the joint release, page-38

Depending on who the PF is & the details of the farmout that's been worked out, MEO have indicated that FIRB should b the next step.

So, on the basis of a +ve outcome, I'd expect MEO to open at a premium to current levels. We saw it peak at 82.5c mid-Oct'09, sp that level should b tested first up given that its Judgement day.

At friday's close of 37c with 477.221m shares,

MEO's mkt cap was A$176.572m
Cash on hand: $40.3m
EV: $136.272m
FIRB threshold: $219m
Risked valuation for 20% Interest: $1.02 &
Unrisked valuation: $3.19/sh

Whilst I dont expect the SP to run to ultra-high levels of their unrisked value on Wednesay, one could argue that this $3+ will b tested, once A#1 approaches spud date & should it b commercial. So, as is the norm with energy stks, another level of consolidation should begin later-on.

FIRB shouldn't b an issue, we've seen plenty of applications frm Chinese firms in the resources sector in the Pilbara recently, so don't consider that as a show-stopper.

Note that Santos went thro' the FIRB process last August, when it sold part of its 3 fields (Tern, Petrel, Frigate) to the then first time arrival, French GDF Suez.

We wait for the breaking news.