MOG 0.00% 0.5¢ moby oil & gas ltd

Locky,My understanding. MEO needs to irrevocably, absolutely...

  1. 2,015 Posts.
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    Locky,

    My understanding.

    MEO needs to irrevocably, absolutely commit to drilling by 31 December (although there have been other dates bandied about). The actual drilling needs to take place up to 12 months later.

    So if MEO commit to drilling, then regardless of FIRB approval or not or whether they get farm in or not, they need to drill, a large financial commitment.

    My simple question is is it absolutely locked in that MEO will agree to a 31/12 financial commitment to drill not knowing if the farm in is going to be apporved by the Farminee Board or the FIRB? Is the MEO board in effect going to take a large financial gamble that 1) FIRB approval is forthcoming or 2) get another farm in partner 3) that they will find funding to go it themselves with a cap raising or debt or 4) ask MOG/CUE for an extension (really?).

    I think these are reasonable Qs given we dont know who the farminee is and the drafting of the drilling commitment. All adds up to positives for MOG imo. Why cant they simply just ask for revised bids from all the other farminees? No need to conduct due diligence twice. Even if the terms are not as good MOG should walk away with more than 15% as currently shared with MEO.
 
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