the boy who cried wolf, page-22

With the benefit of hindsight, I totally agree that MEO really made a BIG mistake at Gurame, drilling sole risked.

In fact, counting the high impact wells (ie to MEO).... drilled adjoing their properties.....the company and its shareholders, have had to endure 9 failed drills in a row. (Dusters adjoining MEO, are no fault of MEO, but that perception of an unlucky company, could have a bearing, on investers decisions on holding stock in MEO).

####... Accordingly, it is a very valid, logical reason...that some investors will, or should not touch the stock again...fully understandable, based on the facts of the matter....######

Also they will be short of cash right now...it is possible a fund raising could see the SP go lower. My plan is to average down, in the event of a capital raising.

..CAP $65M....SP 5 cents....$25m cash - very comfortable with that.

However some investors may see the possibility or a news driven gap up, or at the very least...the stock being cheap,at that cap of $40m.

In a Sept presentation...Company say they will as a minimum recover $25m in previous seismic, for these pending 3 farmouts. (Not sure exactly what cash inflow with be forthcoming with these farmouts)


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The initial Greater Sunrise between Timor and Woodside/Aust Gov expires in 2013...thats why we have talk from the Minister that a resolution to the issues, will come to a head soon.

Shell and ConocoPhillips know all about MEO's Tassie Shoals.....I think together with Woodside, the Greater Sunrise project will come to TS.

That Greater Sunrise news could come anyday (or it might not).... but no question would cause a huge gap up type situation.

Here is another fantastic story, (see link) which just shows other "corporate" areas that MEO is working on...with regard to Tassie Shoals.

Another reason for not holding the stock....is maybe disbelief of the "big talk" made by MEO, in stories like this......as a shareholder, (and intending to hold medium term)...I fully understand the reasons for others to stay clear.


http://au.finance.yahoo.com/news/meo-australia-limited-asx-meo-001700010.htmlsituation.

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I think the worth of MEO proposed farmout of permit 454 will soon be tested.....ie whether or not ENI bid for the farmout, given ENI would benefit most, because of Blacktip.

It is pointless ENI talking to MEO about a farmout at 454.....by doing a deal with MEO at 454....maybe the NPV worth of such a deal, is more than the whole of MEO.

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At say, the shareprice remaining at 7 cents....and Blackwood is successfully drilled, in May...that would put Herson North back in the picture. 5 months to wait for a SP of 35cents on Blackwood ALONE...I just can't be out of the stock.

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The seismic at Ibu Horst

...I don't fully understand exactly, what degree of improved likelihood of drilling suceess, comes with modern seismic. Sumantra is a strong oil gas provence....much of the research suggests seismic is a must when drilling - could MEO secure an upfront payment, associated with the farmout at Ibu Horst. They say they will.

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These three or four "projects"....are big hit, extremely high leverage, when you are talking about a $40m cap company.

Still very keen to hold, and looking to see how they handle the "funding" situation in the short term...confident of SP rise, simply because of the completely beaton down base, MEO is now coming off.