australia's woodside beats exxon to africa acreage, page-3

angers

Thanks for that item from DOW JONES. WPL and HDR sem to have done a great deal. This could be the payoff for all the secrecy and years of playing down Mauritania by WPL. Is it possible they were not completely open with Agip? Or is Mauritania simply outside Agip's core area and they didn't need the call on their resources and finances to fund its development (i.e. they are more interested in developed resources)?

Valuations being bandied around on the basis of this transaction are seriously flawed in my view. For example Intersuisse reviewed their recommendation today and used this transaction - it gives a false view of the value of HDR's share IMHO. They also value HDR at 62 cents on 100mbbl at Ching and 150mbbl at Tiof. These estimates should now be 150mbbl at Ching, 250mbbl at Tiof and 100mbbl at Banda. On this basis the valuation is $1.24 !! And then there is the likely tie-ins to Ching and Tiof that WPL and HDR have already talked about, plus other future blue sky discoveries. And then there is Blocks 1, 2, and 7 and the deeper water in PSCs A and B (where seismic is being collected). And then there is Gyuane and Uganda in the future.

Let's see what the market comes up with.

H