this will help you sleep @ night

I'm not in MEO atm, and so technically I benefit from SP being lower as I've been looking to get back in the past few days. Luckily I sold @ 70 last week as I was all-in and sold to get back in and set, in the swinging 60's. In hindsight I was simply plain lucky to have been patiently waiting before buying back in when the ever slippery and seemingly nimble Albers (a lawyer of course!) came in with this sucker punch for MEO's SP today.

I'm not telling you holders this to make you feel bad. I'm telling you this because I want to prove I am and have always been pro-MEO regardless of whether I'm on-board or not at a given time. I must disclose I also have half the people I know on this stock so I have the same benevolence that I have for them that I have for any of you guys I have convinced in the past that this is still the most undervalued stock on the ASX.

In other words I'm trying to stop as many people dumping as I can as it is just plain silly as MOG's announcement today is IMO Albers fixing a fundamental flaw in the previous agreement which was probably brought to MOG's attention by the Farm-In partner who may have felt extra pressure on them resulting to this unforeseen development in MOG's back door style listing of their 15 percent Artemis stake. MOG's interference IMO has everything to do with the delay in MEO securing a partner as it means the other 15 percent is now LISTED INSTEAD OF held in a private company which has implications.

Having said that I think another alternate possibility is the Farm-In partner may have insisted that the final 15 percent (now MOG's) be listed as opposed to private as the timing would validate this theory or something similar to this. (Who knows for sure.)


Whether it was MOG/MEO or the potential farm in partner's insistence, Artemis will now be fully listed assuming the super major taking 50 percent is listed (highly likely). IE: MEO = 20% MOG = 15% CUE = 15% SUPER MAJOR? = 50 %

So my theory is this would allow the ABILITY or OPTION for the Farminee to be able to take over 100 percent of Artemis if they could convince the other parties either before or after proving the G.I.P, or hostile take it over if it came to it. I'm not saying they would want to take over 100 percent pre-drill, just that by now having MOG take the last 15 percent of Artemis, it is now far easier to buy or take over Artemis if it does turn out to be the mother load MEO's surveys predict.


That was point one.

My second point is simply this: Please check my prev post for a refresher course on the fundamental research I've done on this baby. (It was one of highest ever rated posts on MEO after all). Click my name and look at "Time to talk in Telephone numbers"

If you can't be bothered and just want the figure I arrived at, the crux of it is that going on Gorgon figures...the Chinese recently payed $7.5 Bill PER TCF.

So MEO's 20 TCF with 12 TCF recoverable has a revenue target of 12 x $7.5bill TCF = $90 Bill revenue for Artemis. Out of that Super Major gets $45 Bill, CUE $13.5 Bill, MOG $13.5 Bill AND MEO $18 billion. Somebody care to work out the Net Present Value on that $18 bill for me? (I lack sleep time after writing this post)

Anyway $18 billion in revenue potential and they drill most likely in FEB nxt yr to prove it. 12500 small investors in this stock I've heard it said. If that's so I hope the short termers have finished with their stop losses and fundamental potential can reassert. Jurgen better come up with a partner by the end of this month or even I will stop defending this company, but until then, they're just one oil-major partner away from being the next Karoon who are about to re-drill Poseidon very soon I might add.

I'm saying all this and I'm not even on board right now. I don't think any of our passion for this stock is misguided one iota however, and nothing has changed except Albers has given MOG a safety net in case the unthinkable happens. At this point, I'm confident not getting a partner is literally unthinkable given this is so close to Wheatstone and could be half the size of Gorgon!!!

Chevron and Woodside in particular are just too DESPERATE for all the gas they can muster for their respective projects which neighbour Artemis.