wiper s..You are correct that MEO will "pay" for the proposed...

wiper s..

You are correct that MEO will "pay" for the proposed well in Artemis, as outlined in the MOG Ann. today :-


"The MEO farmin terms provide that, by 31 December 2009, MEO must either commit to the drilling of a well in WA-360-P or reassign a 35% interest in the permit to each of Rankin Trend and Cue.

By making a commitment to drill a well, MEO will thus be required to meet all of the costs of that well, including those costs attributable to each of the 15% permit
interests held by Rankin Trend and Cue."


As I understand this arrangement, imo MEO would now have the choice to continue with the current Farmout to raise sufficient cash for the well OR sign over ALL their 70% interest to be divided between CUE and Rankin Trend.

The latter would be most unlikely, surely, from MEO/shareholders point of view. Hence the current MEO Artemis Farmout will presumeably continue and the deal with MOG/ Rankin done.

The timimg for this appears to be limited by the need to "commit to the drilling of a well" by 31 Dec 2009 (end date) and allow time for MEO to complete Farmout to raise the cash.

The proposed arrangement between MOG/Rankin/Gascorp is not clear to me - seems that this proposal may be an "internal" deal to tie up the MEO percentage of the Artemis Farmout.

Any ideas??