Each one in plain English, with the numbers worked through for a shareholder.
18 Nov 2009capital raising announcement● NeutralMajor
MEO raises about A$27m by placing 59,898,385 shares at 45c (14.35% of capital) to institutions, to fund the WA-360-P well commitment due by 31 Dec 2009 while the farm-in is finalised. No share purchase plan offered to existing holders, who are diluted.
What it means for a shareholder
59.9m new shares at A$0.450 to raise about A$27.0m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (2,222 at the issue price), your slice goes from 0.000532% to 0.000466% of the company. To keep it you'd need 319 more shares - about A$144 at the issue price.
MEO says the preferred WA-360-P farminee is a major international energy company entering Australia for the first time, with commercial terms agreed including integrated LNG arrangements. Its board must approve in mid-December and FIRB approval is needed. MEO cannot guarantee completion, so the earlier AGM timing has slipped.
Moby restates its Rankin Trend deal: Gascorp gets 120m Moby shares if MEO elects to fund 100% of a WA-360-P well, otherwise 60m shares and Rankin Trend can take a further 35% (to 50%). Repeats the 31 Dec deadline risk for MEO; the text's date reads 1 January 2009, apparently a typo.
MEO says it has chosen a preferred WA-360-P farminee, with final due diligence the week of 26 October and binding agreements expected before the 18 November AGM. Identity and terms stay confidential. Progress on the delayed farm-out, but nothing binding yet.
19 Oct 2009asset acquisition disposition▲ GoodMajor
MEO regains 100% of NT/P68 as Petrofac withdraws from its partly earned 10% and the Tassie Shoal heads of agreement end. Petrofac gets an option to 30 June 2011 for 5%. Renewal needs 50% relinquishment of the 12,000 km2 permit. Resolves the Petrofac thread.
2009 Annual Report. The chairman calls Zeus-1 failing to find hydrocarbons the major disappointment, and says the company is assessing farm-in partners for Artemis-1. The board favours farming down permits and redeploying value into other acreage.
Moby Oil & Gas, which is buying Gascorp's 15% WA-360-P holder Rankin Trend, amended its deal. If MEO gives no binding drilling commitment by 31 Dec 2009, MEO must transfer 35%, lifting Rankin Trend to 50%. Adds deadline pressure on MEO.
MEO misses its 30 September target: WA-360-P farm-out talks are incomplete and now expected to conclude during October. It says considerable progress has been made. This is a slip in the timetable, still with no partner named.
Forum talk presents the Tassie Shoal LNG plant as an alternative to floating LNG. It cites a Worley Parsons-based estimate of US$2,091m versus US$3,180m for a Darwin plant, a saving of US$1,089m. Concept restated, no new deal.
Statutory financial report for the year to 30 June 2009, covering directors' report, remuneration and accounts. The excerpt gives no figures, so the result, including any Zeus-1 write-off, cannot be confirmed from this text.
Open Briefing interview with the MD restates strategy: build value in projects, then sell down to quality partners. East Artemis is put at 20.3 Tcf gas-in-place, 12.0 Tcf recoverable; WA-360-P farm-out is expected to conclude by end September. Mostly repeats known facts.
Sydney investor briefing shows a 60c share price (14 Sept), A$250m market cap and A$17.2m cash at 30 June. Content repeats earlier presentations, including WA-360-P farm-out funding 'in progress' and NT/P68 JV restructuring. Mostly repeats known facts.
SEAAOC conference talk argues for Tassie Shoal as a Timor Sea gas processing hub, with methanol turning CO2 into a sellable product. It repeats the approvals in place and Major Project Facilitation status to December 2011. No new results or deals.
RIU Good Oil Conference presentation shows a 58.5c share price, A$244m market cap and A$17.2m cash at 30 June. It repeats the Tassie Shoal, NT/P68 and ~12 Tcf East Artemis story, with farm-out funding 'in progress'. Mostly repeats known facts.
The window for indicative WA-360-P farm-in offers has closed. MEO is evaluating them before negotiating a binding deal, and says it remains on track to complete a farm-in by 30 September. No partner named.
MEO raised Artemis pre-drill mean gas-in-place: 10.8 Tcf for Calypso sands and 9.5 Tcf for Legendre sands, from 9.5 Tcf before. Geological chance of success is 32%. 20 parties remain; offers due 31 August, farm-out targeted by 30 September.
July investor update shows a share price of 35.5c, market cap A$148m and cash A$17.2m. It reports 26 majors/national companies in the WA-360-P farm-out interest and expects to conclude the farm-out this quarter. Mostly repeats known facts.
WA-360-P data room closing extended to 14 August so several companies can review the new Artemis 3D data. MEO says the data has significantly de-risked Artemis and is confident the 9.5 Tcf estimate will rise.
Preliminary interpretation of the new Artemis 3D confirms it as an attractive target, with a larger structure and amplitudes consistent with a possible gas-water contact. Gas-in-place will likely exceed 9.5 Tcf. MEO says it is confident of a farm-in this quarter; offer deadline may be extended.
Securities notice: 2m Mineralogy options and 2m former-director options lapsed in the June quarter. Shares on issue unchanged at 417,322,570. Administrative.
Processing of the 250 km2 Artemis 3D seismic survey finished on schedule, with data in house 30 June. It is key to de-risking the ~9.5 Tcf Artemis prospect; indicative farm-in offers remain due 31 July. Meets the end-June timetable.
Second ASX price query reply in June: MEO has no undisclosed information. It notes largest shareholder Xtract sold down from 11.57% to 6.00%, likely causing the price retreat from 22c. Farm-out offers remain due by 31 July.
Engineering manager's SPE Melbourne talk describes the Tassie Shoal methanol and LNG hub design, noting Major Project Facilitation status until December 2011. Projects are ready for FEED in 2010 only once gas supply is confirmed. Repeats known facts.
Replying to an ASX query on the rise from 14c to 22c, MEO says it has no undisclosed information. It points to Artemis 9.5 Tcf, APPEA interest from large companies, and indicative farm-in offers due end July. A Zeus-1 write-off is likely.
CEO's APPEA plenary presentation shows Artemis as a possible Pluto-Wheatstone extension with 9.5 Tcf mapped in WA-360-P, and seeks a farm-in partner for a 2010 well. Tassie Shoal is ready for pre-FEED once gas supply is secured. Repeats known facts.
May investor update pitches MEO's Bonaparte and Carnarvon gas permits and the Tassie Shoal hub. It cites Artemis at over 9 Tcf gas-in-place, cash of A$21.8m, and a WA-360-P farm-out underway and NT/P68 imminent. Largely repeats known facts.
The federal government renewed Major Project Facilitation status for the Tassie Shoal methanol and Timor Sea LNG projects, easing approvals. MEO still needs gas supply and is farming out part of NT/P68 to fund 2010 drilling. No funding or construction commitment.
Re-release of MEO's 27 April reply to the ASX query on the 24 April price rise (7.6c to a high of 10.5c), now with the ASX letter attached. Content is unchanged: no undisclosed information.
Replying to an ASX query on the 24 April price rise, MEO says it has no undisclosed information. It points to the Artemis 6-9 Tcf estimate, the farm-outs and cash of about 5c a share, and flags a likely Zeus-1 exploration write-off this financial year.
Securities notice: 2,000,000 options held by former non-executive directors lapsed in the March quarter. Shares on issue remain 417,322,570. Administrative.
