For the lazy ones, the quote I referred to yesterday:
from http://www.meoaustralia.com.au/icms_docs/112211_Baillieu_Research_on_MEO_Australia_-_nov_2011.pdf
Young Ivor assumes another 220 millions shares will be issued, as well as a low gas price, below recent transaction valuations.
Nonetheless, NT/P68 alone is worth a $1/share by the time FID comes around. This excludes cash, all other assets of MEO AND EXCLUDES THE VALUE OF TS ITSELF!
"Value implications. The success of Heron 3 would have dramatic value implications for MEO, as a good outcome would give a clear look-through valuation for the 25 percent balance of the project for MEO. ?? Using a mid-point recoverable gas resource of 6.1 trillion cubic feet and a post-drill value of 30 cents per gigajoule (combined for Heron and Blackwood), we see the value upside to MEO at around $541 million, or approximately 70 cents per diluted share, in the ENI joint venture. The following table shows our estimate of the value created if the Heron and Blackwood exploration programs are a success and ENI exercises its options to move to 75 percent ownership of the permit."
MEO Price at posting:
18.5¢ Sentiment: LT Buy Disclosure: Held
