All
Have arrived back at work from the Sydney presentation and I am aware that Hardmano and co. are having a drink...without wishing to steal anyone's thunder I will pen a few comments and let them put their interpretations separately....
Uganda...SP seemed upbeat about possible imminent results. Comment was that there will not be an announcement while we were at the presentation ie. while SP is engaged. However, expect something either late today or tomorrow...my interpretation!! I did not gain any negative sentiment from the comments he made. So I am expecting good news, but don't make investment decisions based on that! Comment also passed that SP had recently (don't know when)received a telephone call virtually unannounced from President Mussevani (spelling?). The implication was that Ugandan government want early production. Trucking from wells to Kampala and train to Mombassa is quite economically viable...rates to lift and get to Mombassa less than USD10bbl. Existing discoveries very likely commercial as they stand. More testing with on site tanks for flow etc...can test up to 10,000bblsday flows.
Guyanne...very interesting comments about the possibilities of adjacent Suriname offshore blocks..."we have built a relationship with Staatsoilie that we would like to build upon". Also, very likely a JV partner/farmin for Guyanne would want a drilling programme across the region. Sounds like 2 well programme very likely. Question asked by Hardmano..an asset swap for producing assets for Guyanne was "more unlikely". In Suriname it appears very likely there will be an arrangement with Staatsoilie for working over many abandoned wells on the Tamberedjo (spelling?) field. Said to be hundreds of wells that could be included successfully with modern completion techniques. Easy $$$'s to be made.
Falklands...Sounded to me as though this asset is pretty much on the backburner for HDR and that their interest could be available for swap/sale. I could have interpreted it too much that way, but comment was that if SP could get relative share equivalent of FOGL market cap for HDR's share, he would grab it with both hands. Reason....very difficult and expensive exploration.
Banda oil development possibility...definitely under consideration for tie-back to Chinguetti given current favourable oil price...344mbbls STOIP
Chinguetti...said to be pretty much in steady state production at the current lower level. Non-productive Northern wells either shut-in or could be shut-in soon. If well 16 to be re-drilled then sub-sea equipment could/should be able to be recycled which would/could mean that early remedial action with Atwood Hunter might be feasible. Depends a lot on WPL, but "no reason why they shouldn't be prepared to alter the drilling schedule if equipment etc available".
Tiof...conceptual study conclusion was very important to the share placement success. Seems WPL has virtually agreed the "tethered platform" technique and needs to be put into a formal proposal for consideration before end of quarter...development would have "in place" rig on platform to recycle investment across many wells at much lower cost that contracting drill ship to do it. Initial 40mbbls but eminently scalable and will expand when/as reservoir data comes in during early production. Timetable FID by end 2006 and first oil by 2009.
Those were my only notes....
regards
DF
HDR
hardman resources limited
