I can... hey ninie, MEO went to one buck 50 as the market derisked MEO's tassie shoal assets as the market started to factor in higher chances of success on Heron, blackwood... MEO spent extensive funds on coring, Furgo data... 3d...and the data looked guinely strong at the time... I thought it was going to a success until a lucky flow rate announcement from heron of a mere 6...mmcf
I really cant believe some of the comments here hammering MEO management... MEO had a major position on Heron... the company should have been finished after that... but no... The company put in early ground work on Zeus and got that off the ground.... and also drilled blackwood... beyond my wildest expectations to get that far...
This is a very risky sector... I dont think you can blame management entirely for this...
drilling risks are what they are... if its a 20% chance of succes... then that means 4 times out of 5 the company will fail... its that simple... and its even higher when you span the whole cycle of discovery, development, into production...
Sounds to me like many of yous didnt/dont understand the risks to start with... the only way to truely eliminate the big risks, is to invest in oilers with developing projects, which also provide big upside because of a high discount rate... peace out... I hope that explains your question...
MEO Price at posting:
6.9¢ Sentiment: None Disclosure: Not Held
