Swannie, To answer yr question one needs to look at different...

Swannie,

To answer yr question one needs to look at different scenarios whilst comparing KAR vs MEO.

1) Mkt Cap & Cash on hand are a factor apart from the assets, apprx 5.32 times. (Mcap: 488/92=5.3, Cash: 140/29=4.8)


KAR: 149m shares @ $3.28, Mkt Cap: $488.7m, Cash: $140m
MEO: 417m shares @ 0.22c, Mkt Cap: $91.8m, Cash: $29m

Apart from the above both have GIP reserves to throw around with no developments thats generating cashflow at the moment.

2) If u were to look at KAR's Browse basin assets, they did the ground work 4 years ago & spent a fortune in 3D seismics etc, this in turn generated a lot of interest, initially with British Gas farming in & then eventually Conoco-Phillips. The COP deal sealed it for KAR (49:51 JV)

MEO have also done the same hard yards. Without 3D seismics, no one will drill a exploratory well offshore today.

3) KAR started mkting Poseidon on the same lines as MEO went about with Zeus.

Again Pos-1 covers 280sqkm area with a strong seismic signature in the volcanics there & nearology to Woodsides's Teresa & Brecknock fields. GIP at Pos-1 was initially 17.14tcf, its now being toned down as 7 tcf.

MEO, Z-1 covers aprx. 200 sqkm & has a similar seismic pattern with WPL's Perseus/Rankin fields. MEO went about searching for interested parties & eventually found RDI to pay 80% costs for drilling Z-1 & if it comes good, then its free carried for 2 other wells. Z-1 is targeting 2 sands & apprx 18tcf GIP.

4) After KAR had signed up COP as JV partners, they went about looking for other areas & Brazil is one place one wants 2b today, esp. in the deeper water segment with some big discoveries lurking around.

MEO are still looking at developing a prospect locally, leave aside do a Hugh Jackman & 'Go to RIO'.

5) KAR did start as a 20c float in 2004, but they only generated interest in the mkt once the big players got on board. MEO has Clive Palmer as the big-gun on board, so that should do for the time being. Any junior needs a big player to drive it forwards as burnout only pushes them back into their shell.

Current drilling & any consequent discoveries should change the scenario for both companies, IMO.

Hope this more then answers yr question on why one is better then the other. KAR got off the blocks earlier then the MEO.

cheers