MEO Methanol Australia A26c 132m shares

[blacksheep]

From ASX April 1 '04: Methanol Australia Limited today announced the signing of a Joint Development Agreement (JDA) with Air Products and Chemicals, Inc. (NYSE: APD) to jointly pursue resolution of the remaining commercial and financial components of the Tassie Shoal Methanol Project. The project will be jointly developed by Methanol Australia and Air Products, with the JDA providing a funding mechanism to take the project to financial close, based on successful completion of key project milestones. The development effort will draw on the respective skills of each organization, working together as an integrated team on the technical, commercial and financial components of the project, including development of the financial structure necessary to raise the debt and equity funding for the project. Success in securing key gas supply and product off-take arrangements would allow the parties to proceed to front-end engineering and design (FEED) work, planned to commence in late 2004. Methanol Australia acknowledges the support and assistance of the Minister for Industry, Tourism and Resource Development, the Hon Ian Macfarlane and Invest Australia. The project was granted Major Project Facilitation status in December 2001 and Australian government support was a key ingredient in Air Products¡¦ decision to join the project. In 2002, Methanol Australia appointed Sumitomo Mitsui Banking Corporation, via its Australian subsidiary, Sumitomo Mitsui Finance Australia Limited, to identify a strategic partner who would provide specific expertise relevant to the project. Air Products is a Fortune 500 corporation with annual revenues of US$6.3 billion and 18,500 employees involved in operations in over 30 countries, and has extensive world-wide experience in the design, engineering, construction and operation of gas reforming and processing plants. Melbourne-based Methanol Australia aims to be the pre-eminent gas-to-liquid production company in Australia. It is recognized for its innovative and advanced engineering solutions aimed at exploiting some of Australia¡¦s vast offshore natural gas resources. Methanol Australia has developed the Tassie Shoal Methanol Project over the past seven years, providing considerable engineering definition for the facilities and gaining the necessary environmental approvals to construct and operate the facilities for the next 50 years. The Company was formed in 1994, has approximately 2000 shareholders and is listed on the Australian Stock Exchange. Further information can be found at the Company¡¦s website: methanol.com.au.

[bermuda]

Any one got any updated thoughts on this company.?
This company is about to go places.

[bermuda]

No one has replied. Perhaps this company is under the radar. It wont be for long.Two big drills coming up that could prove to be as big as what AED found in the Timor Sea.

Fantastic Board and Management and a really grunty 5 year plan.

[Crypto Crude]

Bermuda,
There is no doubt about it that this is the next AED in the making...
Timor sea is a great region to do business....
I will come back with information soon...
I am watching...

[Crypto Crude]

Bermuda,
I have taken your advice and I have been looking further into MEO...
I Like MEO, but they do have risks....
This is potentially the next company to have a highly valuable project in the Timor sea if it can sure up reserves in the October drilling program, which has two drills confirmed and possibly 3 in total... with a total resource of 14Trillion CF... which is mind boggling...
also condensate... and bulding a Methanol plant which is able to profit from Methanol which is a by product of natual gas...
possibility of further farmdown before drilling program starts as the first to drills are 110million in cost... MEO has large cash reserves, and recent JV partner has taken a 10% stake to pay 25% of costs, and cas choose to extend that to 37.5% for 15%stake...
latest market analysis valuation on the company does suggest further farm down announcement before Oct drilling program will come forward !!!
...
Yes discovery of gas in both Epeharra, and Heron was made in 1972 by Arco, and the quality of gas has been tested from the cores recovered at Heron-1...
... If MEO can sure up these figures of 14TCF, or even come close to doing that then methanol Australia will run like AED... the chart looks up and up... but we havenot gotten flow rates and MEO has been working years to get to this stage... MEO spent 10m on 3d seismic last year...
... If the first drill of Henron 2 comes up dry then this company will get dumped....
and if all plans out favourably over the 5 month drilling and production testing program, it still then wont go into production until 2012, which the first year after drilling program will be getting certified reserves... MEO looks rather simialar to what AED was like when it purchased assets in the same region which were previously discovered, and threw in a few extra wells to sure up a massive development project which is almost complete...

Bermuda,
Do you consider this drilling program coming up in OCT, to be close to a development program rather than an exploration program? would you consider the drills coming up to be production wells, or close to it?? remembering that they have already discovered...... and the recent hydrocarbon inclusion tests on the core recovered do interpret the quality of the gas....if these projects derisk further through this up and coming program, then there will be big returns to be made....Is there big big upside to reserves???
At this stage im not looking at putting any money on the market... this stock looks undervalued but with market risk then it maynot be the stock that shines but the market that rules with the iron fist... and because of that I will watch for a few more weeks...
currently around $1...

[The Plunger]

SC/Bermuda,

Good info guys.

Do you recall who it was at the chch convention that talked about MEO ? What's his screen name ?

I just can't get my head round this one - heinous mcap. Looks like they take it as a given that they're gonna hit paydirt with a monster flow on this "appraisal" drill and strike multiple Tcf. Lots of death by powerpoint slides showing floating LNG plants, sales agreements etc etc. It's dam hard to find any hardcore info on it. looked at HC but waste of time, just a bunch of complaints about a recent SPP and the usual ramping.

Maybe best just to leave alone, after all it's breaking that $1 rule, although it did tumble to the 70's the other day... missed that one as I was busy elsewhere !

[bermuda]

The Plunger,
Twas Bermuda who talked of MEO at the Chch convention.
I know a very astute Australian businessman who told me that MEO has the potential to go way past $5 through their forthcoming drilling programme .Plus he also forecasted $15 for AED within 12 months. Shrewd..where will that put NWE?

I nearly invested in them but didnt and just as well as I looked with horror when they dived to 72 cents during that awful week earlier this month.After a capital raising at a $1.00 I couldnt believe it.

I think I will just watch this one out and concentrate on BOW which has just secured a letter of intent to drill 7 wells with SANTOS with BOW free carried in BOW's permit. That's the way to do oil business. Farm out - no dilution from capital raising and enough grunt in a find to give the shareprice a good rattle.

[Crypto Crude]

Plunger, yes it was bermuda talking about MEO, although someone else mentioned it at the end when we were making stock picks if you remember...... perhaps that other person had been talking to Bermuda earlier on that day, eah........(cant remember who picked it at the end)...
but yes Bermuda alerted me about MEO, and it made me jump up because it looks just like a AED in early stages......Oh I would love to ride the next AED...
....
Bermuda,
Interesting that this astute businessman told you AED $15 12 months...Ive been calling AED at $10 by the end of this year for ever...and I agree with $15... Ive posted that AED does have a shot at $20...
your friend is a great contact to have... continue listening to him, and share with me any other stock picks he may have...!...
....
One must feel that $15 for AED would put NWE at 50cents,
I already believe that NWE is worth that so there you go!...
and forward looking, it feels like a certainty in a sideways market....
....
Bermuda has made another top notch pick with BOW for a spec play...
what can go wrong with Santos drilling 7 wells with BOW a Joint venture partner free carried... no risk in that... thats not to mention the coal side of the business....top management at BOW....

the plunger,looking at other chat sites is a waste of time to get good oil info ... AED was the first stock I ever bought that broke the $1 rule you mention...and broke my stubborness of previously only holding penny dreadfuls... it has since changed me forever and I would seriously consider MEO as investment material, that has $10 SP potential on first production/bar gas price upside... MEO has downside aswell... but redrilling a previous discovery makes this an attractive more certain drill, and well rewarding....

.^sc

[The Plunger]

Thanks guys.

Yeah will probably just watch what happens with MEO. Dam that $1 rule !

Agree with your thoughts on BOW. Great assets & prospects. A staggering 34 permits, with half at meaningful percentages. Will be keen to see a fwd drill sch for the cooper-ero stuff. Just hope that comes about whilst those oppies are about !!

Little concerned at that rather large -ve NOC for last year, might need to raise more cash. Also hesitant that they are involved with Mosaic and Avery. I just managed to turn a profit on MOS prior to the Hurricane-2 result (dry), but it was looking grim there for a while after Avery did the dirty on them. Will be running the numbers through my spreadsheet !

L8R, Plunger

[mattyroo]

Bermuda,
and bulding a Methanol plant which is able to profit from Methanol which is a by product of natual gas...

Shrewd,
Coogee Resources also plan to build a Methanol plant, for which they have the exclusive rights to. I therefore wonder how MEO can be doing the same?