MadMax -

The MEO PR of 03/05 states "The drill syndicate, which includes new participants, is using a more cost efficient drilling rig to drill the first of up to three potential wells that are strategically located on contiguous lands leased from a private U.S. party." "...[U]p to three potential wells..." (JB#3, JB#4, and JB#5). This leads me to think that after JB#5 there could be a new syndicate. If MEO has more cash (from operations?) then they could retain a larger portion of the any future wells undertaken by the new drilling syndicate.

Where would those wells go? Perhaps on the land that MEO purchased last fall (note-the PR says that the "up to three wells....on contiguous lands leased from a private U.S. party."[emphasis added]

If MEO owns the land and has cash flow, they could hold a much larger % of any additional wells. So, MEO isn't drilling on its land (yet).

Does all of this ring true to you?

- Panamax