kingfisher1, page-14

618,

What I cannot answer is, in view of the huge rewards we believe are to be had from HDR's 50% share in the block in Uganda around $9 billion of revenue. Which should start rolling in from 2009. The board have elected to sell up for one sixth of that amount $1.5 billion. Tullow gets Uganda, Guyane, Mauritania and one or two other bits and pieces. It just does not make sense to me. Why can The Board not tough it out till 2009? Is outside pressure being placed upon them to sell? The Banks and Institutions for instance.

I must admit it came as a surprise to myself to read that Mr Potter was informing interested parties that HDR was up for sale. After all they had just expanded from exploration into production. I expected some teething problems but not less than six months on to find out The Board wished to offload HDR to anyone who could meet their valuation. I knew the sp was on the seabed but prospects for the company seemed ok to me short to mid term. However The Board held a different view of the future for themselves and HDR. On what was in the public domain to then find out The Board had placed the company in the shop window was a surprise.

IMO if TLW get HDR for A$2.02 they will have bagged a real bargin. TLW already know what Uganda is worth. It appears they will obtain a return for their total outlay from HDR's share in the Uganda block alone. Therefore anything else that comes from Mauritania or Guyane will be a bonus. That seems to me one hell of a good bit of business for anyone who gets HDR at close to that price.

The question I would like answered is "Why did The Board agree to put HDR up for sale"

regards

Acamas