seem 2b the show-stopper. I for one would like more clarity to the clause that's causing CUE to baulk.
The issue could b most likely b with the stand-alone LNG project. Which means at some point in time, the farmour may decide to develop a fullscale LNG project insteadof sell gas to the neighbours (unlike APACHE) & may want to enforce some rules now rather then have a biffo in couple of years time. IMO this shows they r serious with developing WA-360P & believe in the Artemis nearology story & the prospect itself.
Which leaves us with 2 other options:
1) Re-negotiate with the 'unhappy party' & sort out the side agreement. This could take days, weeks or months.
2) Go with the 85% majority, which they already have. (assuming that the 15% stakeholders are free-carried for the drilling & MEO has raised the relevant capital late last eyar should things get down to this level, which is clearly the case).
3) Re-open the farmin process. This could b a test of MEO shareholders patience, again a matter of months, but seriously so much has been done to revisit this all over again. Note, if the 15% stakeholder doesn't budge then the PF wouldn't want to hang around either, hence the re-open the farmin process all over again.
Clearly a dilemma facing MEO & its PF for now.
Given how hot the LNG sector is, one hopes they can resolve everything amicably & move to the next step, i.e drill & prove the resource first!! Obviously there are longterm issues here, should thye discover the 12tcf gas & then decide what to do, develop their own LNG or flog it to a third party. The indications frm the update IMO, are the PF want to develop a stand-alone LNG project rather then have all & sundry onboard.
Just my thoughts.
MEO Price at posting:
36.5¢ Sentiment: Hold Disclosure: Held
