20 May 2015price query● Neutral
ASX queried the MEO share price rise from 1.7 to 2.2 cents. MEO said it knew of no unannounced information, noted media on Cuba and recent permit news, and said final WA-488-P farm-in documents were expected shortly.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 May 2015business combination● Neutral
Mosman lodged a second supplementary bidder's statement correcting an earlier error: its 1-for-5 offer for MEO has been unconditional since 5 May 2015, when the Mosman shareholder approval condition was freed. Corrective only; no new terms.
15 May 2015regulatory community update▲ GoodMajor
MEO accepted the regulator's offer to renew AC/P50 and AC/P51 (100%, Vulcan Sub-basin) for five years. Firm work is only studies and seismic reprocessing for three years; one well per permit (about A$20m each, indicative) falls in discretionary Years 4-5. Resolves the pending renewal.
13 May 2015business combination● Neutral
Mosman's first supplementary bidder's statement promotes its 1-for-5 offer, valued at A$0.0205 per MEO share (36.6% premium to 30 April close), open to 12 June. Mosman says over 466 holders accepted and it would seek a MEO board seat if it holds a minority stake.
12 May 2015regulatory community update▲ Good
The regulator approved a six-month extension of NT/P68 Permit Year 5, now ending 26 October 2015, rather than the earlier 26 April expiry. MEO will focus on its 100% Heron area and may apply for a five-year renewal, with 50% relinquishment. Work commitment is about A$550,000.
6 May 2015business combination● Neutral
Mosman declared its offer free of the last condition, Mosman shareholder approval, so the 1-for-5 bid is now unconditional. Mosman's voting power in MEO was 1.2829% at 5 May. Shareholders who accept are now bound, subject to withdrawal rights.
4 May 2015business combination● Neutral
MEO's board recommends shareholders REJECT the improved Mosman offer of 1 share per 5, closing 12 June 2015. It cites Mosman's cash doubts, AIM trading costs and MEO's recent milestones, and says it is in talks with third parties, with no guarantee of a better proposal.
1 May 2015business combination● NeutralMajor
Mosman raised its offer to 1 Mosman share per 5 MEO shares (from 1 per 10), freed it of all conditions except Mosman shareholder approval, and extended it to 12 June 2015. Mosman's voting power was 1.606% at 30 April.
30 Apr 2015other● Neutral
MEO's second supplementary Target's Statement reports the WA-454-P and WA-488-P work program approvals and says about 10 million new Mosman shares appear to have been issued. Directors still recommend REJECT.
29 Apr 2015quarterly activities report● Neutral
Quarterly summary: cash A$7.2m, about A$1m above forecast; overheads cut 60%. Cuba Block 9 approval expected in 2-3 months. Puka stays shut in; Shannon prospect (NZ) is being offered to a funding partner for a possible second-half 2015 drill. Board still says reject Mosman.
29 Apr 2015quarterly activities report● Neutral
Quarter to 31 March 2015: cash was A$7.245m, down from A$9.727m, with operating outflow of A$2.575m including Neon merger costs. A$1.8m is forecast outflow next quarter, including A$600k Mosman defence costs. No debt; no shares issued.
22 Apr 2015regulatory community update▲ Good
The regulator approved a six-month suspension and extension of WA-488-P Permit Year 2, allowing more seismic work and possible 3D seismic over Beehive. If a further variation is accepted, Beehive-1 would be drilled before November 2017. MEO is shown at 70% after the 30% farm-out.
21 Apr 2015regulatory community update▲ GoodMajor
The regulator approved the WA-454-P variation: Permit Year 4 extended six months and the Breakwater-1 well deferred to Permit Year 6, to be drilled before 8 December 2017. This resolves the 12 March application; the well is estimated at A$20m (100% basis).
20 Mar 2015other● Neutral
The chairman's letter rebuts Mosman's mailings and repeats the recommendation to REJECT. It says Mosman had A$2m cash at end-February and a finding cost of over A$260 per barrel in New Zealand. No new MEO developments.
18 Mar 2015other● Neutral
MEO lodged a supplementary Target's Statement to the Mosman bid, adding the WA-488-P farminee approval and WA-454-P variation plans. Directors continue to recommend REJECT, citing Mosman's going-concern doubt, an 18.8% discount and possible dilution of up to 21.1 million shares.
17 Mar 2015farm in farm out agreement▲ GoodMajor
The unnamed international farminee has received final board approval to exercise its option for 30% of WA-488-P (Beehive). Final documents are due in about 8 weeks, subject to regulatory approvals. This confirms the 18 February option; further options could leave MEO with a carried 20%.
16 Mar 2015business combination● Neutral
Mosman extended its offer period from 24 March to 8 May 2015, with the conditions-status notice date moved to 1 May. Shareholders who already accepted may withdraw within a month. The bid remains conditional and the board still recommends rejection.
12 Mar 2015regulatory community update● Neutral
The WA-454-P joint venture will apply to extend Permit Year 4 by six months and push the Breakwater-1 well commitment to Permit Year 6. If approved, the well must be drilled before 8 December 2017. Approval is not guaranteed; the delay means more seismic work first.
3 Mar 2015investor presentation● Neutral
MEO presentation setting out the board's recommendation to reject the Mosman takeover. Repeats arguments already in the Target's Statement; the readable text carries no new figures.
26 Feb 2015business combination● Neutral
Mosman confirmed its bidder's statement was sent to MEO holders registered at 3 February 2015, and the offer is dated 24 February 2015. Administrative notice.
25 Feb 2015business combination● Neutral
Mosman began dispatching its replacement bidder's statement for the 1-for-10 offer for MEO. The offer is stated to close at 5pm WST on 24 March 2015 unless extended or withdrawn.
25 Feb 2015business combination● Neutral
MEO lodged its Target's Statement and the directors again recommend shareholders reject Mosman's offer. Cover notice only; shareholders are advised to take no action on Mosman's documents.
25 Feb 2015business combination● Neutral
MEO's Target's Statement formally recommends shareholders REJECT Mosman's 1-for-10 offer and do nothing with its documents. It follows the board's 29 January reasons for rejection. Full text was truncated, so no new figures are drawn from it.
25 Feb 2015business combination● Neutral
Mosman said ASIC approved Patersons Securities as the nominee to sell Mosman shares on behalf of foreign MEO shareholders who accept the offer. Administrative notice.
19 Feb 2015half year report● Neutral
Half-year loss to 31 December 2014 was A$7.28m, mainly A$4.3m of exploration write-offs and A$3.7m of administration costs, versus a A$119.8m loss a year earlier. Reiterates WA-454-P, Beehive and Heron plans and the Blackwood withdrawal.
18 Feb 2015farm in farm out agreement▲ GoodMajor
MEO signed an option deal with an unnamed international explorer for farm-ins to WA-488-P, AC/P50 and AC/P51. The farminee immediately took up 30% of WA-488-P (Beehive), subject to board approval; extra options could leave MEO with a fully carried well for 20%. Final documents due in about two months.
11 Feb 2015business combination● Neutral
Mosman lodged a replacement bidder's statement for its 1-for-10 takeover of MEO. ASIC allowed the offer to be dispatched up to 25 February 2015 rather than 11 February. Replaces the 28 January version.
9 Feb 2015asset acquisition disposition● NeutralMajor
MEO is withdrawing from the Blackwood gas discovery at no cost, handing it to Eni, because its 2C resource is too small to support the Tassie Shoal methanol project. Eni transfers its 50% of the rest of NT/P68, leaving MEO focused on Heron at 100%, subject to approvals.
3 Feb 2015security holder rights change● Neutral
MEO cancelled 3,000,000 unlisted 50c options (July 2016) and 350,000 performance rights. Shares on issue unchanged at 750,488,387. Housekeeping update.
2 Feb 2015other● Neutral
Mosman gave a formal notice setting 3 February 2015 as the date for deciding which MEO shareholders receive its bid documents. Administrative notice with no new substance.