No doubt that they would want to retain it if possible, but they are in a hard place; with more funding needed to get SM71 to production, and the clock ticking. I don't think that there is any coincidence between the lack of news coming from MEL and the application for 4 further blocks in the GoM by BYE. They were successful for 3 blocks and have got 6 days to resubmit a bid for their rejected application for a new lease. If and when the new bid is accepted I see MEL farming into all four new blocks plus SM71, in return for providing funding to get SM71 into production. 3-4 million for 10% of the 54 blocks and SM71 would be a fair deal in my mind.
MEL Price at posting:
4.0¢ Sentiment: Hold Disclosure: Held
