quarterly reports, page-15

Thanks Eagles,

Like many I lost big time with MEO but I appreciated the risks and if things had been different, I could have won much bigger. That was the game.

I was in for the promise of Heron South and not for Gurame with which I had problems with related to the play itself and exploration strategy(which I made known on HotCopper - HC). Still you never know and Gurame might have come in although I thought even if it did the upside for the SP was not great despite all the spin put on it by MEO itself and some posters.

The future? Well I still like MEO's permit interests in the Carnarvon Basin including the Artemis block. I would like to see more of what MEO has been doing on these blocks and am very surprised that MEO hasn't put anything out recently. They mad a splash earlier this year about the new seismic they had acquired but since then, nothing. Maybe something in the New Year.

WA454P in the Petrel SB? A good chance of farming this block out and retrieving some of the cash they have spent already. I saw some pics from their new 3D seismic at the Good Oil Conference this year and it does look promising. Something to look forward to when drilled but I don't think the cash component of the FO will be great. And cash is what MEO needs at the moment.

I don't like their other northern Browse/Vulcan permits around Talbot, small, high-risk, but really haven't seen much for a full view.

Tassie Shoal - they need the gas to make it work. I can't see anything happening with this project any time soon - despite what MEO is currently saying.

There have been some significant asset sales of gas in the region recently - Evans Shoal, Barossa and Caldita, and it is disappointing that MEO weren't able to deal themselves into any of these. Eni bought into Evans Shoal recently paying a very large price to Santos, but MEO perhaps missed out on an earlier opportunity by not being able to deal with Magellian when they had the option to buy ES at a much lower price. MEO have tried to get Tassie Shoal going for a long time now, and I wonder about their business strategy and accumen that it hasn't happened. Of coarse, HS coming in might have solved the problem and of coarse there is Blackwood.

I don't think that MEO has the cash for new acquisitions - this strategy is moribund. They will have to find a use for expensive and redundant staff.

So, on ballance I still think that MEO has some potential and life left, but there will need to be changes. What I don't like is what I regard as the excessive hype that emulates from the company and some posters on HotCopper, their disregard for SH (through CR at inappropriate times)

However I will continue to hold MEO shares for the moment for this promise (I haven't got much else to lose anyway).