sentiment since the agm., page-3

capman

I'm as disillusioned as anyone and have also sinned by falling in love!! But ... Only a couple of months ago (6 weeks in fact) the market was very happy to pay $2.50 for HDR as Ching production came on line and with excitement building on Uganda and other exciting prospects. So what has changed?? Here's a list:

1) Ching production has fallen steeply raising questions about further costs and WPL's competence

2) There has been a referal of WPL to the federal police concerning its dealings with Mauritania

3) The markets have suffered a correction which means that even good news is overlooked and bad news is punished even more. And there is as usual under these conditions a flight to safety and companies with cash flow .. and HDR's is falling!

4) The end of the finacial year approaching is compounding the woes as tax loss selling of HDR adds to the general market selloff

5) HDR did a significant placement in the UK when the market (me at least) thought there was no need because they were well funded by Ching cash flow ..... and within days the Ching problems emerged!!! Not good for sentiment and confidence in management's openness

6) Tiof concept has firmed but its at a higher than anticipated capex and tapping smaller than anticipated reserves initially and will produce first oil somewhat later than expected .. both of which lower some analysts valuations

7) Presentations started saying Guyane drill would be 2007 .. oh yeah but we have a farmout coming (yeah right) .. when the market was anticipating a drill by the end of June .. this year!

8) Rather than applying the placement moneys to fixing production problems and fast-tracking projects like Guyane (drilling it alone at higher equity), and or buying producing assets ... we get more new ventures (Suriname, Trinidad) and are promised 2 more!!

9) Do I need to go on ..................???

If we don't get some serious promotion of the significance of Uganda to HDR by SP and the new ventures are not announced "shortly" I'm filing for divorce!! LOL

Anyone want to add to this list or disagree?

H