hdr sells eni-agip percentage, page-47

re: hardmano...please read - irish broker Irish

Just back from winning a tennis final - so things are going well at the moment.

I think some may be surprised that HDR sold all of their recently acquired equity, but it does put an end to funding concerns. Its just possible that ANZ financing for Chinguetti and the equity purchase may have been stretching it a bit and that this sale will now lock in that financing (for 23% of Chinguetti develeopment costs not 35%). I think its very positive going forward and miles better medium term than a capital raising like a placement at a discount. Longer-term some may be disaappointed that HDR was not able to hold onto all the equity, but I think they must know that they have other very promising projects such as Pelican and other Block 7 prospects as well as prospects in Blocks 1, 2, 7 and 8 and in Gabon and Guyane (and Tiof to appraise and develop ASAP), and this sale allows them to better meet their committments in all those areas.

I would be surprised if the big money sees it as a negative, but we will see. On any weakness I will be buying!

H