Past year: ▼ 77%(0.30c – 1.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
28 Apr 2010regulatory community update▲ GoodMajor
NT/P68 is renewed for 5 years (3-year primary, 2-year secondary term) with 50% of the area relinquished. MEO holds 100% of the 5,915 km2 permit with the Heron and Blackwood gas discoveries. Appraisal drilling is planned for 2011, subject to finding a farm-in partner.
22 Apr 2010investor presentation● Neutral
CEO conference presentation on MEO's LNG and methanol strategy, covering Bonaparte Basin gas discoveries and the Tassie Shoal hub concept. It repeats known facts, with no new announcements in the excerpt.
15 Apr 2010investor presentation▲ Good
In an interview, the CEO calls the Petrobras deal transformational, saying existing A$39.3m cash is freed for other ventures. MEO receives about US$39m on approval and a further US$31.5m bonus if Artemis succeeds. Largely repeats the farm-in terms.
15 Apr 2010quarterly activities report▲ Good
March quarter: WA-360-P farm-in with Petrobras finalised after quarter-end, a rig option secured for Artemis-1 in late 2010, and NT/P68 renewal accepted for 5 years. Cash A$39.4m. Priorities are regulatory approvals, a rig contract and new ventures.
15 Apr 2010quarterly activities report● Neutral
Appendix 5B for the March quarter: cash A$39.4m at 31 March, with operating and investing outflow of A$876k. Next quarter's outflow is estimated at A$250k. No debt; 477.2m shares on issue.
14 Apr 2010farm in farm out agreement▲ GoodMajor
MEO signs a binding WA-360-P farm-in with Petrobras, resolving the long delay. Petrobras earns 50% by funding the first well up to US$41m, pays a US$31.5m bonus plus about US$7.5m past costs, and MEO keeps 20%. Subject to FIRB approval.
14 Apr 2010joint venture update▲ Good
Moby welcomes the Petrobras farm-out and says it has agreed that integrated LNG is a permitted development scenario and committed its gas share to such a project. Its 15% free carry stands. This indicates the side agreements were resolved with Moby on board.
24 Mar 2010joint venture update▼ Bad
Cue says the farminee's proposed changes to the joint operating agreement disadvantage Cue and its shareholders, and discussions continue. Cue's 15% free carry through Artemis-1 is unaffected. This identifies Cue as the holdout.
22 Mar 2010joint venture update▼ BadMajor
The WA-360-P farm-in is still unsigned: one of the other three parties declined the side agreements on 17 March, leaving 85% alignment, which the farminee is weighing. MEO secured a rig option for a Sept-Dec 2010 spud and says its funds can cover Artemis-1.
22 Mar 2010listing compliance notice● Neutral
ASX lifts the suspension of MEO shares following the WA-360-P farm-out update. Administrative notice with no new substance of its own.
22 Mar 2010joint venture update● Neutral
Moby, holder of 15% of WA-360-P, says it supports the farm-out and has no issues with the farminee's requests. It confirms its free carry through Artemis-1 is unaffected. Points to the holdout being a different partner.
17 Mar 2010listing compliance notice▼ Bad
MEO's shares are suspended at its request pending an announcement. Its letter says one WA-360-P joint venture participant has not signed two side agreements that must be executed before the finalised farm-in agreement can be signed. Suspension expected to last no more than three trading days.
25 Feb 2010half year report▼ Bad
Half-year to 31 December 2009: net loss A$3.08m versus a A$1.35m profit a year earlier, which had included A$3.6m of exchange gains. Excluding exchange effects, the loss was A$2.87m, with lower interest income and higher exploration expense.
11 Feb 2010joint venture update● Neutral
MEO says the WA-360-P farm-in is delayed: the farminee's legal review is advanced, with only minor issues, and FIRB filing can only follow signing. Two rig options exist for Artemis-1 in 2H 2010, and MEO is screening new ventures.
14 Jan 2010quarterly activities report▲ Good
December quarter: MEO raised A$26.9m, exercised the WA-360-P well option, let WA-359-P lapse, regained 100% of NT/P68 and lodged its renewal. Farminee is approved but binding agreements remain unsigned. Up to 50% of WA-360-P is on offer; cash A$40.3m.
14 Jan 2010quarterly activities report▲ Good
Appendix 5B: cash rose to A$40.3m at 31 December from A$15.6m, after A$27.0m of share proceeds less A$1.2m costs. Quarter operating and investing outflow was A$1.1m. Next quarter's outflow is estimated at A$1.0m; no debt; 477.2m shares on issue.
7 Jan 2010price query● Neutral
Responding to ASX, MEO says shares rose from 44.5c to 53c on 6 January with no undisclosed news. It offers speculation on the WA-360-P farm-in as the only explanation and confirms binding agreements are not yet signed.
4 Jan 2010asset acquisition disposition● Neutral
Cue says it will receive a 30% interest from MEO in WA-359-P, lifting it to 50% and operator again, with Exoil holding 50%. Repeats MEO's decision to hand back the permit.
4 Jan 2010asset acquisition disposition▼ BadMajor
MEO let its WA-359-P drill option lapse on 31 Dec 2009, saying studies had not de-risked the Hephaestus lead enough to fund the well. Its 60% goes back equally to Cue and Exoil, so MEO exits the permit.
21 Dec 2009joint venture update▲ Good
Moby confirms MEO has irrevocably committed to fund 100% of the first WA-360-P well. Moby keeps its 15% free carry and will issue 120m shares to Gascorp. Resolves the risk of MEO having to transfer 35% to Rankin Trend.
21 Dec 2009joint venture update▲ Good
Cue, a WA-360-P partner, announces MEO has irrevocably committed to drilling Artemis-1, with Cue holding a 15% free carry. It repeats MEO's 12 Tcf recoverable potential. Duplicates the MEO and Moby news.
21 Dec 2009farm in farm out agreement▲ GoodMajor
MEO's preferred farminee has board approval to complete the WA-360-P farm-in, subject to Australian approvals including FIRB; binding documents are not yet signed. MEO triggers its well option, securing 70%, and begins rig talks to drill Artemis-1 in the second half of 2010, keeping at least 20% after farm-out.
1 Dec 2009other● Neutral
Securities update: 477,220,955 shares on issue after the November placement, and 3.4m 50c options lapsed on 30 November. Administrative, no new substance.
27 Nov 2009admin correction▼ Bad
After ASIC and ASX concerns that it may be misleading, MEO explains the Artemis per-share values in its 2 September presentation: A$3.65 unrisked and A$1.17 risked, based on 12 Tcf, 20% residual interest, US$0.50/Mcf and 32% chance of success. It warns they should not be relied on.
20 Nov 2009admin correction● Neutral
Lodges the amended company constitution, changed by special resolution at the 18 November 2009 AGM. Administrative filing; the excerpt does not say what changed.
18 Nov 2009investor presentation● Neutral
Technical talk after the AGM on the Artemis prospect in WA-360-P, covering seismic, depth conversion and analogue fields, with the East Artemis target put at about 12 Tcf. Restates known resource estimates; no new data or results.
18 Nov 2009investor presentation● Neutral
AGM presentation reviews the year and strategy: Tassie Shoal approvals, NT/P68 renewal lodged and 100% regained, and the WA-360-P farm-in awaiting farminee board and regulatory approvals. Largely repeats known facts; no new results.
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.
Create a free account to see this worked out for your own holding.
16 Nov 2009farm in farm out agreement● Neutral
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.
6 Nov 2009joint venture update● Neutral
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.
