boxing day sale - 50% off a 12tcf field in wa

The latest announcement on Friday is the equivalent of a boxing day sale in Moby's favor, if the MEO farmin deal doesn't go ahead.

Moby has gradually got a better deal on the contingency that MEO does not commit to the drilling by year end:
1. From nil, in that it did not meet the conditions of the orginal deal; to
2. No longer a condition, we get 50% of Artemis for 120M shares; to
3. The Latest, we get 50% of Artemis for 60M shares (50% off).

Obviously it is in Moby's favor, but my view is this deal is now more attractive if the MEO farmin falls over. It has already been disclosed that there have been more than one farmin suitors (and I think we talking several) and such there is demand there and I think this has only increased with the power plays since (WPL vs Chevron). If MEO fails for some reason (and I dont think it will) then MOG and CUE will look to renegotiate a farm in and cutting out the current middleman.

For example a post MEO deal might be: MOG and CUE free carried for 22.5% each (up from 15%), with the farmin partner having 55% (more than the 50% proposed now) and hypothetically NO cash outlay that MEO is looking for to cover its exploration costs. ON TOP OF A 50% DISCOUNT OF THE RANKIN TREND DEAL. I for one will be quietly cheering if MEO's deal falls over and I am sure Albers would be to. With that said I still have a smaller parcel of MEO if the result does go ahead and exceeds expectations. But knowing the money involved here; the heavy hitters involved and knowing MEO has less than 2 months now, anything is possible. The one sure thing though it is defineately a win/win now for MOG with Artemis.

The SPP at 18c only makes this more attractive imho. Buy one share then spin the wheel to see if you get a 10%; 20%; 30%; through to 100% discount on the second. Knowing that by the 17th of Nov. everyone should know the status of the farmin.

Whilst Artemis is the holy grail here, we shouldnt discount the other leases that are in the calender for drilling of which Moby has significant interests.