In a recent Feer and Greed newsletter, an illustration was given as to the stock price value of an gas find.....see if you agree and if I apply it correctly to MEO's recent farm-in purchase.

A coorelation exists between proven and markatable reserves and market cap value. They sugested a TCF (1000 BCF's) has a market cap between 300 and 350 million. Applying a gas finds to this ratio and dividing by the companies total outstanding number of shares results in a stock price value for this well. The example was on another stock I oue Bayou Bend, 1 TCF = $300 / 330 M shares = $.91.

Applying this same relationship to MEO's farm-in of 23 BCF. (23/1000)=.023 * $300 M = 6.9 M and dividing by MEO's shares 142 M = $.049. It should be worth a 5 cent increase in stock price.

Hope my math is correct. I believe the same applies with oil....except the equalivant oil to gas of 6000 must be made.