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??
MOG Price at posting:
31.0¢ Sentiment: Hold Disclosure: Held
