Capman, Stephens cals are about right. The 4% is the farm in percentage for ROC which appears small compared to HDR's 21%+. However HDR has 650M shares verses ROC's 176M. The leverage equation evens up the apparent farm in difference when calculating value per share.
Crudely speaking, for every 10 cents added to HDR's value for results that lie within PSC A, PSC B and PSC C ROC needs to add about 6-6.5c to hold even.
If you consider their relative prices in December clearly ROC has fallen along way behind HDR since then.
To see a full comparison check out StockAnalysis(7/7/04). This looks at the leverage of WPL,ROC and HDR to Mauritania.
Of course ROC has further upside in drilling programmes scheduled before Christmas that HDR are not participants.
HDR
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