From MEO's Annual Report we know that significant progress has been made progressing the Tassie Shoal projects, particularly: - Technology, capital and operating costs have been updated by major international engineering firms confirming the cost competitiveness of both projects; - LOI's have been signed with three top tier methanol buyers; - Major Chinese cornerstone investor prepared to take 50% equity in both methanol plants; - Indicative offtake terms offered to nearby resource owners of gas sufficient to supply two methanol plants for two years.
The above position certainly suggests that MEO's Tassie Shoal concept has progressed far and is now a genuine solution to the stranded high CO2 gas in the region. My query is why haven't ENI shown interest in the concept? They have known for a long time the general constitution of their Evans Shoal gas but, according to my past discussions with MEO haven't shown particular interest in coming on board with Tassie Shoal. Why not if it offers a seemingly compelling solution for their Evans Shoal and possibly Blackwood high CO2 gas. One would think that, following ENI's completion (near completion) of their appraisal drilling at Evans Shoal, any positive results there that were conditional on supporting the Tassie Shoal processing hub concept would now be adding material support to MEO's share price which is currently down today languishing dismally at $0.064!!
Someone with credibility please enlighten me as to why ENI have thus far shown little interest in Tassie Shoals.
MEO Price at posting:
6.5¢ Sentiment: Hold Disclosure: Held
