My take is before the Farmout announcement MEO did a CR to ensure a drill for Artemis. They did this successfully and since have another 30+ mill from Petrobras that has been well documented as being an outstanding deal. Petrobras pay for the drill so MEO are effectively 60M+ better off than if they did not get a Farmin partner in respect to finances. Of course they had to hand over 50% for this luxury.
After watching the AGM on Youtube it became very evident from the body language and comments of the management team that they have a real cracker here and it is well known to many other parties. 30+ in fact.
In the event of success( before xmas ) the value of MEO will be 2,3,4 or 5 fold so I don't believe they would entertain any CR for less than the Current SP. They would be comfortable they have done everything to protect themselves and Shareholders. This could be confirmed by the fact none of us expected or considered this announcement coming out. Hence no gripes from any of us.
Conclusion - A very favourable announcement as for once MEO have jumped into the drivers seat and suggesting if you want to get on the MEO train, purchase your ticket now as it is leaving the station.
Choo, Choo
MEO Price at posting:
58.5¢ Sentiment: LT Buy Disclosure: Held
