What would be your rough guess as to what the LNG/Meth project would be worth to Meo if it was to be commercialised because I think this is the potential whale and is one of the flow on effects you talk about with a successful Heron.
Is it totally outragous to say that Eni may say to Meo at some point we will spend $5 billion to develop the LNG project but we want say 70%. If Eni would only do this to achieve say a 20% return on investment then they would be making $1 billion p.a for their 70% share so MEO would be making approx. $400 million for their 30% share per annum and on a Pe of say 5 to be conservative would give a market cap of 1.25 billion which means a valuation of 12 times from current level or around $2.40.
All very rough workings but I can see the potential.
MEO Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
