Kivi,
Young Ivor says that assuming 12Tcf and $4/bboe the unrisked value of MEO's share at Artemis is $4.56/share.
http://www.meoaustralia.com.au/content/Document/MEO%20Artemis%20Outline%20July%202010.pdf
Ivor, much like myself got into KAR at sub $2 levels, in fact I first entered KAR before the late Ken of TGH.
The current share price is a whisker under $0.56, and the company has almost $0.15/share in uncommitted cash, so the enterprise value per share is $0.41. It will take a number of wells to prove up 12Tcf of gas, however given MEO's 3-well carry, the well understood geology (much better than Poseidon, ie shallower and with better porosities and permeabilities), the upside is attractive.
In a best case scenario, Artemis could deliver MEO share holders a 10-bagger. (we don't use this phrase anywhere near as much post-GFC, but this instance justifies it.
This simplistic analysis obviously ignores up to 5Tcf of already discovered at NT/P68 and the monetisation value of assets (TSMP) that have the potential to convert a liability (CO2) into an asset (methanol).
Gee, I wonder if I will be holding through this drilling campaign? At $1+/share, I would hedge my bets, but at $0.56 selling out is like throwing away your ticket before the race has even commenced.
- Forums
- ASX - By Stock
- to buy or not to buy
Kivi,Young Ivor says that assuming 12Tcf and $4/bboe the...
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MEO (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online