when the market wakes

it will realise the enormous value inherent in our little company.

Brokers like Octa Phillip Securities were valuing MEO at $0.54 before the current wells spud.

http://www.meoaustralia.com.au/content/Document/Octa%20Phillip%20MEO%20120803%20final%20report%208-8-12.pdf

When you take the recent SPP into account, the MEO share price still needs to double from where it is to get to the $0.54. Now lets break things up into two areas, valuation basis, progress since report.

Since this report was prepared, Gurame has discovered exactly what MEO said they would find, and to paraphrase DM, Heron is at least as good as we could have hope pre-drill.

Now to take the valuation side, head on. Lets see what POS Octa applied to each of these projects. Both Gurame are existing discoveries covered by 3D. Octa applied an ultra conservative POS of 20% to each of these projects.

If we were to tweak the Octa analysis so as to increase the POS got these two projects only, from 20% to a still ridiculously low 50%, MEO's valuation would increase by $249 million. When divided by the 586 million MEO shares on issue, this is equivalent to another $0.42/share now. Not on Monday, not on confirmation of success, but now.

The Tassie Shoal projects are also not valued in the analysis.

Buying into MEO and holding is a real value play. There is so much value in the projects, a capable board and technical team, and when sentiment turns, there is a whole lot of rerating to follow.


_____________

I'm surprised no one has commented on DM's comments on Gurame from the video. DM indicated that FMI was run for Gurame and the well is highly fractured.

So, we have 237m of gross gas pay, highly fractured reservoir and formation came in as prognosed. There are no guarantees in this game, but this is not a COS 20% well. Predrill it may have been 50 - 70%, after the details from the MEO AGM, I'm thinking 80% until flow testing.