re: Ann: MEO: Acquires additional 5% equity i... Ron,Not too...

re: Ann: MEO: Acquires additional 5% equity i... Ron,

Not too different to the Petrobras deal value, if you exclude the follow up carry upon any success.

Petrabras are paying USD 80 mm through the first well for 50% of the outcome. MEO are paying USD 7mm through the first well for 5% of the outcome.

You could see the small extra, plus the follow up liability as payment by Petrobras for the side agreements, the control premium and generally the strategic LNG opportunity.

MOG would have had plenty of opportunity to flog the 5% stake to all the ASX usuals plus, and quite a few are well cashed up, still looking for a decent fairly priced project.

Therefore we probably need to accept the price as within the fair value range. My initial reaction was also that it looked a bit of a firesale. Would of course hate to see what would happen to MEO's sp if fair value took hold.

To've raised USD7mm with script, at a discount to current mc, would have been worse for MOG holders.

Discl: Patient/steady CUE holder. Can do without the rollercoasters.

EL