Each one in plain English, with the numbers worked through for a shareholder.
18 Aug 2016capital raising announcement● NeutralMajor
MEO raises about A$1.69m through a placement of about 46.9 million shares at 3.6 cents, a ~17% discount to the 10-day average price. Funds go to Cuba Block 9 drilling planning and working capital; a share purchase plan targeting ~A$1m is to follow.
What it means for a shareholder
46.9m new shares at A$0.036 to raise about A$1.7m. That's 5.0% dilution: every existing holder's slice gets 5.0% smaller. If you held A$1,000 of shares (27,778 at the issue price), your slice goes from 0.00312% to 0.00296% of the company. To keep it you'd need 1,462 more shares - about A$53 at the issue price.
Operations update: MEO aims to finalise a drilling plan for up to two Block 9 wells by Q1 2017, targeting the A2 Lead and a Marti-5 follow-up. Upper Sheet and Shallow Tertiary results due Q4 2016; Beehive farm-out targeted to complete in Q4 2016.
Tassie Shoal LNG project environmental approval extended to 2052, matching the methanol project, and the 3% CO2 feed gas limit removed. Approvals are not a funded development or buyer; the earlier gas purchase offer had been rejected by producers.
Open Briefing interview with the MD restating the Block 9 assessment: Lower Sheet Play has 15 leads, over 8 billion barrels in place and 395 million barrels unrisked prospective resource, with two further plays under review. Nothing new beyond the 7 July announcement.
MEO appointed Dr Rafael Tenreyro, recently retired Director of Exploration at Cuban state oil company CUPET after a 42-year career, as its part-time Havana representative, ahead of planning field activity on Block 9.
July 2016 corporate presentation repeating the Block 9 assessment (8+ billion barrels in place, 395 million barrels prospective resource in one play) and the disciplined strategy. Nothing new beyond earlier announcements.
Cuba Block 9 prospectivity assessment completed for the first of three plays: Lower Sheet Play has 8.183 billion barrels oil-in-place and 395 million barrels unrisked best-case prospective resource (100% basis; 267 million net to MEO), across 15 leads. Accelerated drilling being examined.
Securities notice: 500,000 unlisted 50c options expired on 1 July 2016. Quoted shares stand at 891,204,960; remaining unlisted options are 1.2m and 2.5m, plus 5,333,333 and 20,940,032 performance rights.
Rouge Rock has an option to take 45% of AC/P50 and AC/P51 by funding the remaining work program, indicatively worth A$1.15m, to May 2018. MEO would keep 55% (subject to a 5% Far Cape option) and be free-carried. Joint farm-out planned for 2017.
4 July 2016asset acquisition disposition● NeutralMajor
MEO is assigning its 50% of WA-454-P to Origin, which then holds 100%, after failing to find a partner for the remaining 20%. Back-dated to December 2015, it avoids all 2016-17 costs including the Breakwater-1 well. Shifts focus to onshore Cuba.
TAG Oil has completed buying Kea's 70% of PEP51153 in New Zealand and becomes operator, resolving the liquidation-driven uncertainty. MEO keeps 30%. Work program revised: gravity data by March 2017, then one well or surrender by February 2018.
Beehive reprocessing and inversion in WA-488-P (MEO 100%) is complete, and MEO says results exceeded expectations and support a Carboniferous carbonate reservoir with shale seal. Resource table unchanged (best case 558 MMboe); farm-out effort planned for second half of 2016.
Link to a video interview with the Managing Director discussing Cuba Block 9, ahead of its prospectivity assessment release, and progress at WA-488-P. No new figures or results in the announcement itself.
April 2016 corporate presentation describing a strategy focused on Cuba Block 9, low-cost Australia/NZ activity and fiscal discipline. It appears to repeat known positions; the text provided is truncated, so no new figures can be reported.
Early reprocessing of old seismic over the Beehive prospect (WA-488-P, MEO 100%) shows markedly better data quality, which MEO says supports its interpretation. Full work is due mid-2016 and a renewed farm-out is planned for the second half. Resource figures are unchanged (best case 558 MMboe Carboniferous).
Half-year to 31 December 2015: loss of A$1.37m versus A$7.28m a year earlier, which had included exploration write-offs. Mainly administration costs. Update on permits repeats known positions; Origin to fund 80% of Breakwater-1.
29 Feb 2016capital raising announcement▲ GoodMajor
MEO raised A$1.4m by placing 140,716,573 shares at A$0.01 with London-listed Leni Gas Cuba, which becomes its largest shareholder at 15.8%. Funds go to Cuba Block 9 exploration, lifting cash to about A$5.0m.
What it means for a shareholder
141m new shares at A$0.010 to raise about A$1.4m. That's 16% dilution: every existing holder's slice gets 16% smaller. If you held A$1,000 of shares (100,000 at the issue price), your slice goes from 0.0133% to 0.0112% of the company. To keep it you'd need 18,750 more shares - about A$188 at the issue price.
Kea's liquidators agreed a conditional sale of its 70% in PEP51153 to an unnamed regional operator. MEO will not use its pre-emption rights, accepts the buyer as operator and withdrew its own bid to operate. MEO's 30% is unchanged.
Review of old Block 9 wells in Cuba found several recovered oil, such as Guadal-1 (over 30 barrels of light oil on test) and Marti-5. Seismic reprocessing has begun, with the prospectivity assessment due by mid-2016. These are historical results, not new drilling.
Senior staff accepted a 20% cut in cash pay in exchange for 20,940,032 performance rights, saving about A$200,000 a year. The rights vest 31 January 2017 and convert to shares at no exercise price, so they add dilution.
Following Kea's liquidation, MEO exercised its contractual right to become operator of PEP51153, subject to regulatory approval. Its interest stays at 30%.
Kea Petroleum, operator of PEP51153 and seller of its 70%, has appointed liquidators. MEO's 30% is unaffected, but it is unclear how this affects the pending sale of Kea's 70% (named here as to Puka Petroleum Limited), which had not completed.
9 Dec 2015regulatory community update● NeutralMajor
Regulator approved a 12-month suspension and extension of WA-488-P (MEO 100%), with Year 2 now ending 21 November 2016. Beehive drilling is deferred to 2017 while 150km of seismic is reprocessed; MEO plans to farm down up to 80%.
MD Peter Stickland signed an open-ended employment agreement from 1 December 2015. Fixed pay is A$400,000, with 20% (A$80,000) taken as performance rights, cutting cash pay to A$320,000. Continues the cost discipline theme.
Government support (Major Project Facilitation) for Tassie Shoal will not be renewed after 31 December 2015, as it is considered unlikely to be needed soon. Core environmental approvals remain, valid to 2052 for the methanol project. MEO says it can re-apply later.
AGM presentation by the MD: share price 1.6 cents, market cap A$12m, net cash A$5.2m. Lists the year's actions, including a 60% overhead cut, Block 9 secured and the Mosman bid defended. Mostly repeats known facts.
20 Nov 2015director officer appointment● NeutralMajor
Andrew Purcell is proposed to become Chairman from the end of the 25 November 2015 AGM, replacing the resigning Greg Short. Resolves the open question of who would succeed Short, flagged on 30 September.
November 2015 presentation restating the portfolio: share price 1.7 cents, market cap A$12.8m, net cash A$5.2m at 30 September. Repeats Cuba Block 9, Shannon (best case 5.3 mmstb, 100%) and Beehive themes. No new information.
