Back to the teens (cash backing, ie). Our mkt wants a success story here, not a duster & a lot will depend on the newsflow.
So despite all the ongoing efforts overseas (farmouts et al), drill results frm one's own backyard will matter more, mayb Indonesian govt wears a differnt set of glasses for Oilers but two miners have been screwed bigtime changing rules & what not (eg Intrepid mines & WEC). So, if HS#1 is good, then most here would like to see more appraisal drilling.
With 540mil shares on issue, the Board have been careful not to do a CR regularly just to keep paying themselves fat bonuses etc etc, so for that u've got to applaud the Jurgmeisters rationale. So whatevr b one's strategy, have a plan-B or C.
Looking at the numbers that have been thrown around in their latest research report. MEO's valued at 54c, which includes everything.
The risked value for Heron is just 23c & unrisked is blue sky $1.17/sh. Here's the abcd behind it.
MEO's 25% equity at Heron is apprx 230.5 BBOE, so at an unrisked value of $2.75/boe its valued at $632mil.
Divide that by 540m shares & u get $1.17/sh.
Apply a risk factor of 20% & u r down to 23c/sh.
So thats the maths behind the gas at Heron.
Remaining prospects have been calculated accordingly. However, a bigger chunk priced for Heron.
For now the world revolves around the rig arriving onsite & results by late Sept-early Oct & logging results on any gas shows frm the Plover reservoir.
Good luck to all.
MEO Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
