I have just spent a little time catching up on what was happening here. I see that we are well down on activity with some notable absentees.
Well perhaps Christmas could have been a better on for all us MEO SH's. Such is life and the O&G exploration business. It could have been very different but as many posters have pointed out, you never know until the drill hits. Even then you still might not know.
I did think though that Heron South-1 with Eni was a good chance. That was what I was hoping for. I always regarded Gurame as very risky (despite the voracious hype from some posters), particularly because MEO could not farm it out and were forced to drill it themselves. After 6 previous wells on the Gurame structure the company crowed that they knew better. From cock-of-the-roost to feather duster. I was going to add "in no time at all" but unfortunately the drilling and testing took much longer than planned and budgeted for.
Drilling an expensive offshore well or even getting into that position was I believe foolhardy. And this is not a latter-day opinion. I posted my opinion well before the test and was derided for it. The entire company was risked on the success of one well. What would have happened if MEO was unsuccessful in raising additional capital? Thank goodness for loyal SH's and the fund that invested (how are they feeling now).
I to am interested in seeing how much cash it left in MEO. There can't be much. But as others have commented on, MEO still has other assets in play. There could still be a turn-up, although whether it will be enough to save the company, I don't know.
MEO Price at posting:
7.0¢ Sentiment: None Disclosure: Held
