gregke, I'm not trying to down ramp but any conversation on here today will mean minimal to the SP anyhow.
I think the directors of MEO have sold their shareholders short.
This contract is also subject to FIRB approval, which should be fine but you never can be certain.
MEO have taken a risk. They have essentially given 50% of their 70% away for $80mill if the first drilling is unsuccessful. (31.5mill cash, 7.5 mill reimbursement and 41mill that will be spent on drilling.)
If it is unsuccessful they will be left with 20% holding and no free carry. They will have 31.5mill cash plus the 20odd million they hold now.
At 43.5c the market cap is $207mill
MOG 15% has a market cap today of around $30mill
MEO Price at posting:
43.0¢ Sentiment: None Disclosure: Not Held
