Club Mulgoa

Tuesday, November 27, 2012

MEO

There are investors in the market out there with a cane.  If you have a good announcement, just good but not brilliant, then nothing happens to you.  But if you make an unsatisfactorily one, then the cane will just rain down on you.  MEO found gas but with the current hole, the gas is only seeping out slowly suggesting that the porosity is poor.  The gas is there but you can't extract it.  So the share price gets hammered.  But like everything in O&G exploration, most drilling expeditions come out with uneconomical results.  So you wait for just that ONE hit to compensation for the other losses.

... so waiting for my big one!

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