Past year: ▼ 77%(0.30c – 1.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
13 Dec 2007regulatory community update● Neutral
Seismic acquisition has begun on the Northwest Shelf permits: the Orient Explorer started 250 sq km of 3D over WA-360-P and WA-361-P, about 18 days, then 250 line km of 2D in WA-359-P. Reprocessing of the Rosie 3D over the Zeus feature is starting. Continues the 2 Nov plan.
12 Dec 2007capital raising announcement▲ GoodMajor
MEO placed 50 million shares at A$1.25 to raise A$62.5m before costs, heavily oversubscribed. Funds go to production testing, about 800 sq km of new NT/P68 3D seismic (March 2008), Northwest Shelf seismic, LNG and methanol project studies, and contingency. Earlier funds already covered dry-hole costs.
What it means for a shareholder
50.0m new shares at A$1.25 to raise about A$62.5m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (800 at the issue price), your slice goes from 0.000238% to 0.000207% of the company. To keep it you'd need 119 more shares - about A$149 at the issue price.
Create a free account to see this worked out for your own holding.
12 Dec 2007investor presentation▲ Good
December investor update. Heron-2 hit the Elang/Plover (top Elang 3,929m, about 237m high to Heron-1) with positive gas readings, then stopped at 3,983m on mud losses of up to 60 bbl/hr. It also shows downstream project NPVs (LNG US$2.5b, methanol US$950m) and the raising's use of funds.
7 Dec 2007drilling progress report● Neutral
Heron-2 weekly report no. 8: depth 3,912m, just above the Elang/Plover target, with the bit being changed to drill faster. Drilling is due to resume 9 December toward about 4,260m. Repeats the Epenarra test approval; no new results.
6 Dec 2007well test result▲ GoodMajor
Partners approved a production test of the Epenarra Darwin Formation in Heron-2, citing gas saturation over 50m of Facies C (3,109-3,159m), no CO2 in mud gas and 5-12% porosity. It follows the 27 Nov logs. The test can only occur after drilling, and possible testing, of the deeper Plover.
30 Nov 2007drilling progress report● Neutral
Heron-2 weekly report no. 7: 9⅝in casing is run and cemented at 3,360m. The rig is testing the blow-out preventer for high-pressure operation and expects to start the 8½in hole over the weekend. The Elang/Plover top is prognosed around 3,900m. No new results.
28 Nov 2007investor presentation● Neutral
AGM presentation largely restating known facts: Heron-2 has 9⅝in casing being set at 3,360m, with positive gas and reservoir indications in the Darwin Formation (Epenarra), and an 8½in hole is planned to about 4,300m. No new figures.
27 Nov 2007drilling result▲ GoodMajor
Heron-2 logs through the Darwin Formation preliminarily indicate Facies C is gas bearing, and 18 side-wall cores were taken. Partners are reviewing the data before deciding on flow testing. MEO says it still cannot confirm gas quality or a recoverable resource until gas is recovered.
23 Nov 2007drilling progress report▲ GoodMajor
Heron-2 hit the top of the Darwin Formation at 3,062m, 62m higher than predicted, with elevated gas readings in the mud. MEO calls this encouraging but says it cannot yet confirm gas quality or a recoverable resource. Logging and testing are still needed.
20 Nov 2007drilling progress report● Neutral
Heron-2 is drilling the 12¼-inch hole to 3,440m. MEO expects it to reach the predicted gas-bearing Epenarra Darwin Formation on 22 November 2007. No results yet.
15 Nov 2007drilling progress report● Neutral
Heron-2: 17½-inch hole finished at 2,125m and 13⅜-inch casing cemented. The rig is switching to synthetic mud and preparing for high-pressure operation. The 12¼-inch hole to 3,440m starts around 17 November, with the Darwin Formation top predicted at 3,124m.
9 Nov 2007drilling progress report● Neutral
Heron-2 is drilling the 17½-inch hole at 1,950m in the Vee Formation, toward 2,100m, with 13⅜-inch casing due to be set on 10 November. No hydrocarbon results yet.
9 Nov 2007investor presentation● Neutral
November investor update largely restating known facts. Heron-2 casing is due 10 November and the Darwin Formation is expected around 20 November. It cites about 11 Tcf of potential gas-in-place in NT/P68 and the new Northwest Shelf permits.
8 Nov 2007price query● Neutral
MEO said Santos Limited had sold its remaining holding of about 12.3 million MEO shares, placed by Tolhurst to Australian funds and private clients. Heron-2 was drilling the 17½-inch hole at about 1,670m.
2 Nov 2007contract award● Neutral
MEO signed a Letter of Award with PGS for 3D seismic (about 250 sq km) plus 250 line km of 2D over its new Northwest Shelf permits, starting around 1 December 2007. Reprocessing of 600 sq km of existing 3D data over the Zeus feature went to Dayboro Geophysical.
2 Nov 2007drilling progress report● Neutral
Heron-2: 20-inch casing landed and cemented, and a 15,000 psi blow-out preventer is being installed for the higher pressures predicted in the Plover sandstones. Drilling of the 17½-inch hole to 2,200m is about to start. No results yet.
29 Oct 2007annual report● Neutral
MEO's 2007 Annual Report. The extract shows Cambrian holding 21.31% and Santos 5.43% plus 0.75% in a second holding. It lists A$98.5m raised and the new Northwest Shelf interests. The extract gives no financial figures.
25 Oct 2007drilling progress report● Neutral
Heron-2 weekly report: the 26-inch hole is at 990m, heading to 1,100m, with 20-inch casing to be set next. Drilling at 14m/hr. No hydrocarbon results yet; pre-drill estimates unchanged.
25 Oct 2007farm in farm out agreement● Neutral
Cue Energy confirms the same farmout: MEO earns 60% in each of the three Northwest Shelf permits and becomes operator, up to 70% if it funds the first well. Cue says it is subject to government approvals, a condition not in MEO's release.
25 Oct 2007farm in farm out agreement▲ GoodMajor
MEO farmed into three Northwest Shelf permits (WA-359-P, 360-P, 361-P) operated by Cue, earning 60% and becoming operator by funding seismic; up to 70% if it funds a well. Targets the Zeus prospect, with 5-15 Tcf in-place potential per MEO. Drilling likely 2009.
19 Oct 2007drilling progress report● Neutral
Heron-2 weekly report: after about five days of rig commissioning and repairs, the 26-inch hole began on 19 October. Well is high pressure/high temperature. Pre-drill mean gas-in-place is 5,620 Bcf for Epenarra, 3,790 Bcf Heron North, 1,750 Bcf Heron South. No results yet.
19 Oct 2007price query▼ BadMajor
MEO says a substantial shareholder sold about 3.5m shares on market and refused to state its intentions. The company is worried about the share price impact and has begun a strategy to ensure any offer for the company reflects full value. Seller not named.
15 Oct 2007drilling spud▲ GoodMajor
Heron-2 spudded late on 12 October 2007 in NT/P68 (MEO 90%, Petrofac 10%). The 30-inch casing is set at 108m; planned depth is 4,300m, testing the Epenarra Darwin Formation and deeper Elang/Plover. Heron-3 horizontal well follows depending on results.
5 Oct 2007drilling progress report● Neutral
The West Atlas rig arrived safely in Darwin on 4 October and was unloaded. A 36-hour tow to the Heron-2 site is due to begin shortly, with spud still expected around 11 October. NT's Chief Minister cited about A$100m of drilling spend by Christmas.
5 Oct 2007admin correction● Neutral
Amended re-release of the rig arrival notice, correcting the tow start date to 6 October from 5 October. Spud still expected around 11 October. Nothing else changed.
5 Oct 2007admin correction● Neutral
Correction to a director's interest notice for Andrew Rigg: the date of change should read 26 September 2007, not 28 July 2007. Administrative only.
3 Oct 2007regulatory community update● Neutral
NT government consented to drill Heron-2 and the safety case was approved, completing approvals. The rig's shipping delays push the expected Heron-2 spud from 6 to about 11 October 2007.
28 Sept 2007director officer appointment● Neutral
John Newton resigned as a director. He is Executive Chairman of Xtract, which bought Cambrian, MEO's largest shareholder; the company says this could be seen as compromising his independence. Board falls to five.
28 Sept 2007other● Neutral
Cambrian (owned by Xtract) sold 5m MEO shares at A$1.10 to institutions including Lehman Brothers, cutting its stake from 22.8% to 21.3% (71.4m shares). The West Atlas rig left Singapore for Darwin, with Heron-2 spud still expected around 6 October.
27 Sept 2007annual report● Neutral
Annual financial report for the year to 30 June 2007, with directors' report and review of operations. The extract is truncated and gives no financial figures, so nothing new can be stated from it.
