Yes I think its the rise in POO, changed sentiment generally (rising market and oilers) .. and anticipation of an announcement saying Faucon has spudded in Block 1 and its a 300mbbl+ recoverable target (over 1 billion barrels in place potential). And they did CSEMI to select it over Petrel. And its not a WPL Block or JV!!!!
That's all good!! And I am a little hopeful that today or in coming weeks the WPL JV will announce an appraisal well on Labeidna .. either slotted in late this year or early next year.
Tiof is still a worry BUT the impact of a delay or a deferal of a development decision may already be factored in (I note in today's AFR that CSFB has downgraded HDR to a target of $2 from $3 due to increased risk associated with Tiof). There's no guarantee that the JV will announce anything soon on Tiof (WPL has already stated in its recent presentation that further appraisal is required)...but the outside chance of a "non-commercial at this stage and being sidelined in favour of Chinguetti tie-ins" is keeping me cautious. On the other hand a announcement of a likely phased development contingent upon further appraisal and successful flow testing would see HDR run hard IMHO.
Its a tough call at present but I reckon the risks are turning towards adding ahead of Faucon.
H
HDR
hardman resources limited
