some facts on meo

I dont know how many people have seen this but here is a portion of what Kris from money morning has to say on Meo.

The extension to the timetable is - we assume - to allow some of the remaining nine companies that have signed the confidentiality agreement to visit the data room over the next three weeks.

But even more important than that is the quality of the companies viewing the analysis. 12 of the 17 companies are classified as 'majors/national' companies. In other words, they are the big end of town.

We've seen in Queensland how competition among even just two parties can help to bid up a price to fair, or even better than fair value.

Of course, remember that we're not talking about a takeover here. This is a farm-in agreement where MEO is looking to partner with another company to develop the Artemis prospect and extract most of the 9.5 trillion cubic feet of gas.

This is a potentially massive deal for MEO. It will see MEO retain just a 20% share in the Artemis prospect, but even so, based on recovered of 70% of the gas and assuming USD$0.50/mcf, it values MEO shares at $2.

And then you wonder why people are snapping the stock up so quickly.